Promise Finance goes into administration

Promise Finance became the latest victim of the credit crunch last week after it went into administration late last Friday evening, shedding up to 70 jobs in the process.

The Wolverhampton based operation decided to close its B2C operation due to worsening market conditions but will continue to operate in the B2B market.

Operating from Promise House in Wolverhampton, Promise employed over 200 people.

Promise will continue with its secured loan master brokerage, Promise Solutions, which includes its loan sourcing technology Promise Quote. In addition, other parts of the group, such as Promise Debt Solutions and Promise Home Information Packs are unaffected.

Promise also expects to grow its outsource contact centre facilities, having won two new contracts in the last month.

Steve Walker, group managing director at Promise, says:”The decision to close this part of the business was extremely tough and a huge shame for the people affected, but the current market conditions have dictated this as the only sensible course of action.

“We will remain in the secured loans sector focussing on a quality service provided by the best people.

“Promise will positively focus on its secured loan Master Broker activities and further consolidate its position as the market leading secured loan technology and packaging platform for the intermediary and IFA marketplace”

Walker adds: “Over the years we have built up a reputation for honest and fair dealing.

“I want to make it clear that the commissions due to brokers from Promise Solutions will be paid in full.

“We are fortunate that our diversification over recent years has now put us in a really strong position to move forward in a challenging market.

“There is huge opportunity for the distribution of loans within the mortgage intermediary market.

“It is ironic, however, that many mortgage intermediaries have not capitalised on this opportunity but we are firmly dedicated to the sector and see it as one of the few growth areas in secured loans for some time to come.

“Strategically the steps we have taken, whilst tough, make sense for the long term.”

Promise was founded in June 2003 to provide affordable finance to the consumers of the UK.