Cash Finance Direct Limited (03173946): administration
- Status
- Administration ended
- Administration began
- 2013-10-01
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1996-03-15
- Location
- Manchester
- Industry
- 74909 Other professional, scientific and technical activities n.e.c.
Why it went into administration
- Regulatory change or action
From the administrators' statement
The Company was incorporated in 1996 and was founded by Mark Pickston (‘the Director’) operating as a finance broker, arranging personal unsecured loans via a premium rate telephone service charging customers to make contact with the Company
Customer details would be procured in bulk and then analysed and filtered in-house to produce sales leads for the call centre to utilise Income would be generated from commissions on sales, premium rate incoming telephone enquires from premium rate client enquiry tines and the sale of customer «information to third parties
The Company traded profitably for a number of years until a general downturn in the mortgage and lending sector caused by the financial crisis of 2008 when the Company began to experience trading difficuttes This was combined with a complaint investigation by its regulator which halted trading for a number of weeks in 2008 This Is believed to have had a senously detrimental effect on revenues and the Company's cash flow never fully recovered In addition, the Company expenenced nsing telephone service charges on the 400 premium rate lines it rented, combined with a maximum charge of £1 53 per minute call charge restnction set by Ofcom, which seriously reduced the Company's profit margin
Administrators' statement of proposals (2013-11-27) · Companies House register