Cattles suspends lending through Welcome finance

[PGH7447]

http://www.consumeractiongroup.co.uk/forum/bank-charges-finance-industry/185756-cattles-suspends-new-lending.html#post1999485

[cerberusalert]

The board has now appointed Deloitte

 

Well for a firm of auditors you would have thought they would have chosen a better name other than an anagram of do little.

[sillygirl1]

Spotted on Credit Today and posted separately.....

 

Credit Today online

 

Good news indeed!

[cashins]

No suprise, their auditors refused to sign their accounts and insisted on a more realistic treatment of bad debt.

 

This will probably leave them with a £100 million 'black hole'.

 

Cattles are not a bank, (at least the FSA saw through that one!), therefor will not qualify for goverment assisitance. Apparently though the are lobbying to be included in the scheme and would you believe it seems they may well have the support of the big banks.

 

Frankly, they could ot give a damn about Cattles other than, if Cattles go under, they fear they may come under pressure to provide sub prime facilities so as to fill the gap. They do not want to go there.

 

david

[JonCris]

That's because Lloyds & Barclays are the backers of Cattle;)

[PGH7447]

Cattles warns on profits and suspends directors - Times Online

 

UPdated today 3 march

 

Cattles warns on profits and suspends directors

 

Cattles, the consumer loans group, this morning issued its second profits warning in less than a fortnight as it suspended a number of key executives.

The company, based in Birstall, West Yorkshire, took the move after uncovering a “breakdown” in its internal controls.

Cattles said that it was not yet possible to quantify the effect on its results, but admitted that pre-tax profits for 2008 were now likely to be “substantially” lower than its expectations.

The company, which has been trying to refinance a £500 million debt facility, said that it would now have to enter into discussions with its banks and the bondholders.

 

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How Sad never mind

[sam614]

shame

[PGH7447]

BBC NEWS | Business | Problems mount at sub-prime firm

[bottomburp]

Cattles warns on profits and suspends directors - Times Online

 

Cattles, the consumer loans group, this morning issued its second profits warning in less than a fortnight as it suspended a number of key executives.

The company, based in Birstall, West Yorkshire, took the move after uncovering a “breakdown” in its internal controls.

Cattles said that it was not yet possible to quantify the effect on its results, but admitted that pre-tax profits for 2008 were now likely to be “substantially” lower than its expectations.

The company, which has been trying to refinance a £500 million debt facility, said that it would now have to enter into discussions with its banks and the bondholders.

 

--------------

How Sad never mind

I was going to post this link but see you've got there first though I think they may have expanded the article since you posted...so here's the next bit

 

"Cattles, which last month said that it was delaying its annual results while it reviewed its provisions for bad loans, has suspended three senior executives at its Welcome Financial Services division — which accounts for most of its credit business.

John Blake, Welcome Financial’s managing director, Peter Miller, its finance director and Mick Belcher, the operations director, will remain suspended until the advisers Deloitte have completed the review.

Cattles said that, based on work carried out by Deloitte so far, it believed there had been a “breakdown in internal controls” which had resulted in its impairment policies being applied incorrectly.

In the meantime, David Postings, the chief executive of Cattles, has taken direct management control of Welcome Financial — which, only last week, said that it had stopped taking on any new loan customers.

The company also revealed that the promotion of Robert East, its incoming finance director, had also been put on ice. James Corr, its retiring finance director, was asked last week to stay on and help with the review — but Cattles said yesterday that, due to ill health, he was currently unable to fulfil his duties.

It added: “In his absence, Mr East has agreed to take on Mr Corr’s responsibilities, although his appointment to the board remains deferred until further notice.”

Shares of Cattles, which has more than one million household customers, have fallen by more than 98 per cent this year. The company was forced in January to abandon its application for a banking licence — which would have helped it cut its dependence on wholesale funding by allowing it to take retail deposits."

 

 

Share price dropped by 98% eh? Hope they don't expect govt bail-out.

 

Does this mean that when they go bankrupt their debtors will be able to buy their debt for a small percentage of what is owed - rather than it being bought by a DCA?

[scott12345]

so what happens if stop trading? will the debtors there chacing be able to offer the auditor a low f/f settlement,cos theyll sell it for pennies

[loobyloo35]

Sub

[andie_303]

and what happens to people like me that are in the middle of court action against Welcome to reclaim £3000 in mis-selling of which I have already been told be a judge in a pre-hearing I have an excellent case? If Welcome goes to my case go to??

[loobyloo35]

so what happens with the current CCJ I am currently fighting? Is there a chance they will go down the pan? Can they take my CCJ with them?

[nish40]

Hopefully THE FUNDING CORPORATION will be following soon, along with ACF

[Angel104]

And what position will I be in? Last year I asked them to take the car back and so far they have ignored my request.So I don't know where this will leave me.

[creditcardmug]

This all looks like they are on their last legs:D, no one will be sorry to see them go, in particular their diabolical subdivisions, CL Finance, Lewis, Cohen:D

[itsamomentintime]

This all looks like they are on their last legs:D, no one will be sorry to see them go, in particular their diabolical subdivisions, CL Finance, Lewis, Cohen:D

 

didnt realise they were affiliated

 

what a shame for them all

[eeeezzzyy]

boo hoo....sorry i meant ha ha ha ha ha ha ha ha ha

[spartathisis]

shares closed in the region of 3p! no doubt someone will buy them from the administrators when they get called in.

[blondbomb09]

subbing

[eeeezzzyy]

I seriously think there is a massive financial black hole at the heart of Welcome...the next few weeks could prove to be very intresting !!!...Not forgetting of course the looming £500m errr loan repayment in June/July that Cattles face....oh dear i wonder if they took out ppi ???

[Adam69]

When they go under, I'll buy the company for a quid from the administrators- of course only the assets and rights but not obligations or debts- then I'll go in, make them all clear their desks, sell their building and assets and split the proceeds between all their victims.... sorry, "clients". We can then have all defaults removed at the CRAs, and as a DCA we can legitimately place adverts in national newspapers saying "We're a DCA and we're ****, visit the CAG and Reclaim The Right" without other DCAs having a leg to stand on.

 

If there's bad management, maybe I could seize directors' assets under some sort of obscure negligence law. Would be very satisfying to turf them all out and give them a taste of their own medicine. Might need to organise a CAG coach to help remove them.

 

You deserve everything you get, twice. Enjoy- but not as much as we will, lowlifes.

[JonCris]

Considering their extortionate % rates where did the money go???

[eeeezzzyy]

...and that jonchris, is your million pound question ???, answers on a postcard to the usual address

[cashins]

Difficult to see how they can survive, at least in their present form.

 

When the auditors won't sign your accounts, (very bad news in itself). Suspension of directors, (Wrongdoing, or possibly scapegoats?), worthless shares and a BIG cash call coming over the horizon.

 

They will be sadly missed:lol:

 

David