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Payday loan company shut down

Payday loan company shut down

Category: Loans

Updated: 17/01/2013
First Published: 09/08/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The online payday loan company, MCO Capital, has been forced to close down after the Office of Fair Trading (OFT) found it had failed to perform adequate money laundering checks and as a result had fallen victim to fraud.

In October 2010, just months after its launch, MCO Capital realised it had been conned out of more than £1.5 million by fraudsters pretending to be customers. The firm then tried to claim back the lost money by issuing letters to the people whose identities had been stolen.

David Fisher, the OFT's director of credit, said: "MCO's failure to put adequate procedures in place made it vulnerable to fraud.

"The way in which MCO then wrote to consumers to collect debts caused unnecessary distress and inconvenience to thousands of people."

MCO Capital has 28 days to appeal against its revoked consumer credit licence.

What next?

Guide to Payday Loans - this can be a very expensive way to borrow money. Make sure you've considered all the alternatives before taking out a payday loan.

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- this guide aims to give tips on how to get yourself debt free; or at the very least, point you in the direction of people who can help...

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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