Brokerage could leave liabilities of over £7m

Carrington Carr Home Finance, which appointed an administrator on March 20, could leave liabilities in excess of £7m, according to its latest accounts.

The brokerage, a subsidiary of Carrington Carr Holdings, has blamed legacy claims with respect to the alleged mis-selling of payment protection insurance for its demise.

Carrington Carr Home Finance’s latest accounts, which were filed on March 21 for the year ending December 31 2011, show it had a deficit on shareholders’ funds of £9.5m and net liabilities of £1.9m.

The accounts say: “Much of the deficit is caused by provisions in respect of potential clawbacks and complaints which total £7,614,957.”

The accounts add that although £7.6m is the company’s best estimate, the level of cancelled policies and complaints that will materialise remains uncertain.

But the accounts show that Carrington Carr Holdings, which is still trading, was helping it meet its liabilities by advancing funds to it.

Two former directors of Carrington Carr Home Finance – Ian Francis and Andrew Townsend – now operate Platinum Life Solutions, which is registered at the same address as Carrington Carr Holdings.

Ian Francis, head of group risk at Carrington Carr Holdings, says as administrator Deloitte is still reviewing the subsidiary’s liabilities he cannot comment on what the final tally will be.

He says Platinum Life Solutions is focussed on protection planning while Carrington Carr Home Finance concentrated on mortgage broking.

Other companies in the group are not affected and there have been no redundancies as a result of an administrator being appointed.