The Joint Administrators’ notices of extension of administration and intention to declare a dividend – March 2022
Joint Administrators’ update – August 2021
As was explained in the Joint Administrators’ most recent progress report, the Joint Administrations intended to apply to court seeking an extension to the Administration. The Joint Administrators needed more time to complete the sale of a segment of the loan book. As a result of the sale, more funds will be available to distribute to creditors (including redress creditors).
The Joint Administrators applied to the Court on 12 August 2021 and it made the following orders:-
The Joint Administrators’ term of office be extended for a period of 12 months giving a revised date for the automatic termination of the administration of 24 October 2022; and
The Joint Administrators will make any distributions and declare any dividends in respect of such distributions within thirteen months of the Last Date for Proving.
As a result of the above point 2, the Joint Administrators have until March 2022 to pay a dividend to the unsecured creditors (including redress creditors).
Whilst the Joint Administrators have been granted the above extensions, they are continuing to ensure that they can make a distribution as soon as possible.
Please note no further action is required by unsecured creditors as a result of the extensions and the Joint Administrators will continue to update creditors on the progress of the case in their progress reports.
Broke Girl in the City: All of these delays are appalling for those people like you and me who have been waiting for months for a token payout.
CashEuroNet pay outs not yet confirmed in latest report
This progress report for the Company’s administration covers the period from 25 October 2020 to 24 April 2021. The administrators have already extended the deadline to be able to wind down the company, with payouts intended to be paid before September 2020. Unfortunately it looks like this will be extended again, so we are unsure as to when we will get our final redress payments.
Report Highlights: o The Administrators continued to proactively collect the UK loan book in order to maximise realisations into the estate o On 9 July 2020, the Administrators successfully applied to the Court for permission to make a distribution to creditors in the administration. The Administrators have completed a NonBinding Offer phase in relation to the sale of the remaining loan book. Further work will continue to consider the merits of a sale o The Administrators have collected and assessed redress claims from the Company’s current and former customers. The redress claims portal closed on 14 February 2021. The total volume of accepted claims received was 169,062, which continue to be finalised o The Administrators continue to wind down the operations of the business as far as possible, subject to the work noted above o As a regulated entity, the Administrators have continued to provide regular updates to the FCA – It was anticipated that a final dividend would be paid before 12 September 2021 in accordance with the notice of intended dividend, issued on 15 July 2020. However, in order to allow further time to maximise asset realisations for the benefit of the Company’s creditors, it is likely the Joint Administrators will make an application to Court to seek a short extension to the notice of intended dividend – The total value of claims received is not yet known. However, since the total crystalised claims received and assessed as accepted significantly exceeds the money available to be shared out, any distribution to unsecured creditors will be significantly smaller than the accepted claim amount. – The administration is currently due to end on 24 October 2021 after the Court approved an extension to the initial 12-month period – However, as indicated above, as it is expected further time will be needed to realise the assets and to wind down the operations of the Company it is likely the Administrators will seek a further extension of the administration. The administration will end by converting to liquidation or, if all matters are resolved, a move to dissolution, in accordance with the Administrators’ proposals
CashEuroNet no longer accepting claims, but are due to make a final payout…Update 6/4/2021
Quickquid.co.uk. Onstride.co.uk and Poundstopocket.co.uk are all CashEuroNet LLC, which is currently in administration.
The online portal is now closed. However, there is a phone number should you need to change or check them. The final payment date is yet to be confirmed.
In their latest progress report, the Administrators stated that they are not in a position to estimate the total volume of redress claims. The total number of claims received as of 24th October 2020 is c. 108,000 with a backlog of another 14,000 at the time of writing.
Customer Support team is available on 0800 056 1515 for QuickQuid or 0800 210 0923 for On Stride Financial (formerly Pounds to Pocket).
CashEuroNet Assessment Update: 6/2/2021
I received an update this weekend from CashEuroNet to say that they had partially accepted my claim and confirmed a redress claim amount. So rather confusingly, the final date for claims is on Valentines Day 14th February, but you have until 14th March to update the portal with your details.
‘The Joint Administrators have assessed your claim and can confirm that it has been partially accepted. Your assessed redress claim amount is explained in the table below, with your claim amount detailed at the “Accepted claim value” row of the table. A breakdown of your loan history with CashEuroNet UK, LLC is also provided at the end of this email.’
The final date for claims is 14 February 2021, and following the closure of the claims portal we will provide a further update as to when we expect to declare and pay a dividend to customers.‘
Your payment will be made to the bank account documented on your portal. All credit files will be updated with loans removed from your credit files that have been accepted.
Personal Loan Details:
Total interest and fees on loans
Total compensatory interest
Accepted claim value
Refund for overpayment on CashEuroNet UK, LLC loan
The above are for my personal loans and so are only indicative of what you may receive.
Loan Breakdown (interest/fees)
Paid Interest And Fees
All loans will be remove from your credit file as part of the redress claim.
New Deadline: 14th March 2021
Today, 3rd February 2021, I received the following update from CashEuroNet UK to say that my claim is being processed. Make sure that you update the claim portal before 14th March 2021. It’s important to make sure that your correct bank details have been captured.
