CFO Lending Limited - In Administration - 6 April 2017

CFO Lending Limited – In Administration
 
We, Paul Boyle and David Clements of Harrisons Business Recovery and Insolvency Limited, were appointed Joint Administrators of CFO Lending Limited (‘the Company’) on 6 April 2017 at 11.40am The appointment was made by the directors of the Company pursuant to Paragraph 22 of Schedule B1 of the Insolvency Act 1986 and was filed at The High Court of Justice Leeds District Registry.
 
We can confirm that the Financial Conduct Authority (FCA) has consented to our appointment as Administrators. The purpose of this document is to provide clients and creditors with an outline of the current position, to explain what we intend to do as regards the Administration and provide details of what information we require.
 
Our role as Joint Administrators is two-fold. The first objective is to protect the interests of creditors generally, including consumer creditors. Second, we wish to maximise realisations from the assets of the Company, which may assist towards achieving the first objective. We can confirm that we are working closely with the FCA to achieve both of these objectives and will to do so.
 
The principal asset in this Administration relates to the outstanding loans repayable to the Company (the Loan Book) from consumer borrowers. The Company offered two types of loan: ones often described as ‘payday’ loans and, to a smaller extent, guaranteed loans. 
 
If you have an outstanding loan with CFO Lending Limited
 
If you are aware that you owe money to the Company it is very important that you keep paying in order to settle the amount you owe and avoid us having to instigate legal proceedings against you.
 
Please continue to pay as normal, whether that be through standing order, direct debit or card payments. If you have any queries whatsoever in this regard, please email CFOLending@harrisons.uk.com
 
If you are struggling with your debts, there are free debt advice services which can help you. You can find out more on the Money Advice Service website.
 
Communication & Updates
 
We recognise that consumer creditors and trade/expense creditors will wish to be kept abreast of what is happening in the Administration. In an effort to reach creditors as quickly and efficiently as possible we will provide regular updates on progress via our website, details of which are provided below.
 
While we have included details of a dedicated telephone line below, calls will be handled by an external call centre acting on behalf of the Administrators. The call handlers will not be able to answer any specific queries in relation to individual accounts and will only be able to provide the same information that is available on the website. Call volumes may be high so you may find it easier and quicker to get the information you need from the website.
 
Details of the website together with login details where regular updates can be accessed is below, along with the dedicated telephone number and email account: 
 
Nature  Link
Harrisons Website – Dedicated CFO webpage www.harrisons.uk.com/cfo-lending 
Harrisons Website – General Case News Section www.harrisons.uk.com/news
Dedicated email account CFOLending@harrisons.uk.com 
Harrisons dedicated telephone number for this case 0161 850 9912
 
 
Claiming as a Consumer Creditor
 
Following an investigation and consultation between the Company and the FCA there are a number of clients and former clients who are owed money from the Company by way of redress. We understand that the Company has previously notified all clients and former clients who are affected. 
 
We have been informed by the Company that approximately 26,400 clients and former clients are owed varying sums from the Company which, including interest, totals approximately £3.6 million. Following our appointment as Administrators we have sought to email all clients and former clients who are affected, including details of the amount due to them according to the Company’s records.
 
If you believe that you are owed money by the Company but you have not received an email informing you of the Administration proceedings then please email CFOLending@harrisons.uk.com. Please provide your full name and your account/reference numbers so that we can identify you in the Company’s records and update our records if applicable. While not essential, it would be helpful if you could also include any information or documentation that you are relying on to prove your claim.
 
Unfortunately, we do not currently envisage that there will be sufficient funds to enable the payment of a dividend to unsecured creditors. We would, however, urge you to periodically review our website for updates in case that position changes. 
 
Claims of £1,000 or less
 
If the Company owes you £1,000 or less (including any VAT) and you agree with the amount shown in the Company’s records, then you do not have to submit any evidence to prove your claim – essentially, if you are in agreement with the claim amount provided to you then you do not have to do anything.
 
As stated above, we do not currently envisage that there will be sufficient funds to enable the payment of a dividend to unsecured creditors but if sufficient funds become available unsecured creditors will receive formal notice from us advising that they will be entitled to a dividend without proving their claim.
 
