CATTLES application for Banking Licence delayed

[REST ON A SUNDAY]

"Cattles, the sub-prime and doorstep lender, has been forced to admit that its application for a banking licence from the Financial Services Authority (FSA) is "proceeding at a slower pace" than expected, after its shares sank more than 20 per cent today.

Shares in Cattles fell 22.3 per cent to 28.75p on speculation surrounding the lender's application for a banking licence.

Companies applying for a licence have to prove to the FSA that they have enough capital adequacy to qualify and in April this year Cattles raised a further £200 million through a heavily discounted rights issue to help it meet the regulator's demand.

The year before, Cattles tapped its investors for £133 million to fund its expansion.

 

 

As a bank, Cattles had been hoping it could draw in around £1 billion in retail saving deposits by 2010 to reduce its reliance on the wholesale funding market, where banks lend to each other and have all but frozen in the current climate.

 

Cattles is currently in talks with its lending banks, led by Royal Bank of Scotland, to renegotiate a £500 million credit line due to expire next July.

In today's statement, Cattles said it was "dealing with a number of requests for further information" from the FSA.

 

"Given the current banking environment and market conditions, the FSA is proposing more stringent tests for firms, particularly relating to liquidity and stress testing, on which the FSA has recently issued consultative papers," it said.

 

"As a result, Cattles' application is proceeding at a slower pace than the Company had previously anticipated."

 

A formal decision from the FSA on the licence application is expected by February 2009 at the latest. "

 

Cattles dives on bank licence delay - Times Online

Edited December 18, 2008 by REST ON A SUNDAY

[REST ON A SUNDAY]

the question is do you have any reason to believe cattles are not fit and proper persons to hold a banking licience?

[hillards]

I certainly wouldn't risk banking with them - imagine how they would mis-use clauses relating to taking money from your account to repay other accounts held by their company - when they can't get the facts right that the person they contact, from a DCA point of view, is the one with a debt, or that they have any right to collect such monies.

 

Where do we go to contest their application, on the grounds that they are not fit and proper, in my opinion.

[postggj]

how does a member of the public object to them getting a banking licence.

ime sure the relevent people would be very interested in my file.

i was just about to send it to the oft, hmrc etc

[blind-as-a-bat]

Didnt you say CL finance and HC sols where part of Cattles last night hillards?

If so thats enough for me to object if i could

[hillards]

Didnt you say CL finance and HC sols where part of Cattles last night hillards?

 

If so thats enough for me to object if i could

 

Yep - CL Finance (wonder if that is to denote Cattles/Lewis?) and the wonderful Howerd Cohen & Co are all within the Cattles group, as are Welcome Finance and all the trading names of the Lewis group. Cattles also had an office in Glasgow last I knew.

 

Not sure if HC in Cleckheaton are connected with, or are, the firm in Leeds of the same name but it came back linked.

 

So - would it then be Welcome giving out loans, financed by Cattles bank, to be chased by Lewis group under the CL Finance name, and letters from H Cohen to scare you into paying? OUCH!