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Payday firm in administration months after agreeing £34m redress deal

by: Paloma Kubiak
  • 13/04/2017
  • 0
Payday lender CFO Lending has entered administration just a few months after agreeing to pay £34m redress for ‘unfair’ consumer treatment.

CFO Lending offered two types of loans: payday loans and to a smaller extent, guaranteed loans.

The company entered administration on 6 April and Harrisons Business Recovery and Insolvency Limited has been appointed administrator after receiving consent from the regulator, the Financial Conduct Authority (FCA).

It comes just seven months after CFO Lending agreed to pay over £34m of redress to more than 97,000 customers for unfair practices, such as the system not showing correct loan balances, misusing banking information to take payments without permission and routinely reporting inaccurate information to credit reference agencies.

The redress consisted of £31.9m written-off from customers’ outstanding balances and £2.9m in cash payments to customers.

At the time it filed for administration, CFO Lending said approximately 26,400 customers and former customers were owed varying amounts, including interest which totals £3.6m.

Harrisons said it is emailing all customers who may be affected to give details of the amount due, according to company records.

On its website, it said that customers who believe they are owed money but who have yet to receive an email should email giving the following details: full name, account/reference numbers and any information or documentation to support the claim.

Harrisons added that it does not “envisage that there will be sufficient funds to enable the payment of a dividend to unsecured creditors” though said individuals should check the site for updates.

If your claim is £1,000 or less (including VAT) you don’t have to submit any evidence to prove your claim and you don’t need to do anything. If you have a claim of £1,000 or more, you have to submit proof of the debt., Mortgage Solutions’ sister-title contacted Harrisons to find out if the remaining customers will receive outstanding redress and is awaiting an update.

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