The Cheque Centre - Withdrawal of Payday Loans Business

[ThinkOutsideTheBox]

Apologies if this has already been covered anywhere.

Certainly in my small corner of the North West, it appears that The Cheque Centre have ceased issuing payday loans.

Initially, in the wake of the adverse publicity last week notices were displayed in their store/office windows advising that "Installment Loans" were temporarily unavailable. These notices have now been replaced by notices advising that "Payday Loans" are no longer available from this store.

Can only be good news, I'm sure.

[ThinkOutsideTheBox]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Out and about in the wider area today, and this does seem to be the case with all outlets of The Cheque Centre.

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Well that is good news, will try find out something definitive.

They seem to have interim permission with FCA for the right bits

These people ? http://www.dailymail.co.uk/news/arti...-interest.html

Have asked Daily Mail and Cheque Centre on twitter, will ring them tmw. Thought there might have been something in the press considering all the stories about them and the FCA ''clampdown''

Pdl's have gone from their websites and twitter and Facebook activity stopped mid march time.... looks good.

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

24th March they had a change of directors.

John Richard Hackett and MR LESLIE JAMES STILLWELL took over as director of these companies

	-
CHEQUE CENTRES PROPERTIES LIMITED	Active - Accounts Filed	Director	24/03/2014	-	-
CNG HOLDINGS ENGLAND LIMITED	Active - Accounts Filed	Director	24/03/2014	-	-
CHEQUE CENTRES GROUP LIMITED	Active - Accounts Filed	Director	24/03/2014	-	-
THE LOAN STORE LIMITED	Active - Accounts Filed	Director	24/03/2014	-	-
CHEQUE CENTRES LIMITED	Active - Accounts Filed	Director	24/03/2014	-	-
CASH GENERATOR HOLDINGS LIMITED	Active - Accounts Filed	Director	24/03/2014	-	-
CASH GENERATOR LIMITED	Active - Accounts Filed	Director	24/03/2014	-

And set up AXCESS FINANCIAL EUROPE LIMITED

SC467268

With some other directors, and the same secretary. A couple are also directors of Cash Generator.

[ThinkOutsideTheBox]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

That's the ones Amethyst.

They were still advertising PDL's on their website before the weekend, so that's a recent change.

For reference, the stores I have seen the notices advertising the withdrawal of PDL services are - Huyton, Runcorn, Warrington, Widnes, St Helens.

Interesting re the change of Directors. Also the link with Cash Generator - I was aware they used to (perhaps still do?) operate the finance counters within some of the CG stores on some kind of concessionary basis, but hadn't realised the connection ran deeper than that.

As you say, would have expected something to have cropped up in the press, but I've not found anything either. Lets hope they come back confirming the good news.

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Well if you happen to pass one tmw feel free to take a photo of their window display lol xx

I was just re watching one of the daily mail undercover reporter videos.... they really were the kinds of PDL's that needed taking out of the market.

We'll have to keep our ears open for Axcess Financial ...

[ThinkOutsideTheBox]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Will be passing one first thing, so will take a quick snap.

Agreed, they are (were?) the worst kind of lender! Looking at Mr Stillwell's previous appointments, doesn't make pleasant reading. Seems he gets a kick out of ripping people off.

Will definitely be keeping an ear to the ground re. Axcess, got an unpleasant feeling that they may crop up on the radar in the not too distant...

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Indeed, seems they are expecting a lot of complaints judging by the job advertisements... http://www.totaljobs.com/JobSearch/J...JobSearch.aspx

"Having been in the market place for 20 years with a network of Retail stores, Axcess Europe is now going through a significant period of change which extends across every aspect of our business.''


Excellent re picture, will suss out the facts and get a story up, thank you.

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Ah ha someone tweeted a picture thanks to @CrickWales

[Drew]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

opcorn:

[No2PDLs]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

You cannot underestimate the damage that this has done to the company. According to the OFT, Payday Loan companies make money by forcing people to rollover, by not having this, they are automatically going to debt.

What is also VERY interesting is they were trying to launch Instalment Loans that would have fallen out of the remit of FCA, and clearly it has failed too, as they are also suspended.

It also appears they have a scapegoat too,

http://companycheck.co.uk/director/908625684/MR-JOHN-JOSEPH-KEENAN
http://uk.linkedin.com/pub/john-keenan/6a/4a4/932

John Keenan was the only UK based Director during the majority of 2013, but as of yesterday (14th April) was ousted from all the 8 companies.

http://companycheck.co.uk/company/SC182070
http://companycheck.co.uk/company/SC167596
http://companycheck.co.uk/company/SC230282
http://companycheck.co.uk/company/07444651
http://companycheck.co.uk/company/SC467268
http://companycheck.co.uk/company/SC230276
http://companycheck.co.uk/company/02258951
http://companycheck.co.uk/company/06473885

It should also be noted that John Hackett has also left the companies on the same date, he had only been employed since Oct, and a Director since March 2014, but never got around to updating his linkedin profile.
http://uk.linkedin.com/pub/john-hackett/18/2a2/95a

The new secretary is Emma Noble - again, never updated her employment from Tesco Bank.
http://uk.linkedin.com/in/emmanoble

The new MD is Andy Deller, again been there since Oct, never updated details.
http://uk.linkedin.com/pub/andy-deller/11/a34/a92?trk=pub-pbmap

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Update on this from the FCA - http://www.fca.org.uk/your-fca/docum...s-limited-vreq


