US-based payday loan giants Curo, QuickQuid and Lending Stream who 'target British customers with up to 2,000% APR loans' could face legal action in 'bigger scandal than PPI'
- Paydayrefunds.co.uk may take action against Quickquid, Curo & Lending Stream
- The US lending giants are accused of taking advantage of vulnerable Britons
- Paydayrefunds.co.uk said they will apply for injunction at London's High Court
- Suggestions these firms could owe tens of millions of pounds in compensation
Giant American payday lenders could face legal action in the UK today after they were accused of mis-selling loans to up to a million Britons.
Paydayrefunds.co.uk are preparing legal action against Quickquid, Curo and Lending Stream after the US-payday lending giants have so far refused to disclose information on customers who could be due tens of millions of pounds back in compensation.
The company issued a letter of action six months ago, which is due to run out next Friday. Paydayrefunds.co.uk revealed they have already appointed a barrister in preparation for issuing an injunction at the High Court against the lenders.
Paydayrefunds.co.uk are preparing legal action against Quickquid
QuickQuid make it easy for customers to borrow money, as users are greeted with a simple form when arriving on the website
Payday lending schemes were loosely regulated until 2014, when the Financial Conduct Authority (FCA) demanded that firms make amends to borrowers who had been dragged into further debt.
A cap was imposed on industry charges as part of the move, but lenders are alleged to have not carried out proper credit checks, charging high interest rates and 'preying on vulnerable people in society', according to Vincent Vernon of paydayrefunds.co.uk.
Mr Vernon, the director of the company, has 32,000 customers claims which need to be examined, which could total tens of millions in compensation.
Curo, an American lending firm which operates as Wage Day Advance in the UK, was recently floated on the US stock market for $670million - yet Vernon said they and other lending companies have been dragging their heels in examining customer compensation claims.
Speaking to MailOnline, Mr Vernon told MailOnline: 'Large US Payday Lenders Curo, who recently floated for $670m in the USA, QuickQuid and Lendingstream, preyed on UK consumers for years with reckless lending.
US lending giants Curo, who operate Wage Day Advance in the UK, recently floated on the US stock market for $670million
'Following an FCA ruling that many of these loans were mis-sold and needed to be refunded, these same payday lenders are now unwilling to refund.
'We see this as a bigger scandal than PPI because it directly affected the UK's most vulnerable people, who were targeted for 2,000% APR loans without any of the required checks to see if those loans were affordable for them.
'In the face of potentially tens of millions of pounds in claims repayments, these lenders are now abandoning their former borrowers and coldly ignoring their right to compensation.
'PaydayRefunds.co.uk has now written to these lenders to warn them of impending legal action at the High Court, as we seek fair treatment for our customers. They may flout their regulatory requirements but we hope that the courts will hold them to account.'
Andy Gannon, the operations manager for paydayrefunds.co.uk, said the average amount borrowed by customers averaged around £1,100 - yet the figures could end up being much more due to the high APR.
In some of the worst cases, people had taken out as many as 60 loans at extortionate interest rates.
Lending Stream could face court action as early as tomorrow after not replying to paydayrefunds.co.uk letters
Mr Gannon added in the cases which QuickQuid had examined, 72% of customers had success with their claims.
Under the new regulations, customers who were missold loans were entitled to the full sum back, any interest and associated fees, as well as lenders having to pay eight per cent interest on top of that figure.
Legally firms are expected to investigate claims within an eight week period.
Speaking to MailOnline, Mr Gannon said: 'These companies would often trap some of the most vulnerable people in society in an endless cycle of debt.
'They would text customers who had not paid back their loans asking if they wanted to take out another to pay back their existing loans.
'Simply replying yes to the text, they would have the money in the customers' bank account in just ten minutes.
'They need to take responsibility for their actions.'
MailOnline has contacted Quickquid, Curo and Lending Stream for comment.
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