The Office of Fair Trading has confirmed that it is investigating payday lender Web Loans Processing Limited (previously Toothfairy Finance Limited) and two associated debt collection firms, Marshall Hoares Bailiffs Ltd (previously Toothfairy Cheque Cashing Ltd) and Northern Debt Recovery Ltd.
Web Loans Processing Limited went into administration on 28 November 2013, and the consumer credit licences for Northern Debt Recovery Ltd and Marshall Hoares Bailiffs Ltd were surrendered by the companies, following a request by the OFT, and will formally terminate on 14 January 2014.
In October 2010, the OFT imposed Requirements on CIM Technologies Ltd, an associated company that at that time was trading as payday lender Toothfairy Finance Limited.
Web Loans Processing Limited – a sister company – subsequently took over the lending business. Following concerns about their business practices, including concerns raised by Citizens Advice, the OFT opened a formal investigation. The investigation included an inspection visit in October 2013.
David Fisher, senior director of Consumer Credit, said: “The OFT had serious concerns about the business activities of these firms, which we were actively investigating. If they had not surrendered their licences it was our intention to take steps to revoke them.
“The surrender of the licences means that the businesses may no longer operate as debt collectors. The lender is in administration and we will be taking steps to ensure any outstanding debts are collected legally and fairly.”
