High-cost, short-term lender Uncle Buck has called in administrators from Harrisons Business Recovery after the Financial Conduct Authority (FCA) required that it stop lending to customers.
Paul Boyle, David Clements and Tony Murphy of Harrisons Business Recovery were appointed administrators of the lender after it failed to meet the FCA’s adequate resources threshold condition.
The issues, which are historic, emerged in January 2019 when Uncle Buck published its 2018 accounts, revealing significant growth in its loan book but a deteriorating financial position.
As a result, the FCA reviewed the viability of Uncle Buck’s business model and asked it 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.
All existing loan agreements remain in place and will not be affected by the administration, the FCA said, although the firm is no longer able to issue new loans.