Two Brighton payday loans businesses forced to close

Two payday loans businesses based in Brighton have been forced to close by the Office of Fair Trading (OFT).

B2B International UK and Loansdirect2u.com had offices in the Brighton Media Centre in Middle Street, Brighton.

They surrendered their licences two weeks ago on Friday 12 April after losing their appeals against the OFT decision at a tribunal.

The OFT revoked their licences after it found that Neil Evans, an associate of both companies, had convictions for offences involving violence and fraud.

Both companies offered cheque cashing and short-term loans at high rates of interest.

According to The Guardian, Loansdirect2u.com offered up to £500 for between 7 and 35 days at a typical annual percentage rate (APR) of 2,514 per cent.

Loansdirect2u.com customers faced a £10 charge for missing a repayment and a further £20 if the company called in debt collectors.

Applicants had to pay £3.99 up front which Loansdirect2u.com kept even if they were refused a loan.

David Fisher, the OFT’s senior director of consumer credit, said: “We will protect consumers against anyone who fails to disclose relevant information about criminal convictions on their licence applications.”