CFO Lending assets up for sale after payday firm goes into administration
Payday lender CFO Lending has collapsed into administration, months after being forced to fork out £34 million for overcharging and threatening customers.
Directors have appointed Harrisons Business Recovery and Insolvency to oversee the process, which will see the business and assets put up for sale.
CFO Lending reached a settlement with the Financial Conduct Authority (FCA) in September to pay £34 million to cover outstanding customer balances and cash payouts, after it was found to have overcharged, taken unauthorised payments and sent threatening letters to customers.
The redress added further pressure to CFO Lending's finances, which shut to new business in 2014.
Harrisons said: "Trading deteriorated sharply since the start of 2017, leaving the company with no viable option for the ongoing trading of the business other than to seek the protection of administration while seeking a longer term solution in the interests of all stakeholders."
More than 26,400 clients are still owed "varying sums" from the company, totalling around £3.6 million.
The administrator is contacting all affected current and former clients, and will continue to manage the firm's loan book until an appropriate buyer is found.
Harrisons Business Recovery and Insolvency director Paul Boyle said: "We shall exercise our duties as administrators which include ensuring that client customers of CFO Lending continue to maintain their repayments on any outstanding loans."