Claims over £1,000
 
If the Company owes you more than £1,000 (including any VAT) then you will be required to submit a proof of debt to us to enable you to rank for a dividend. 
 
As stated above, we do not currently envisage that there will be sufficient funds to enable the payment of a dividend to unsecured creditors. If sufficient funds become available to allow a dividend to unsecured creditors then they will receive formal notice from us advising that they are required to submit a proof of debt claim before we can process any dividend to them.
 
Claim Forms & Decision Procedures
 
Irrespective of the amount of a claim, if a creditor wishes to participate in any decision procedures during the Administration they will need to submit a proof of debt. We will ensure that creditors are given good notice ahead of any decision procedure deadline so that they will have a reasonable amount of time to complete and return their proof of debt claim should they wish to be included in the decision procedure.
 
If a creditor wishes to submit a proof of debt claim, a blank form is available from the secure login area of our website, which can be accessed via www.harrisons.uk.com/cfo-lending using the username and password that has been sent to them by email. 
 
Claiming as a Trade/Expense Creditor
 
If you are a trade/expense creditor of the Company you should have received postal notification from us regarding our appointment as Administrators. We trust that the information provided on our letter to you and in the dedicated CFO Lending Limited section of our website (accessed using the login details provided on our letter to you) is self-explanatory. If you are a trade/expense creditor and have not received postal notification of our appointment or if you have any queries please email CFOLending@harrisons.uk.com and one of our team will be in touch with you.
 
Realisation of Assets
 
We have a duty as Administrators to maximise realisations in the administration estate. We are currently exploring a number of avenues as to how this can be achieved and are in the process of discussing and negotiating with a small number of potential interested parties. At this stage it remains open as to what the overall strategy will be for achieving maximum realisations from the Company’s assets, which consist of the Loan Book and the database of information held by the Company.
 
To ensure creditors are kept fully informed regarding the process, we will endeavor to provide updates of any material developments in this regard on both the news section of our website and the bespoke CFO Lending Limited section, which can be accessed using the link and login details provided above. 
 
In any event, we will include a full update in relation to asset realisations in our Administrators’ Proposals Report, which we are required to produce within the first eight weeks of our appointment. This will be made available for viewing and downloading on our website along with other case documents, as outlined above.
 
Press Enquiries
 
If you are a member of the press or are seeking a press release please contact Jonathan Moon at jonathanmoon@harrisons.uk.com, who will ensure that your query is passed on to the relevant person. We anticipate posting a press release to our website in due course. 
 
Individual Enquiries
 
We anticipate a high volume of enquiries on this matter because of the number of clients who are owed redress amounts and those who have outstanding loan balances to be repaid to the Company. We have therefore instructed an external call centre to handle all incoming calls. The call centre will not be able to answer any specific queries in relation to individual accounts and will be able to provide only the same information that is included in this update and any subsequent website updates.
 
We have therefore provided answers to questions that are most frequently asked in these circumstances. We will also ensure regular updates are posted to our website in respect of any developments in the Administration generally or more specifically should recurring questions not covered in this update come to light. 
 
FAQs
 
INFORMATION FOR CLIENTS
 
 
I am a client with an outstanding loan due to CFO Lending Limited, what shall I do now?
 
The Administration does not write off this debt. You still owe this money to the Company and should continue to make payments as previously arranged.
 
If you have any queries in this regard please email CFOLending@harrisons.uk.com immediately and one of our team will be in touch with you.
 
If you are struggling with your debts, there are free debt advice services which can help you. You can find out more on the Money Advice Service website.
 
I am a client and think I am owed money from the Company by way of redress, what should I do?
 
The Company should have already been in contact with you advising that you are owed money by way of redress. You should have also received an email following the Administration that includes your claim amount.
 
Please refer to the information above as to what you do depending on your claim amount.
 
If you believe you are owed money by the Company but have not received any notification from the Company or us, please email us at CFOLending@harrisons.uk.com and provide the following information:
 
a. Name
b. Address
c. Telephone number
d. Email address 
e. Total amount you believe you are owed
f. Full details and supporting information setting out why you think you are owed the money
 
We will reconcile the information provided by clients with that provided by the Company for any changes in details and claim amounts.
 
