After making unauthorized withdrawals from customer accounts; CFO Lending was called to court after being investigated for fraudulent activities, as well as, harassing their clients for debts to be paid. The company is now ordered to repay 34million to those that they had stolen money from. The Payday Loan Shark, which is the company that was at question, not only was removing money from peoples’ accounts without proper authorizations, they were also charging clients more than they were supposed to or what was agreed upon, as well as sending threatening letters and text messages conducting a business with little to zero professionalism at all. It is not known when these activities had started or how they had started taking place.
Despite all the money they were stealing from people, the company quickly ran out of cash leaving the payday loan company up for sale to those willing to buy it, and 26,400 victims waiting for their money still. These clients are not sure if they will ever see the money or not, and if they do see repayment from the company it is not expected to be within’ the near future. It is estimated that each client remaining on the company list to repay, they owe roughly each person about £138 each. Before running out of cash, the Payday Loan company had managed to pay 97,000 people. This is leaving a total of 123,400 as victims of the illegal activity from the company and billions charged and stolen from clients.
The owner Henry Smith, and his family had lived a very luxurious life style with holidays spent in some exotic places and traveling via private jet whenever any of them pleased. It is a wonder why they had not been under question sooner with how luxurious and open the family was on their riches. This had soon come to an end as Smith business was under investigation from the Financial Conduct Authority when they had found illegal and unprofessional wrongdoings in a catalogue. Smith and his wife seem to not be affected by the investigation at the time it was taking place when they were seen touring Italy and Switzerland in their Ferrari. But little did Smith know all the money he was spending was going to be repaid back to his victims
It is not for sure what involvement each employee was taking place in the activities. We don’t know if this was the act of certain individuals, if it was ordered from smith, or if it was a team effort to start the fraudulent activity. It is also not for sure if any of the clients will be placing harassment charges and making grieving reports against the company for the threatening letters and text but it is suspected that some of the victims have hired lawyers due to the fraud activities they’ve faced.
However, despite the illegal activity taken place from the company, they still have roughly 60,000 clients owing on their loans. The company is still trying to manage the books while they are looking for a buyer to take on the company. But the chances are that will not be happening anytime soon for Smith and his administration due to the matter of on top of owing 26,000 they also owe several millions of pounds to their creditors.
At the time, it’s unknown how many people were laid off due to the lack of funding from being able to pay back their debts. All that is known that some of the employees were kept on and that the sales and asses as well as what they are doing in terms of review their business strategy is strictly being kept confidential.