‘Thank you for submitting your claim in the administration of CashEuroNet UK, LLC (in administration). At this stage, no further action is required from you.
Please note, it may take up to 120 days for your claim to be processed and assessed. Once processed, you will receive an assessment outcome by email, which will detail the outcome of your claim in the administration.
Please note that, if your claim is successful, you will be provided with an accepted claim value. However, it is important to be aware that it is highly likely that the payment you receive will be much smaller than an accepted claim value. This is because it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out.
As a reminder, should any of your details change in the future, please contact us as soon as possible. Alternatively, your details can be updated through the Online Claims Portal which can be accessed here https://claims.casheuronetuk.co.uk/. You will need to follow the same authentication steps that you took when you entered your claim.
You will be unable to update your details through the Online Claims Portal after 14 February 21.
QuickQuid | CURO Transatlantic Limited
The online portal will be available from August says, Administrators but payout won’t happen until 2021.
I received an email in response to my claim against QuickQuid. The Claims portal will be launched in August 2020
“Thank you for your inquiry regarding your complaint. The Claims portal will be launched in August 2020. You will receive an email notifying you of the portal launch until then no further action will be required of you. Once the portal has launched, you will be required to log on to the portal to ensure that you provide up to date contact and payment details in the event that your claim is successful.
If your claim is successful, the payment you receive will be considerably smaller than your accepted claim value. This is because it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of CashEuroNet’s assets have been sold or realised and certain costs and deductions have been taken into account.
For and on behalf of CashEuroNet UK, LLC The Joint Administrators”
In October, Grant Thornton UK LLP was appointed administrators for QuickQuid. You might recognise the name from my articles about the Wonga payout.
“Chris Laverty, Trevor O’Sullivan and Andrew Charters of Grant Thornton UK LLP were appointed as joint administrators of CashEuroNet UK LLC on 25 October 2019 (the Joint Administrators). The company traded at Casheuronetuk.co.uk, Quickquid.co.uk, Onstride.co.uk and Poundstopocket.co.uk in the UK and provided lending services to the UK consumer market.
Following the appointment of the Joint Administrators:
There will be no new lending activity; and
All outstanding loans remain subject to the terms agreed with the Company and borrowers should continue to make payments in the usual way according to the Company’s terms and conditions.
The Joint Administrators will conduct an orderly wind down of the business, sale of the assets and start the process of identifying all creditors, in accordance with their statutory obligations.
The Joint Administrators will continue to work closely with the Financial Conduct Authority (FCA) as the administration process progresses, supporting customers where possible during this period.
All outstanding loans remain subject to the terms agreed with CashEuroNet, QuickQuid, On Stride Financial and Pounds to Pocket and customers should continue to make payments in the usual way. Those customers with complaints should continue to approach the company in administration. These complaints will then be assessed and if valid dealt with as unsecured creditors of the administration estate.”
News and updates:
The Joint Administrators’ notices of extension of administration and intention to declare a dividend – 15 July 2020
I have provided some of the details from the formal administrator’s website below.
Joint Administrators’ update as at 15 July 2020
Following a court hearing on 9 July 2020, the Joint Administrators of CashEuroNet UK, LLC (which traded at Casheuronetuk.co.uk, Quickquid.co.uk, Onstride.co.uk and Poundstopocket.co.uk) (“CashEuroNet”) wish to make available the following two statutory notices:
1. Notice of extension of administration
The present term of the administration expires on 24 October 2020. As set out in the Proposals and the First Progress Report, the Joint Administrators anticipated that the administration would continue for longer than 12 months to allow for the following tasks to be concluded:
(i) Realisation certain assets of CashEuroNet, including collecting the balance of the loan book, as far as possible; (ii) Pursue a sale of the loan book, if deemed appropriate; (iii) Assess and valuing all creditor claims, including redress creditor claims; (iv) Finalisation of tax affairs; and (v) Distribution to creditors.
As such, the Joint Administrators have received approval from the Court to extend the Administration by a further 12 months to 24 October 2021.
2. Notice of intention to declare a dividend
In order for the Joint Administrators to set a final date for those who believe they may be owed money to submit a claim, they must issue a notice of intention to declare a dividend. The notice of intention to declare a dividend in relation to the administration of CashEuroNet can be accessed at the link below:
As you will see from the notice, all claims must be submitted by 14 February 2021 or they may not be considered for assessment. It is expected, unless you receive notification to the contrary, that the Joint Administrators will make a payment to creditors with accepted claims within seven months of 14 February 2021 (i.e. by 14 September 2021).
For those claimants who have already submitted a claim, no further action is required from you at this stage and the Joint Administrators will be in touch regarding the assessment of your claim.
If you have not yet submitted a claim and believe you have been sold an unaffordable loan by CashEuroNet, the Joint Administrators will shortly be launching an Online Claims Portal. The Online Claims Portal will be the channel for customers to submit a redress claim in a secure and straightforward manner. The Joint Administrators will be contacting all past and present customers of CashEuroNet once the Online Claims Portal is open to receive claims.
