Loan broker closed down

By Bridging Loan Directory -

 

A Manchester based loan broker which targeted financially distressed clients has been closed down following an investigation by the Insolvency Service.

First Money Direct, which was based at Universal Square in Ardwick, was wound up by the High Court after a case brought by the Insolvency Service’s Companies Investigation Unit.

The firm, which was owned by 39 year-old Naji Zaibunnisa, targeted clients “who have previously been turned away by other lenders”, according to its website, and charged them administration fees of either £49.95 or £99.95. It then either failed to arrange loans which it said had been approved or guaranteed, or offered clients loans on significantly worse terms than originally quoted.

Although the company failed to keep proper records, the Companies Investigation Unit said it appeared to have received fees of over £360,000.

 
Investigation Supervisor Colin Cronin said:

“First Money Direct Limited used misleading methods to obtain fees from clients by claiming that their loan applications had been approved or were guaranteed when, in reality, the company was doing no more than gathering information for onward submission to lenders.

“Those behind such companies should be aware that The Insolvency Service will take firm action when the public are deliberately misled in any way.”