Uncle Buck, a short term or payday lender, has gone into administration due to an action taken by the Financial Conduct Authority (FCA).
The FCA posted a notice today that Uncle Buck was “failing to meet the adequate resources Threshold Condition.” The severity of the concerns has compelled the FCA to stop Uncle Buck lending to customers.
To quote the FCA:
“Uncle Buck’s 2018 accounts were published in January 2019 and revealed significant growth in its loan book but a deteriorating financial position. In light of this, we reviewed the viability of Uncle Buck’s business model. Our findings from this, and the need to protect consumers, led us to ask Uncle Buck to consider all options to address the situation and to raise more capital. Despite attempting to do so, Uncle Buck was unable to raise the capital needed to continue in business.”
Harrisons Business Recovery and Insolvency have been appointed as administrators to manage a wind down of the firm. Customers are expected to continue to make repayments for all outstanding loans in the usual way.
The FCA said it will continue to supervise Uncle Buck and is in close contact with the administrators with regard to the fair treatment of customers.
Operating since 2004, Uncle Buck received FCA approval in 2016.