The firm has not appointed administrators but is believed to be looking at its options and working to protect its assets and pay creditors.
In May Leadbay’s parent company, Add Momentum Holdings joined forces with the All About Group, creating the largest financial services lead generation company in the country.
The combined brands, which traded as Leadbay Media Group, supplied advisers with more than 60,000 leads a month.
Leadbay Media Group is headed up by Rob Ridge, with Grant Stevens, managing director of Leadbay.
Jerry Figueroa-Lee, director of the Mortgage Warehouse had been chasing £420 from Leadbay since September but with no success.
But after being contacted by Mortgage Strategy last month Leadbay paid Figueroa-Lee in full within the hour.
He says: “It is difficult for everyone in the mortgage market at the moment with brokers trying to scrape a living.”
Kevin Friend from Sitefinders.co.uk says that long gone are the days when £300 per enquiry for a sub-prime remortgage was paid.
He says: “In my experience during 2010, in particular, I would say that I have seen Leadbay drive down the price of customer enquiries (leads) without realising the true customer value. Any major player in a sector will have an impact on price in a market.
“I believe we will now see a more stable pricing structure, understanding that enquiries from consumers for mortgages are often valuable as future clients, or in other areas such as debt advice or compensation claims for mis-sold products.”
Friend adds that the market share Leadbay in the lead generation market has is “significant” and that it would be interesting to see what impact it has on the remaining lead providers left in the market.