Rotherham loan broker enters administration

LOAN broker Norton Finance (UK) has entered administration but has promised to safeguard jobs.

LOAN brokers Norton Finance (UK) have safeguarded jobs after entering administration.

Accountants for the Rotherham-based specialists blamed the “challenging” economic climate.

The firm—founded in 1988 and part of the Norton Finance group—recorded a £3.2 million loss for the year ending April 2010.

Director Paul Stringer said the group had posted a healthy profit in the last accounting year, including the losses made by the broking company.

He added: “All employees have already been transferred into other group companies with no loss of jobs.

“The decision to restructure was made due to the retrospective redulation imposed by the Financial Services Authority regarding Payment Protection Insurance.

“Having previously approved our insurance sales process, the rules were changed, which resulted in an unaffordable liability for the broking company.”

Jimmy Saunders, of administrators Duff & Phelps, said: “They had a small team of employees who were processing PPI claims and they have all been transferred.

“The rest of the business is perfectly profitable. We have been in dialogue with the FSA and the Financial Services Compensation Scheme.”

Norton Finance said in a statement that it was with reluctance Norton Finance (UK) had closed.

It added: “We are pleased to announce that Norton Finance and Mortgages has acquired the business and all employee positions will be protected.”