The clampdown on the guarantor loans industry has intensified after the City watchdog raised concerns at Non-Standard Finance.
Britain’s second biggest guarantor lender revealed yesterday that it was carrying out an in-depth review after a visit from the Financial Conduct Authority in March.
Non-Standard Finance said that the regulator had “examined a selection of customer files” at its guarantor loans business and that the watchdog had “raised a number of concerns regarding certain aspects of the operating procedures and processes at the division”.
The sub-prime lender said that it was working closely with the authority “to clarify the scope and scale of its concerns and to develop a possible redress methodology”.
It has paused plans for a fundraising after the watchdog’s intervention. Its shares, worth