FCA Puts Payday Lender 247 Moneybox In Joint Administration
02 Dec 2019
Approx Reading time: 3 minutes
- The UK’s FCA has placed payday loan lender 247 Moneybox under joint administration
- 247 Moneybox becomes the latest payday loan lender to go under after QuickQuid also went bust recently
- Joint administrators to wind down 247 Moneybox business by selling assets
The UK Financial Conduct Authority has placed payday loans lender Active Securities Limited under administration. The high-cost short term loan lender has been trading as 247 Moneybox.
Payday loans lender 247 Moneybox in joint administration
The move comes weeks after the FCA placed payday loans lender QuickQuid into administration following a series of customer complaints. High-cost short term loan lenders in the UK have been facing increased regulatory scrutiny in recent times. There is scrutiny on the lending practices of the firms that usually mis-sell unaffordable loans to consumers.
Active Securities Limited becomes the latest payday loan lender to be under the radar of the FCA. The FCA appointed Harrisons Business Recovery and Insolvency's Tony Murphy, David Clement, and Paul Boyle as administrators of the lender. Payday loans lenders lend customers small sums of money for a few months or until next payday. Although the loans are easily accessible, they nonetheless carry high-interest rates making it difficult for consumers to repay. As a result, this has trapped most consumers in credit debt, especially low-income earners in the UK.
247 Moneybox to cease issuing new loans
However, the FCA has indicated that all current loan agreements will remain in place. As a result, the proposed administration will not affect the loans, but 247 Moneybox will not issue new loans. The FCA has stated that it will keep close contact with the joint administrators and the lender. It is to ensure that there is fair treatment of customers.
The lender notified customers of the move by placing a statement on its website that it is under administration. It indicated that it is under the joint administration of David Clement, Paul Boyle, and Tony Murphy of Harrisons Business Recovery and Insolvency. The payday lender that has been offering services to UK customers indicated that all new lending has stopped.
However, the statement urged customers to continue repaying their outstanding loan balances the usual way. The firm has warned that should customers receive requests to repay on different accounts; they should notify customer care.
In such situations, customers should report to customer care through firstname.lastname@example.org or call through 0207 183 8078. The company also warns customers against sharing their account details or information to anyone who asks them to. It is because the company doesn't ask for the customer's bank details.
Administrators to wind down 247 Moneybox business
Despite going into administration, the payday loans lender's customer service will be offering assistance to customers on any issue. The administrators will wind down the business in an orderly manner. It is in a bid to recover 247 Moneybox's assets for the good of its creditors.
However, the wind-down of the payday loan lender might likely include selling off its assets. Equally, administrators will start the process of identifying creditors as per the Insolvency Act 1986. Customers with complaints should approach the administrators, and as a result, their claims will be taken as unsecured creditor claims.