Norton Finance Enters Administration

toddle2u

It has been announced today that Norton Finance has entered Administration as it struggles under the weight of PPI claims

Loan broker giant Norton Finance (UK) has entered administration, with Duff & Phelps appointed to handle the process.
The affairs of the Rotherham-based specialist intermediary – founded in 1988 – will now be dealt with by joint administrators Sarah Bell and Philip Duffy.
According to its most recent accounts for the year ending April 2010 the company recorded a trading loss of £3,190,684 with current liabilities exceeding total assets by £1,986,688.

The accounts explained the trading loss incurred “includes a substantial provision against future compensation claims resulting from the historic sales of payment protection insurance (PPI)”.
The accounts stated: “The current economic climate is challenging. The directors have concluded that the combination of these circumstances represent a material uncertainty which casts significant doubt upon the company’s ability to continue as a going concern.”
Also in the accounts auditors Allots Chartered Accountants raised doubts about the company’s continuing ability to operate as a going concern.
The report stated: “These conditions… indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern.”
Norton Finance (UK)’s directors at the time were Keith Stringer, Paul Stringer and Steven Mee.
Director Keith Stringer remains a director of Norton Finance Group, Norton Finance and Mortgages and Norton Financial Services.
According to a well-placed industry source many credit brokers have struggled to survive under the weight of PPI claims.
Insolvency News understands that the industry body representing finance brokers – the Association of Finance Brokers (AFB) – had written to the Financial Services Authority (FSA) warning that brokers would fail if they are forced to deal with PPI claims without the financial support of the banks that originally manufactured the products.
A spokesperson for Duff & Phelps said: “It’s not the main enterprise. it’s a re-structuring exercise.
“There was a PPI liability but there were no assets.
“They had a small team of employees who were processing PPI claims and they have all been transferred.
“The rest of the business is perfectly profitable.

Electr0n

My heart *bleeds* as I play the smallest violin in the world

amersall

Could not have happened to a nicer company.

Kuffs1978

Paul Stringer is one of the most unpleasant people I have ever spoken to, and I just hope that their Compliance Manager Julie Gregory never find ourselves in the same room!
Pardon my ignorance Amersall, but where exactly does this leave us? What's the best way of moving forward? The FSA said we could only us the FSCS in the event that Norton went into liquidation. I'm still learning about all this so not sure I know what to do.

amersall

Ring the FSCS they will send you a claim form, now Norton have defaulted.

ANY_CHANCE

What goes around comes around

ANY_CHANCE

''However I am pleased to announce that Norton Finance and Mortgages has acquired the business and all employee positions will be protected,” continued the statement.''
http://www.insolvencynews.com/article/13411/corporate/national-finance-brokerage-enters-administration

themass

Not sure what to do here, i have a claim with the FOS, 6 months in and waiting, should i wait for them to tell me to contact FSCS, or will they pass all the details and info on to them.

magpiecottage

That's interesting.

According to the FSA register, Norton Finance UK Ltd is an Appointed Representative of Norton Insurance Limited and has never been directly authorised by the FSA.

That would mean any complaints should be directed to Norton Insurance Limited, not Norton Financial UK Limited, in respect of complaints about insurance sold on or after 14 January 2005

marshallka

Yep, they have folded

From the Gazette

Publication Date: Friday, 10 February 2012
Notice Code: 2410
Appointment of Administrators
In the High Court of Justice, Chancery Division
Manchester District Registry No 2172 of 2012


NORTON FINANCE (U.K.) LIMITED
(Company Number 02209551)
Nature of Business: Credit Broker.
Registered Office of Company: Norton House, Mansfield Road, Rotherham, South Yorkshire S60 2DR.
Principal Trading Address: Norton House, Mansfield Road, Rotherham, South Yorkshire S60 2DR




Date of Appointment: 07 February 2012.

Joint Administrators' Names and Address: Sarah Bell and Philip Duffy (IP Nos 9406 and 9253), both of Duff & Phelps Ltd, The Chancery, 58 Spring Gardens, Manchester, M2 1EW Further details contact: Email: Manchester@duffandphelps.co.uk Tel: Manchester 0161 827 9000


BUT, as Norton Finance were appointed reps of Norton Insurance Services limited and they appear to still be trading they should handle the claims still or am I wrong here and need correcting????

I know there was loads of mix ups whereby people were sending in claims to FOS regarding Norton Finance and these policies were sold AFTER 14th Jan 2005 but FOS were sending people away saying they were not within their jurisidiction.. BUT the complaint should have been registered against Norton Insurance Services Limited and when resubmitted against the NIS they were dealt with by FOS.

marshallka

amersall wrote: »

Ring the FSCS they will send you a claim form, now Norton have defaulted.

Just checked the FSCS default register and they are not on yet as its early days but surely as Norton Insurance Services Limited are still trading as yet they should handle complaints for insurance sold after 14th Jan 2005????