Require Immediate Support? Free Director Helpline: 0800 644 6080

Real Business Rescue

Free Director Helpline: 0800 644 6080

Advice for unregulated finance brokers facing financial penalties

Share:

Published:

Advice for unregulated finance brokers facing financial penalties

Unregulated finance brokers are finding themselves subject to increasing levels of legal action regarding deals they brokered many years ago. This type of litigation concerns the alleged mis-selling of a whole host of finance products, ranging from personal finance options such as bridging loans and mortgages, through to commercial borrowing including loans and asset-based lending.

UK’s number one for director advice

We handle more corporate insolvency appointments than any other UK firm; demonstrating our commitment to helping directors and business owners in financial distress.
The team are available now -  0800 644 6080

The scale of this is such that some believe this to have the potential of being the next Payment Protection Insurance (PPI) mis-selling scandal which saw banks having to pay out billions of pounds to customers who had signed up in these schemes.

background curve

Take Our Free 60 Second Test

Get an instant understanding of your:

  • Debt and Asset Position
  • Formal Insolvency Options
  • Next steps

Plus much more ...

Start The 60 Second Test
apps on mobile screen

What is the current situation?

The issue currently unfolding is that unregulated finance brokers have begun to see legal action being commenced against brokers in instances where irregularities are found in the original paperwork. The problem here is that these irregularities were common practice within the industry meaning a huge number of brokers could find themselves affected. For example, a noted irregularity is where the signature was given over a Skype call, for instance, rather than through more traditional means.

Recommended Broker

Solutions Based Funding Options

  • UK's Leading Business Funders
  • Free Brokerage Service
  • Full Market Access
Free Consultation Available

What does this mean for finance brokers and lenders?

If any discrepancies were found this would typically mean that the finance company, rather than the broker, would be responsible for providing any necessary compensation due to the customer.

However, it is common that a clause is written into many contracts of this nature between the lender and the broker which states that if there are any irregularities found then the finance company is within their right to take this up with the brokers to recoup their losses.

Unregulated brokers could potentially find themselves facing claims that collectively run into millions of pounds. On an individual level, this could push a broker to breaking point should the level of compensation demanded be too large for the company to deal with.

Can’t pay CBILS or Bounce Back Loan?

Don't worry - there are thousands of other company directors in the same position. If you are struggling to keep up with your Covid loan repayments, speak to a member of the Real Business Rescue team to discuss your options. It's Free & Confidential.
The team are available now -  0800 644 6080

What should you do if you are affected?

If you are an unregulated finance broker who is worried about an impending fine or penalty, the advice is the same we would give to any company experiencing financial difficulties which is to contact a business rescue expert as soon as possible. A licensed insolvency practitioner will be able to talk you through your current situation and explain the impact any impending fines are likely to have on your company’s financials.

We will be able to ascertain your company’s capacity for paying any compensation owed, and from there help you understand the options open to you and your company. This may involve a formal restructuring of your liabilities through a Company Voluntary Arrangement (CVA), information negotiations with creditors, or if the company is no longer a viable entity we can help facilitate an orderly wind down via a Creditors’ Voluntary Liquidation (CVL).

Call our team today to arrange a free no-obligation initial consultation with a licensed insolvency practitioner. With over 100 offices you are never far from expert help and advice.

reviews io logo

Real Business Rescue are here to help

Still unsure whether liquidation is right for your company? Don't worry, the experts at Real Business Rescue are here to help. Our licensed insolvency practitioners will take the time to understand the problems your company is facing before recommending the best course of action going forward based on your own unique circumstances.

  • UK’s Largest Liquidators
  • 100+ Offices Nationwide
  • 100% Confidential Advice
  • Supported 25,000+ Directors
Meet The Team
Team Of 4

Team of Qualified Experts

Trusted team of experts on hand to assist

Meet The Team
Rbr Accreditations Blue

Looking for immediate support?

Complete the below to get in touch

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY
10,000+ Tests Completed

Free 60 Second Test

For Ltd Company Directors

Get An Instant Understanding Of Your:

  • Debt and Asset Position
  • Director and Liability Review
  • Next Steps

Plus much more ...

Real Business Rescue Recommended
  • UK's leading business funders
  • Free Brokerage Service
  • Full Market Access
  • Over 30 years' experience
  • Strong relationships with HMRC
  • Support from start to finish
  • 10,000 potential buyers
  • 12,000+ Businesses Sold
  • 60+ Years Experience
Next Steps

We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.