High-cost short term lender (Payday lender) Uncle Buck has entered administration.
The Financial Conduct Authority (FCA) had concerns that Uncle Buck Finance was failing to meet the adequate resources Given the severity of these concerns, the FCA has required Uncle Buck to stop lending to customers. Following on from this action, the members of Uncle Buck have placed the firm into Administration.
Paul Boyle, David Clements and Anthony Murphy, insolvency practitioners of Harrisons Business Recovery and Insolvency have been appointed as administrators to manage the firm’s business and affairs. The FCA will continue to supervise Uncle Buck and is in close contact with the administrators with regard to the fair treatment of customers.
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 the FCA reviewed the viability of Uncle Buck’s business model. The findings from this, and the need to protect consumers, led the FCA 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.
The joint administrators will conduct an orderly wind-down of the business and seek to recover the assets of the Partnership for the benefit of its creditors.