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Magic Loans goes into liquidation

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.

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  • Mrs Shirley Green 10th January 2012 at 3:54 pm

    I to took out a loan with Magic loans. Got all the paper work ect, ect, then they took £80 out of my account for set up fees. I got no offers of a loan or anything, so contacted them just before christmas to be told that I would get my money back inbetween christmas and the new year. Now I know why I cant get an answer from them. Is there anybody out there who can help me ?????

  • sandra taylor 29th November 2011 at 7:42 pm

    I paid £69.99 to Enhance Financial, got papers through and scanned them back. They have 1-7 days to contact me about the loan. They said I had been accepted in principal. Will just wait and see.

  • christopher hetherington 5th April 2011 at 12:57 am

    for all the ppl that have been scammed through the charge up front trick,it happened to me and luckily i got my money back from loan centre .net but i also spoke to my bank who said i was covered by the debit card guarantee and if i could prove i tried to get in touch with firm for refund of money the bank would of refunded me under guarantee.speak to the bank and be kinda forceful also send the comany emails threating them with fsa etc.it worked for me.

  • WENDY 5th January 2011 at 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

  • les wells 8th August 2010 at 10:52 am

    call the police give the there tel no and there ip of net work there on there get then magic when bust

  • Lisa Newman 24th June 2010 at 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

  • Lisa Newman 24th June 2010 at 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

  • Ian Williams 27th April 2010 at 2:10 pm

    I too got scammed from this site to the tune of £69.99 about a month ago and havent heard anything from them since!

  • Ian Williams 26th April 2010 at 8:33 pm

    Yep! i too got scammed paid 69.99 told i definitely had the 5k loan, just fill in the form and send it back, which i did, i havent heard from them since and cant get hold of them, a complete scam which they seem to be getting away with!!

  • Ian Williams 26th April 2010 at 6:37 pm

    Yep! i too got scammed paid 69.99 told i definitely had the 5k loan, just fill in the form and send it back, which i did, i havent heard from them since and cant get hold of them, a complete scam which they seem to be getting away with!!

  • Su 22nd April 2010 at 5:42 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!

  • Su 22nd April 2010 at 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!

  • Jessica 12th April 2010 at 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?

  • Anne Dickson 6th April 2010 at 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

  • donna 29th March 2010 at 4:56 pm

    A company called churchwood put me onto
    Magic (in my opinion just as Bad) Magic wanted £50 to start the process,thank god i did’nt pay it! I checked them out and found a forum with many displeased people. Many not receiving any paperwork, and the ones who did said the interest rate was not what they had been quoted over the phone. In some cases it had gone from 10% to somewhere around 80%! I also checked out the company who Magic said were the lenders (Enhance Financial Services) and they happened to be at the same address as Magic. Does this not suggest that they are the same company? if this is the case then Magic cannot be the middle man and should not be charging a brokerage fee. I strongley advise anyone to steer well clear.

  • helenbrettle83@hotmail.co.uk 21st March 2010 at 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.

  • Dave 19th March 2010 at 2:57 pm

    You can contact them here: http://www.magicfinancegroup.com/

  • Ian 19th March 2010 at 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??

  • john mcvicar 13th March 2010 at 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

  • lee hutcinson 10th March 2010 at 4:11 pm

    dont give them anything we were told we could hve a loan but needed to pay 69.99 for paperwork which you get back, after not hearing anything and ringing round we found out we have been scammed and havnt even got the loan

  • susan briscoe 9th March 2010 at 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?

  • bob 28th January 2010 at 11:50 am

    what a shame robdogs 12k taken over full 25yrs total 74k payback carnt wait 2 see them go bust and staff lose there jobs treet people lieke shit