Payday lending: Quick Quid owner agrees to refund £1.7m

payday loan application form Image copyright Thinkstock

A payday loan company has agreed to refund thousands of customers who took out loans they could not afford.

Up to 4,000 customers of loan sites Quick Quid and Pounds to Pocket will be refunded an average of £425 each.

The parent company, CashEuroNet, will pay out a total of £1.7m, according to the Financial Conduct Authority (FCA).

Following an investigation, it was found that some customers were lent sums that they could not afford to repay.

Last week, Dollar Financial, the owner of The Money Shop, agreed to pay £15m to 147,000 customers, for a similar reason.

"It is important that firms carry out appropriate affordability checks, and pay particular attention to fair treatment of those who have trouble meeting their loan repayments," said Jonathan Davidson, director of supervision, retail and authorisations at the FCA.

The company has now made changes to its lending criteria.

Customers affected need to take no action, and should be contacted by the company within the next three months.

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