FORMER HBOS chief executive James Crosby has reportedly reaped a windfall from the sale of a car finance firm in which he is a director.
Mr Crosby, who lives in Harrogate, was formally stripped of his knighthood at his own request last year following a scathing parliamentary report into the collapse of HBOS.
He also gave up 30 per cent of his £580,000-a-year pension, and stood down from his roles with Leeds Bradford Airport owner Bridgepoint and as a director of food group Compass.
Yesterday, Bradford-based credit lender Provident Financial revealed that it had agreed to buy car finance firm Moneybarn for £120m.
Mr Crosby is listed as one of the directors of Moneybarn in the most recent set of accounts filed at Companies House.
Yesterday a Provident Financial spokesman said they couldn’t confirm whether Mr Crosby was a shareholder in Moneybarn at the time of the sale.
According to accounts filed at Companies House by Moneybarn for the year ended December 31 2013, the directors who served during the year included JR Crosby.
In June last year, there was a “change of directors’ particulars” filing from Moneybarn which states that Sir James Robert Crosby, born on March 14 1956, had changed his name to Mr James Robert Crosby.
Moneybarn provides car finance to non-standard customers in the UK, operating mainly through brokers with additional distribution sourced through independent car dealers and from its website directly to customers.
The business offers secured car loans and cars are typically used for necessities such as travelling to work rather than for luxury or leisure.
Provident said the acquisition will broaden its product offering to the group’s target customer base and will create a third leg of earnings.
In a statement, Provident Financial said: “Moneybarn has a well regarded management team, led by Peter Minter, with significant experience and expertise. Following completion of the acquisition, the existing management team will be retained and will report directly to Peter Crook, group chief executive.
“The group intends to put in place appropriate retention and incentivisation arrangements to ensure a smooth transition, including a share incentive plan that will incorporate a performance element and, if achieved, will be satisfied by the issue of Provident Financial shares.”
Provident Financial plans to keep Moneybarn’s independent brand and locations following the acquisition.
Mr Crook said yesterday: “I am delighted that Provident Financial is able to announce the acquisition of Moneybarn, which is the market leader in the non-standard car finance market.
“I look forward to working with Peter Minter and his team to realise the significant growth opportunity in this market.”
Mr Crook said that Provident Financial had been looking at the motor finance space for some time, and decided to enter it through acquisition. Moneybarn, which is based in Rogate, West Sussex, has around 90 staff.