The Toothfairy Empire Crumbles as Web Loans Processing Enters Administration

Web Loans Processing Enters Administration

Behind closed doors, problems were mounting throughout 2013 for one of the big name payday lenders within the industry. Toothfairy Finance is the most recognisable brand belonging to Web Loans Processing Ltd, but there have been many more that has made a difference to the level of market share controlled by them. We have covered the most popular ones previously here that has included Community Payday, Easy Finance Club, NextCredit and of course Toothfairy. On the High Court note there was 16 owned brands listed, but you can bet that there are much more of these in ownership. Credit on Demand is one such example that wasn’t listed.

Many trading websites were under developed or had been scrapped and so it was always difficult to keep track of them. The owner who was at one time known as CIM Technologies Ltd had already been ticked off from the OFT back in the year 2010 for using trading names other than those permitted by their Licence, as well as there being debt collection charge issues raised. When the lending brands were recently introduced here I did notice on some checks that there was a notice that applications were not being processed due to maintenance. I thought that this was just the cause of their systems being updated.

The Administration Order was made back on the 10th December 2013. When just visiting the site now, there was a notice (pictured) providing information on the Web Loans Processing administration. Owed money across the range of networked websites are now due to DHR Capital Ltd who have took control. Although previous OFT issues had occurred and negative media attention had been published, it did seem that positive steps were taken across the main established companies such as Toothfairy. They did have a habit of not disclosing full charges up front though. This would have been quickly rectified through membership with one of the big trade associations.

Elsewhere, their services were commonly open 7/7 days and you could select multiple repayment terms. Logins, SMS features etc were always added that made them a popular market choice. Just why did this administration occur? The true story is not clear, but financial problems did mount between September 2013 and just before Christmas. Money has been owed to investors and bridging loans were obtained, but they soon could not pay their debts. The OFT had also been playing close attention to them recently that appears to have been primarily due to their debt collection practices via Northern Debt Recoveries and Marshall Hoares Bailiffs. The rest is history.