Magic Loans goes into liquidation
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Secured loan master broker Magic Loans has gone into liquidation.
Angelo Trapasso, director of the firm says the brokerage was heavily impacted by the withdrawal of secured lender Welcome Finance in January.
Loandistributor.co.uk revealed this morning that 1st Stop Group has put its credit brokerage 1st Stop Finance into administration also as a result of Welcome Finance ceasing lending.
Trapasso says: “Welcome stopping lending was the killer for us, that along with Paragon cutting down its lending and mounting Payment Protection Insurance claims meant we could no longer continue.
“Even if we had been able to make any money we would have had to pay it all to ambulance chasers.”
Trapasso says it paid all its 20 staff before closing down and left the market with money in the bank.
Source:
Loan Distributor
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Readers' comments (13)
Anonymous | 9 Mar 2010 2:13 pm
We have just had a call from a broker, who passed us on to magic loans, saying we can get the loan, but must pay a setting up fee, should we decline?
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john mcvicar | 13 Mar 2010 1:26 pm
had the same but I payed the setup cost to magic loans but now cant get a hold of them and they took the money from my bank on friday 12/3/2010 so what can I do
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Anonymous | 19 Mar 2010 11:40 am
yeah we had the same but yesterday 18.3.10, who was ur broker l would be interested 2 know if we use the same one, anyone have any idea's??
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Anonymous | 19 Mar 2010 2:57 pm
You can contact them here: http://www.magicfinancegroup.com/
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helenbrettle83@hotmail.co.uk | 21 Mar 2010 1:06 am
email me back for advice.
The same happened to me in Jan. I paid £50 i recieved nothing and could not get in touch with any one.
Since then I have contacted the FSA who gave me advice.
Email me foe ino on what they suggested.
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Anne Dickson | 6 Apr 2010 10:04 am
I have just been checking up on Magic Loans too as cannot get in touch with anyone. I paid £69.99 on the 23rd March, recieved papers out to sign and sent back same day in hope of everything being processed before easter break.
Having read peoples comments here now I am really conserned to what to do next???? HELP
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Jessica | 12 Apr 2010 2:34 pm
Ohhh No.
I paid £49.99, and got told my loan had been accepted by Magic Loans and the paperwork would be out to me in the next 2 days. I said "have a definitely got the loan?"
the operator replied, "yes, all you have to do is sign the contract and send it back".
I was a bit dubious BEFORE i read this...
Anyone find out it was all okay?
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Anonymous | 22 Apr 2010 5:41 pm
Just had a call from Magic Loans. When I told them I would not pay anything up front they just put the phone down on me!
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Lisa Newman | 24 Jun 2010 10:57 am
My daughter has just had the same happen, she paid £70.00 and now nothing cant get hold of them. Not sure how much it will help, but the Financial Ombudsman are the only hope
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WENDY | 5 Jan 2011 5:34 pm
i to fell into the trap i paid a fee 69.99 promised a loan of 2000 never got paper work or loan thanks magic
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