APPLICATION FOR IMPOSITION OF REQUIREMENT
CHEQUE CENTRES LIMITED
Interim permission Ref No: 447202
To: The Financial Conduct Authority (the "FCA")
FAO: Nausicaa Delfas
Cheque Centres Limited ("CCL") as an authorised person with permission granted under Part
4A of the Financial Services and Markets Act 2000 (the "Act") hereby applies to the FCA for
the imposition of the requirements on its permission set out in the Schedule below:
SCHEDULE
1. General

i. On 1 April 2014, the FCA took over the regulation of the consumer credit market
from the Office of Fair Trading ("OFT"). Prior to this, the OFT informed CCL that
it was not complying with the requirement of the Consumer Credit Act 1974,
and would not be able to comply with the requirements of the Act and the FCA's
Handbook from 1 April 2014.

ii. In particular, the OFT had serious concerns in relation to CCL's (i) assessment of
afford ability prior to granting payday loans to customers; (ii) handling of
customers in arrears; (iii) handling of vulnerable customers; and (iv) staff
incentive schemes.

iii. As a result, CCL has reviewed its business plan and strategy in relation to its
consumer lending and has decided to withdraw from selling single instalment loans, and has
decided to voluntarily apply for a requirement to be imposed on its Part 4A permission with
immediate effect.

iv. In addition, CCL has voluntarily suspended consumer lending activity (instalment
loans and pawn-broking) and its outbound collection calls to allow it to make all
the necessary changes to its policies, procedures and staff incentive schemes to
ensure that all of its products are sold in compliance with the FCA's
requirements. In addition, all staff are being re-trained and CCL will certify that
they meet the necessary regulatory standards. This process is likely to be
completed by the end of May 2014. At this point, Mr Andrew Deller, CCL's
European Managing Director, will personally attest to the FCA that CCL's
products will be sold, and debts will be collected, in compliance with FCA
requirements. At this point in time, the FCA will permit CCL to restart consumer
lending and collections activities.

v. CCL will also be required to appoint an independent skilled person under section
166 of the Act at a date to be determined by the FCA to assess the effectiveness
of CCL's controls in achieving fair outcomes for customers, including but not
limited to performing outcomes testing of both lending decisions and collections
activities since the implementation of the revised policies and procedures.

2. Requirement

i. CCL will permanently cease selling single instalment loans.

[No2PDLs]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

Interesting level of detail, Amethyst.

Is it public knowledge what the OFT's concerns were, as it seems a very drastic action to take? Is the letter that was written to Cheque Centre available?

It has the potential to be the next PPI claims, imo, especially if it is over sales technique.

[Amethyst]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

''Prior to this, the OFT informed CCL that
it was not complying with the requirement of the Consumer Credit Act 1974,
and would not be able to comply with the requirements of the Act and the FCA's
Handbook from 1 April 2014.''

We can only look at the comsumer credit act breaches (and other legal breaches) for potential claims as opposed to the FCA rules.

So....

(i) assessment of afford ability prior to granting payday loans to customers; 55B Assessment of creditworthiness

(ii) handling of customers in arrears;

(iii) handling of vulnerable customers;

(iv) staff incentive schemes.



Possible other matters that may apply from the OFT initial investigations

14 lenders did not allow consumers to opt out of having their personal details passed to third parties, contrary to the Data Protection Act 1998
13 lenders were not fully compliant with the Electronic Commerce (EC Directive) Regulations 2002, for example by failing to include a geographical address, contact details or licence number on websites
7 lenders did not allow consumers to opt out from receiving electronic marketing messages, contrary to the requirements of the Privacy and Electronic Communications (EC Directive) Regulations 2003.

1. The changes Cheque Centres Limited has agreed with the FCA are set out in a Voluntary Requirement (VREQ).
2. The skilled person will be appointed under section 166 of the Financial Services and Markets Act as amended by the 2012 Act.

Also presumably a number of 'fit and proper person' issues regards the consumer credit licence.

[tracksuitbarry]

Re: The Cheque Centre - Withdrawal of Payday Loans Business

I used to work for Cheque Centre during the boom-time of the payday loans, in a branch in the North. Quite possibly the worst job I've ever had. I left just as the FCA regulation started to come in.

All the stories are true, even the ones in the Daily Mail. Staff bonuses were directly tied to number of loans you signed up over your target. If a branch failed to sign up a loan they were required to attend a conference call at 8.30 the next morning explaining why they didn't sign one up (normal working day started 9am). The worst performing shop each month would lead to disciplinary warnings for the branch manager.

Debt collection was along the lines of "you can call as many times as you want, just don't speak to them more than three times a day" - debtors were contacted on any number they had given, be it theirs, family, friends, work, etc. Accounts were swiped six times a day.

Our area manager used to send emails out to shops during the day asking if we were registering loans or on our way to the Jobcentre to look for a new job.

Staff were actually sacked for refusing to lend to customers (who were drunk, mentally incapable, already in crippling debt, etc), disciplined for ignoring direct management orders and stifling business.

Credit checks were Experian's most basic details check, checking that the name and address provided by the customer were correct, no verification was done on the actual customer stood in front of you, just that the details were correct. Staff were encouraged to complete applications as quickly as possible so the customers didnt have time to change their minds.

There's loads more stories about the company and its practices, but I've probably bored you all enough. Staff at all Cheque Centre branches are facing crunch talks over the next 48 hours about mass staff redundancies and shop closures. I feel for my former colleagues, but won't be sorry to see the back of the company.

To clear up - Axcess Financial are the US owners of the Cheque Centres Group. Axcess Financial Europe is another arm of the US based company.