Loans At Home becomes the latest high-cost lender to collapse into administration

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As a result, Leeds-based Loans At Home has stopped making new loans, after a report found it was causing ‘harm’ to some of its customers and that covid had damaged its business model

The lender ran into difficulties and is now in administration

High cost lender Loans At Home fell into administration after the ‘harm’ it caused to customers.

Loans At Home offered Home Loan – the type of loan collected by agents at your property.

It is offered loans between 14 and 63 weeks, with common APRs in the range of 450%, according to reports.

But money watchdog the Financial Conduct Authority (FCA) announced this week that the company had gone into administration.

The company cannot make new loans.

However, all of its current loans remain in place, meaning borrowers have yet to make their repayments.

SD Taylor, the parent company, was established in July 1955.

In turn, SD Taylor is part of the Non-Standard Finance group, owned by Non-Standard Finance plc.

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A note on the NSF website says a review found “there may have been harm to some mortgage customers.”

He added that discussions with the FCA meant that directors believed Loans At Home was “no longer viable” as a business.

NSF bought SD Taylor in 2015 for £82.5m.

Loans At Home lent £45.4million to customers in 2020, according to its latest accounts – 41% less than in 2019.

The company said this was because the covid shutdowns meant it could not visit customers in their homes, undermining its business model.

He stopped loaning at all for two months in 2020 and posted a loss of £2.5m for the year.

Grant Thornton is the administrator of Loans At Home.

Customers with questions should contact SD Taylor Customer Service on 0800 0114490 or email customerservice@loansathome.co.uk.

FCA, NSF and Grant Thornton have been contacted for comment.

Loans At Home is the latest in a series of high-cost lenders to run into trouble.

TFS loans from last month’s high cost lender collapsed in administration following allegations of “unaffordable loans”.

The company is known as a surety lender, which means they need a family member or friend to cover the repayments if you can’t.

Last December, Amigo customers, who ceased operations in 2020, were told to expect recover less than half interest and fees charged to them.

The guarantor lender has posted two different redress schemes online that outline the amount of compensation customers could get.

Last May, controversial credit giant Provident Financial withdrew from home loan after more than 140 years.

The lender cited “changing customer preferences” for its decision to stop pushing loans to people’s doors.

The companies under administration have not gone bankrupt. Their administrator will determine if part or all of the business can be saved and if a buyer can be found.

What happens next?

Loans at Home is no longer able to sell new loans.

However, all of its current loans remain in place, meaning borrowers have yet to make their repayments.

Grant Thornton is the administrator managing its collapse.

If you have money due to a complaint, the administrators will now handle it on behalf of the company.

However, in previous situations where a loan company went bankrupt, claimants did not receive the full amount owed to them.

For example, Wonga customers only received 4 pence for every pound they had to pay.

Customers with questions should contact SD Taylor Customer Service on 0800 0114490 or email customerservice@loansathome.co.uk.

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