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.
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