When will I hear from the Joint Administrators?
 
All clients and consumer creditors should have received notification of our appointment by email. 
 
We will also advertise our appointment in the London Gazette as prescribed by law.
 
In any event, we are obliged to prepare a report of the proceedings and our actions within eight weeks of our appointment. This will be prior to 15 June 2017 and will be uploaded directly to the secure dedicated CFO Lending Limited section of our website, which can be accessed using the login details provided to you in our correspondence.
 
How do I know that you have received the email I sent you?
 
We would suggest that you request a ‘read receipt’. 
 
Why are you not replying to my email or telephone messages?
 
As a result of the volume of calls and messages we are unlikely to be able to address each enquiry individually. However, all emails will be reviewed and the website will be updated with points that are being repeatedly raised. 
 
I am going to telephone you anyway.
 
While we have included details of a dedicated telephone line below, it will be staffed by an external call centre acting on behalf of the Administrators. The call handlers will not be able to answer any specific queries in relation to individual accounts and will only be able to provide the same information that is available from the website and these FAQs. Call volumes may be high so you may find it easier and quicker to get the information you need from the website. We thank you for your patience. 
 
What is a Joint Administrator?
 
We as Joint Administrators are individuals who are suitably qualified to manage this organisation. In this case the Company has reached a point where it is not certain that it has sufficient funds to pay all of its liabilities. We are licensed insolvency practitioners who have been appointed with the consent of the FCA. 
 
Ensuring compliance with the Financial Conduct Authority Requests
 
We have been requested to inform clients who may be in financial difficulty of the Money Advice Service, which is set up by the UK Government to provide free and impartial money advice. The link for the website is www.moneyadviceservice.org.uk/en
 
Information for Trade Creditors 
 
I am a trade creditor, what shall I do now?
 
In the first instance please await our standard notification which has been sent to you via post. If you wish to address the matter immediately please send your details to CFOLending@harrisons.uk.com. Please state your company name in the title of your email and provide the following information: 
 
a. Name
b. Address
c. Telephone number
d. Email address
e. Total amount outstanding and attach copy invoices and purchase orders if available 
 
I have a Retention of Title Claim 
 
Please email us at CFOLending@harrisons.uk.com and in the subject heading state ‘ROT – [Your Company Name]’. We will send you a retention of title claim form by return and your matter will be assigned to a member of our staff who will contact you about it. 
 
When will I hear from the Joint Administrators again?
 
All creditors should have received notification of our appointment by post.
 
We will also advertise our appointment in the London Gazette as prescribed by law.
 
In any event we are obliged to prepare a report of the proceedings and our actions within eight weeks of our appointment. This will be prior to 15 June 2017 and will be uploaded directly to the secure, dedicated CFO Lending Limited section of our website, which can be accessed using the login details provided to you in our correspondence.
 
What are the prospects of a distribution to unsecured Creditors? 
 
Based on current information it is not anticipated that there will be sufficient funds available to make a distribution to unsecured creditors in this matter.
 
How do I know that you have received the email I sent you?
 
We would suggest that you request a ‘read receipt’. 
 
Why are you not replying to my email or telephone messages?
 
As a result of the volume of calls and messages we are unable to address each enquiry individually. However all emails will be reviewed and this page will be updated with points that are being repeatedly raised. 
 
I am going to telephone you anyway.
 
While we have included details of a dedicated telephone line below, it will be staffed by an external call centre acting on behalf of the Administrators. The call handlers will not be able to answer any specific queries in relation to individual accounts and will only be able to provide the same information that is available from the website and these FAQs. Call volumes may be high so you may find it easier and quicker to get the information you need from the website. We thank you for your patience. 
 
Legal Notices
 
The Joint Administrators, Paul Boyle and David Clements have been appointed by the directors pursuant to Paragraph 22 of Schedule B1 of the Insolvency Act 1986.
 
Paul Boyle is authorised to act as a licensed Insolvency Practitioner by the Insolvency Practitioners Association and David Clements is authorised to act as a licensed Insolvency Practitioner by the Institute of Chartered Accountants in England and Wales, under numbers 008897 and 008765 respectively.
 
The Administrators act as agents of the Company without personal liability.