Payday lender Cash Store collapses with 120 jobs lost
Personal Finance Editor
Tuesday 05 August 2014
A high street payday lender with 27 branches in the north-west has collapsed, leading to the loss of 120 jobs.
Cash Store has been put into administration by its Canadian owners after losses mounted up at the Stockport-based British subsidiary.
Administrator Chad Griffin of FTI Consulting, said: “All efforts were made to seek a buyer for the business, but the company had been lossmaking for some time.”
Cash Store’s loan book has been sold to Croydon-based debt collectors, SLL Capital.
The business had relied on funding from its Canadian parent, but it was withdrawn last month.
However, it’s not clear whether the lender was another victim of the regulatory crackdown launched by the City Watchdog in April.
The most high-profile victim of the tough new rules was the US-owned Cheque Centre which pulled out of payday lending in May.
The 450-branch business was believed to have withdrawn from offering payday loans on worries that it couldn’t make a decent profit under the new regulations which restrict profitable rollovers and enforce more responsible lending.
When the Financial Conduct Authority introduced the rules in April it revealed that around 100 of the UK's 210 payday lenders had stopped offering the service in the previous 18 months.
At the same time the Consumer Finance Association – which represents around 60 per cent of the high-cost credit sector - suggested that half of all payday loan firms could shut their doors as a result of the new rules.
Commenting on the collapse of the Cash Store, Citizens Advice chief executive Gillian Guy said: “A lender closing its doors does not mean all is solved for short-term loan customers. There is still a long way for the industry to go before it has cleaned up its act. It’s only been a matter of months since new rules from the FCA were brought in so it’s too early to tell whether lenders have upped their game.”
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 3 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Russian hack of President Obama's emails worse than previously admitted
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Nepal earthquake: US Pastor Tony Miano sparks outcry by suggesting Nepalis should convert and not rebuild their 'pagan shrines'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...