If you have any questions or require any further information regarding the above notices, please contact the QuickQuid Customer Support team on 0800 056 1515 or [email protected], or the On Stride Customer Support team on 0800 210 0923 or [email protected], as applicable to your loan. The Customer Care team are here to help Monday to Friday 8am-6:30pm and Saturday 10am to 6:30pm. We are closed on Sundays and Bank Holidays.
Can you make a claim?
If you believe that you were provided with an unaffordable loan(s) through Pounds to Pocket, QuickQuid or On Stride Financial you may have an eligible claim.
What is an “unaffordable loan”?
The unaffordability of a loan will be assessed by the Administrators, looking at the criteria of the loan at the time it was taken out by the customer. For more information, we suggest you visit guidance notes from the Financial Ombudsman.
How to make a claim
If you believe you are eligible, you can make a claim through the Customer Support team at [email protected] or via phone at 0800 016 3114 for QuickQuid or [email protected] or via phone at 0800 210 0923 for On Stride Financial, as applicable to your loan.
The Administrators are working on an Online Claims Portal which is going to be made available at the end of August. I personally am going to wait for this portal to go live.
I have an unaffordability claim which I need to submit
If you are a customer and believe you were sold an unaffordable loan (either through Pounds to Pocket, QuickQuid or On Stride Financial), but have not received any communications from them, please contact Customer Support on 0800 056 1515 if your loan is with QuickQuid or 0800 210 0923 if your loan is with Onstride.
Do I need to go through an agency to make a claim?
No you don’t. Just go direct. An agency will take a cut of the money.
What happens if I have already submitted a claim?
Any unaffordability claims which were being handled either by Quick Quid or On Stride will now be assessed by the Joint Administrators. You will not need to re-submit a claim, however, it is important to note that the claim will no longer be resolved within the usual eight-week timeframe.
Should your unaffordability claim be upheld, you would be considered an unsecured creditor for the value of the assessment claim. However, the timing and quantum of the final creditor claim is currently unknown and will not be known for some time. Please do note, however, that any payment is highly likely to be significantly smaller than the accepted claim amount. This is because it is expected that the total value of all accepted claims will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of CashEuroNet UK LLC’s assets have been sold or realised and certain costs and deductions have been taken into account.
What happens if my claim is with the Ombudsman?
Any unaffordability claims which were being handled by the FOS are now in the process of being handed back to the Joint Administrators. You will not need to re-submit a claim. Your FOS claim will now be assessed by the Joint Administrators in due course. It is important to note that the claim will no longer be resolved within the usual eight-week timeframe. We understand that the FOS has been in contact with you in relation to these.
If I have a valid claim when will I get paid?
The Administrators will assess all redress claims during the course of the administration. No payments will be made until all of the assets have been sold or realised.
The Administrators are working with CashEuroNet to identify whether, following the determination of your claim, you can be notified of the status of your claim. Currently, we do not have a date for payment of any claims. Further updates on unaffordability claims will be posted here when available.
Please be aware, if successful, the payment you receive will be considerably smaller than your accepted claim amount. This is because it is expected that the total value of all accepted claims received will significantly exceed the money available to be shared out. The money available to be shared out will not be known until all of CashEuroNet UK LLC’s assets have been sold or realised and certain costs and deductions have been taken into account.
Will I get asked for my bank details?
You may be asked to confirm that your previous bank details are still valid. Don’t miss this opportunity to update your bank details (e.g. if you have closed/changed bank accounts). Most Wonga and WDA payments failed due to incorrect bank details. Although further proof of ID and other supporting evidence may also be required.
Background leading to administration
In the Administrator’s progress report, dated 18th May 2020 available at grantthornton.uk/portal. CEU merged with its sister company EuroNetCash LLC in October 2018, consolidating its loan product business, Pounds to Pocket with the oNstride Financial trading name. CEU is a subsidiary of Enova Group of companies.
New guidelines introduced by the FCA, meant that loans were granted with a reduced APR and the high levels of Redress Claims from customers. The company looked to preserve the business, but on 24th October 2019, they ceased lending with immediate effect. With approval from the FCA, they appointed Grant Thorton UK LLP as administrators on 25th October 2019.
Collections and Loan Books
When the Administrators came on board, there were 498,000 loans outstanding with a balance of £300.5million across QuickQuid and On Stride Financial.
24th October, they reported that there were a mix of the following loans on their books:-
Current loans in arrears of less than 6 months totalled £2.4 million
In arrears more than six months, totalled £260.6 million
During the administration process, £38.4 million had been collected during 25 October 2019-24th October 2020. The Joint Administrators receipts and payments reflects £47.2 million (timing difference). The impact of the Covid-19 pandemic meant that 1.7% of customers with outstanding loans had reported financial difficulties. No doubt the real number is much higher. The company had a cash balance of £34.7 million, of which £34.2 million was recovered by the Administrators.
In November 2019, the FOS no longer were dealing with complaints and the c. 5,400 cases were sent to the Administrators. That said, the company had already submitted their costs and expenses for winding down the company to be £1,574,237 and £4,962. The administration was due to end 24th October 2020 but has been extended for another 12 months.