FIRSTPLUS Claimants Read THIS...Secured loans future hangs in the balance
Monday 14th July 2008
So Firstplus have withdrawn from the market as of the 9th of August. 300 jobs will be lost and Moneysupermarket.com face profit losses of up to 10%. This, we know. What is unclear the scale of the devastation that may occur in the wake of this move, as Firstplus’s business model was pushed to the limit by tighter lending criteria.
Some casualties have already emerged. Loanmakers, a master broker, saw shares plummet by 52% and gave a statement saying that Firstplus would have an “adverse” affect on their business. Loanmakers were a major player in the industry and have overnight been transformed into a business in serious trouble. However they will surely not be alone in feeling the effects of this decision by Barclaysowned Firstplus. Companies like Paragon will be put in a difficult position, as well as ocean finance and others. Some are deeming the move the “death of the secured loan market”, as it usually follows that when one big lender withdraws the others follow having a domino effect as they panic. What the industry needs to survive is lenders to stand strong and fight instead of becoming immediately unnerved.
Loans etc said: “Firstplus’s withdrawal is a hammer blow for the secured loan industry. Paragon will not absorb the massive volumes lost. The problem is more the reaction that will follow from other lenders and in particular the industry is holding its breath awaiting any reaction from GE.”
Secured loans future hangs in the balance- how can the industry fight back? - Loan Talk
Im not sure how this will affect any current or new claims etc.. IMHO I would get in Quick though, just in case..
Ian
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Originally Posted by Bog
