Written by: Paloma Kubiak
Payday lenders My Money Partner and Swift Sterling have been placed into receivership.
Grant Thornton UK LLP has been appointed a director of parent company MMP Financial Limited and all new lending activity has ceased.
A statement on both sites confirmed that all outstanding loans remain subject to the original terms agreed upon and borrowers are expected to continue making their payments.
He added that customers with complaints should continue to approach the company in administration. The complaints will then be evaluated and, if they are valid, “treated as unsecured creditors of the mass of the administration”.
MMP Financial Limited is the latest in a series of payday lenders to go bankrupt. Since the UK’s largest payday lender, Wonga, took office last year, QuickQuid, 247 Moneybox and Piggybank have also collapsed.
Peter Briffett, CEO of the financial wellness and income stream app Wagestream, said: “Losing a payday lender in a week might seem like good fortune, but losing three seems like something to celebrate.
“Payday lenders are falling like dominoes, with My Money Partner and Swift Sterling following Piggybank into oblivion within days.
“Consumers are firmly turning their backs on the businesses that have bled them dry for years, as they realize that there are more alternatives to high interest loans than ever before.
“Christmas has traditionally been a time when payday lenders see an opportunity to take money from vulnerable people, so it’s great to see consumers fight back. ”