Which payday loan companies have closed

But the OFT says the firm in fact ignored its requests to stop sending letters to them. MCO Capital has 28 days in which to appeal against the revocation of its consumer credit licence. The authorities are starting to taken an increasingly aggressive stance against rogue money lending firms on the internet. The FCA guidelines made it mandatory for the payday loan companies to fix the number of loans a person can buy at a time.

It also asked the companies to check the affordability factor of the customers before disbursing the loans. The companies were also asked to put up caution and warnings on their websites.

Other important payday loan companies that have reported bankruptcy include Quick Quid and The Money Shop. It is true that since their inception in , payday loan companies never had to conform to the regulation as strictly as since the introduction of FCA guidelines. The clean-up exercise taken up by FCA has finally introduced the best practices for the sector to chart out a fresh and sustainable growth trajectory.

However, besides the FCA clampdown, the market has seen competition from similar new products that offer both a longer time span of months to repay the loan and a more sensible interest rate than what some payday loan companies have been charging their borrowers. The business model of payday loan companies was lopsided that always put the borrowers at a disadvantage, and therefore, it was not sustainable. Kenneth Barker took out 11 consecutive loans in less than a year when he was a barman in Essex in It gradually worsened," said the year-old, who now lives in Leeds.

He said: "I then went to the financial ombudsman. I was told I'd get it within 28 days. I'm hoping I will still get that money! Despite waiting for his compensation, he said he was pleased that a business such as QuickQuid would be closing.

New rules brought in five years ago limited the interest rates and fees payday lenders can charge and introduced enhanced affordability checks. Since then there has been a wave of complaints from customers who say they were mis-sold loans they could not afford.

QuickQuid has been facing as many as 10, or more outstanding complaints from borrowers. Such legacy loan complaints, many of which came via claims management companies, were the key reason for the demise of Wonga last year.

The closure of QuickQuid might lead some to think their loan is invalid - but it is not.