Stockport loan broking business shut down

A LOAN broking business based in Stockport which asked clients for upfront payments to arrange loans has been wound up in the public interest.

The company, NIZ Financial (UK) Ltd, which used the trading style ‘Bentley Cooper’, traded for just under two years. It was initially set up by Noman Nasrullah, but he resigned on June 1 2010 and was replaced as a director by Ikhlaq Iqbal.

A spokesman for the Insolvency Service said that its Companies Investigation Branch began investigating the business and a sister company BentleyCooper Ltd in July last year following complaints about its service.

Its investigation suggested that the company should be wound up on public interest grounds as it “traded in a manner that is misleading and contrary to the public interest”.

In particular, it found that clients were misled about the brokerage fees they were charged for loan applications and that the number of clients who qualified for loans was very low.

The businesses also appeared to breach Consumer Credit Act regulations which entitle consumers to a refund of the fees paid to a credit broker if no agreement is signed within six months of an introduction being made.

The spokesman said that four similar companies associated with both Mr Nasrullah and Mr Iqbal had already been wound up in the public interest in May last year. They were Easysteploans (UK), Theloansupermarket.co.uk, Carter & Carter (Management) and T.L.G Loans.

The Secretary of State for Business, Innovation & Skills presented petitions to wind up both NIZ Financial (UK) and Bentleycooper in February.

Both firms were wound up following a hearing in Manchester last month and the Official Receiver has now been appointed as liquidator.