Fscs

marshallka

I have noticed that lots of these larger secured loans brokers are going bump just lately (most probably because they are "having" to repay MISSOLD PPI!!) but then who actually funds the FSCS when they have drained their business's dry before putting them into liquidation?

All these people moaning about people claiming back PPI and causing smaller broker firms to go into liquidation should look at the larger firms like Picture finance, Click Finance, Freedom Finance etc and ask how they have actually added to the fees that "nice and uncorrupt" firms are having to pay.

Why when these type firms go bust are they then given the go ahead to start up again with another name but often the same directors and a brand new licence? Surely if they have failed in so many firms already then they should not be allowed to direct another firm most probably doing the same again. Why aren't the firms investigated thoroughly?

~Brock~

Do you really think anyone charged with looking after anything that has been set up by the past/present government actually thinks that far ahead??:rotfl:

marshallka

~Brock~ wrote: »

Do you really think anyone charged with looking after anything that has been set up by the past/present government actually thinks that far ahead??:rotfl:

I was meaning that Click Financial have now gone into administration (another large secured loan lender) BUT when they have done this in the past they just open another and another (same with Picture!!) and the OFT allows them a licence. WHY????

Surely there is something "fishy" going on with all these lenders/brokers? Sometimes it can seem so "orgainised"!!!

dunstonh

who actually funds the FSCS when they have drained their business's dry before putting them into liquidation?

me.

ok, not just me but me along with all the firms that are left trading. Most of whom have done nothing wrong. The system is effectively funded by the good paying for the bad.

roonaldo

brokers and small lenders have fast been disappearing since the subprime lending declined in 2007.

di3004

marshallka wrote: »

I was meaning that Click Financial have now gone into administration (another large secured loan lender) BUT when they have done this in the past they just open another and another (same with Picture!!) and the OFT allows them a licence. WHY????

Surely there is something "fishy" going on with all these lenders/brokers? Sometimes it can seem so "orgainised"!!!

I agree Marshallka, it doesn't seem right.

Dissolving, starting another and so on, seems Click have been doing this for a number of years, same directors etc..its not as if they don't get on, because the 2 we know have stuck together like glue on all companies they have started up.

http://www.ehow.com/how_2362978_dissolve-business-partnership.html

There is a name for this to what I can recall, something like Phoenix is it?


A few of the comments in the write up of the above link.

1 Analyze why you want to dissolve the partnership. Perhaps you and your business partner don’t get along or you have different end goals at this point in the business. Perhaps one of the partners wants to retire and no longer has the energy or desire to work on the business. You have to look at your assets, customers, inventory, and anything else that is shared in the business. Sometimes it just doesn’t make sense to dissolve the business. Be sure you analyze the situation before attempting to dissolve the business. It is a lengthy and expensive process. Remember: both partners must agree to dissolve the business.

5 Examine leases, contracts and loan agreements before dissolving the business. You want to make sure that there will be no legal issues if the business is dissolved. You don’t want someone filing a lawsuit against you and your partner because you didn’t follow the agreement. Don’t neglect to learn if the dissolution of the partnership will affect those agreements




Read more: How to Dissolve a Business Partnership | eHow.com http://www.ehow.com/how_2362978_dissolve-business-partnership.html#ixzz1PwHy9mtP

di3004

http://blog.thecompanywarehouse.co.uk/2010/03/15/phoenix-companies-and-new-company-formation/

Phoenix Companies and New Company Formation


The term “phoenix company” is used in reference to new companies which have “risen from the ashes” of a dissolved or liquidated company. Over the years, a number of companies were forced into liquidation only to re-appear, harvesting the assets of the fallen company to start a new company under the same or similar name. Rules surrounding such actions were made more stringent by the introduction of Insolvency Legislation (the Insolvency Act 1986) and subsequent regulations and the actual insolvency process is now tightly regulated to prevent abuse. However, a number of people are left wondering if they can use the company name from a dissolved or liquidated company to start a new company.

di3004

I don't think they would all be protected to have claims dealt with by the FSCS either, well in my case not because Click Finance Ltd were not regulated when I taken out my loan in 2004, then in 2006 they dissolved.

They already run other "click loan businesses" plus opened the doors to yet more Click businesses.
Didn't one close down in April this year as well?

marshallka

di3004 wrote: »

I don't think they would all be protected to have claims dealt with by the FSCS either, well in my case not because Click Finance Ltd were not regulated when I taken out my loan in 2004, then in 2006 they dissolved.

They already run other "click loan businesses" plus opened the doors to yet more Click businesses.
Didn't one close down in April this year as well?

Seems that way Di. They didn't have it open for long though. It was one that was granted a licence after already closing one of the other ones that closed just after a licence was granted to another one...... makes it so complicated for the consumer!!

You never know who you are dealing with and also the authorities have difficulties there as well. Mind you I think its supposed to work like that. Send you round in circles for 3 years since you first became aware of a complaint and then the courts are of no option. FOS don't have a clue who is to blame for what and Its almost "organised" like that isn't it and authorities seem almost scared of doing anything. That is how it seems to me.

Then you have some that blame the consumer for complaining and causing hardship to firms, accused of putting in vexatious complaints (yeah too right we are vexed) just for trying to get back what is rightfully theirs. FOS actually tell you to complain to the insurer and then hold back for such a long time that you then have no other options when they tell you "no can do". Who is working for who?

marshallka

However, a number of people are left wondering if they can use the company name from a dissolved or liquidated company to start a new company.

Click Finance Limited name is being used again. Don't know if its anything to do with the old "Clicks" though!!! I have checked the OFT register for a licence on it but nothing as yet and just the old Clicks. It does sound though like a finance type company (Click FInance!!). I pity them buying that name if they are nothing to do with these old firms.

I don't think they would all be protected to have claims dealt with by the FSCS either, well in my case not because Click Finance Ltd were not regulated when I taken out my loan in 2004, then in 2006 they dissolved.

No they got away with all of that and must of made millions and are leaving "nice firms" to foot the bill for the few they have not got away with. Either way they always win.

di3004

Some info below from pages 31 England and Wales.




http://www.insolvencyreg.org/sub_publications/docs/Report%20on%20Phoenix%20Companies%20Final41029.pdf

Chapter 6