TMC thinking of legal action against Lloyds
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The Money Centre is considering legal action against Lloyds Banking Group for refusing to accept its applications.
The brokerage ceased trading on Friday and put all 22 staff and 18 contracted workers at risk of redundancy as it considered its future.
Mark Alexander, managing director at TMC, says it has been told by Lloyds group that the decision to refuse accepting business from it was taken because of its “quality of business”.
But Alexander says the lender would not give any further details.
He says he has spoken to a number of legal firms about the possibility of legal action over loss of income.
The specialist buy-to-let firm has introduced around £866,202,903 of completed buy-to-let mortgage business to the Lloyds brands over the last five years.
Alexander adds: “We have spoken to other lenders that have been more than happy with the quality of our business and arrears rates.”
A spokeswoman for Lloyds group would not say why it has stopped accepting cases and could only confirm that it was no longer accepting
new business from TMC.
Accounts filed at Companies House by TMC for the year ended March 2009 show it made a pre-tax loss of £5.3m.
But the directors were confident it would return to profit after diversifying into other areas such as insurance protection.
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