An Essex-based payday lender that charged customers 1% interest per day has gone into administration.
Money Republic Limited claimed to offer customers lower interest rates than the typically high APR rates associated with payday lenders, and longer repayment periods without any hidden charges.
But the Basildon-based business went into administration on 29 January this year, with Alex Cadwallader and Neil Bennett of Leonard Curtis appointed to handle the case.
It follows a deficit between the firm’s assets and liabilities which was revealed in abbreviated accounts filed by the company to the year ending December 2012.
As of the end of 2012, Money Republic Limited had fixed assets of £224,136 and was owed £36,395 by its debtors.
However, at the same time the business also owed its creditors £43, 588 due in 2013, and £590, 000 after 2013, and had made a provision for liabilities of £71,300 which left a deficit of £289,539 between what was owed by debtors and what it owed to creditors.
Leonard Curtis has been contacted for comment and this story will be updated should the administrators decide to contribute.
By Alex Cardno
Hear more on this in the Alternative Lending debate at this year’s Credit Summit, taking place at the QEII conference centre in London on 3 April. For more details, visit http://www.creditsummit.co.uk/categories/details/2/alternative-lending-conference