QuickQuid, which claimed to have served 1.4 million customers, has stopped lending after accountancy firm Grant Thornton was appointed as its administrator. 

The failure comes a year after its rival Wonga collapsed following a surge in customer compensation claims.

Despite QuickQuid’s move into administration, CAS wants to highlight that the decline of payday loan companies does not signal that debt is “less of a problem”.

Mike Holmyard, CAS spokesman, said: “Payday lenders used to be a huge part of the casework brought to the CAB service. Too many lenders were charging extortionately high-interest rates without being clear about these at point of sale, and this led hundreds of thousands of people into the misery of debt.

“CAS and others fought for better regulation of the industry and this has reduced the numbers of people caught out by payday lenders in the last few years.

“However the fact that we are seeing fewer payday loan cases does not mean that debt itself is less of a problem. People who need money are seeking other ways of finding credit, and debt remains one of the biggest issues we see at the Scottish CAB network.

“As the biggest provider of free debt advice in the country we urge anyone with debt problems to seek our free, confidential and impartial advice.”