Blue Motor Finance Limited (BMFL) has been placed into administration.
Simon Edel, Richard Barker and Alan Michael Hudson of Ernst & Young LLP have been appointed as joint administrators.
BMFL operated as a motor finance lender; the firm had been running at a loss for several years and faced significant compensation liabilities it could not meet. The administrators are now responsible for BMFL while it is in administration and will contact all affected customers.
BMFL is no longer offering lending. However, all outstanding loan agreements remain in place and will continue to be serviced by BMFL in the short term. BMFL remains liable for any compensation it owes, including under the FCA’s motor finance compensation scheme.
The FCA said “We are engaging with BMFL and the joint administrators to ensure the best outcomes for customers who are owed compensation.
“However, customers are unlikely to receive all the money they’re owed. We know this will be disappointing. Having become aware that BMFL was in financial difficulty, we have worked to make sure that the firm’s decisions secured the best outcome for redress consumers. Alternative options would have reduced the likelihood of any redress being paid.”
All BMFL customers are asked to remain alert to the possibility of fraud. If customers get an unexpected phone call from someone claiming to be from BMFL, the joint administrators or the FCA, end the call and contact the relevant party directly.
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