Fri, 13 Dec 2013 | ADMINISTRATION
A payday lending firm which trading as Toothfairy Finance has entered administration.
The business, registered as Web Loans Processing Ltd, appointed Freddy Khalastchi and Martin John Atkins from Harris Lipman to process the administration. They were appointed on 28 November.
Toothfairy claims to provide “one simple product that is available to everyone over the age of 18”. The business provides loans of between £100 and £400, which are designed to be short-term due to the high rates of interest they accrue.
In early November, the company was subject to investigations by The Office of Fair Trading. The department ruled that the firm was employing “unsatisfactory” practices, and stated that it is not to impose “disproportionate” fees in future or demand “larger instalments” from clients that do not have the funds to pay them.
At the time, the firm's spokesman, Oliver Larholt, also the director of Northern Debt Recovery, told the Mirror that his business only lent “responsibly”, adding that just a minority of borrowers were hit with penalty fees.
Details about exactly what pushed the firm into administration are unclear, but the increasingly strict regulatory environment and a change in tide regarding public perception of pay day lenders could well have contributed.
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