A Responsible Finance Provider (RFP) is set to be wound down after Duff & Phelps was appointed as administrators.
Midlands Community Finance was one of the first RFP in the East Midlands when it was set up in 2003. Midlands Community Finance was set up to make loans to financially excluded individuals and businesses that could not access affordable credit from mainstream banks and building societies. A key aim of the business was to reduce the burden of debt and high-interest charges faced by low-income households and provide an alternative source of credit to the cheque cashers, high-cost door-step providers, and illegal money lenders.
Ben Wiles, Duff & Phelps, said: “Midlands Community Finance was an independent, not-for-profit business that existed to bring together public and private funding to provide affordable loans to reduce social and financial exclusion. Since it was established the business has lent over £7m to the local community and played a valuable role within it. However, the business has now run its course and we have been appointed by the board of Midlands Community Finance to assist with the final wind down through either monitoring of the collection process or the sale of the loan book itself to another RFP.”