Non-Standard Finance set to take 'first key step' in reaching certainty over extent of historic redress claims

Non-Standard Finance has announced the launch of a scheme which it describes as the “first key step” in reaching certainty as to the extent of its liability for historic redress claims.
By Greg Wright
Published 17th Mar 2023, 07:57 BST

Non-Standard Finance said the scheme, if successful, will pave the way for a capital raise which would restore the group's balance sheet, fund the partial payment of redress claims under the scheme and return Everyday Loans, its branch-based lending, to profitable trading.

In a statement, Non Standard Finance said: “Everyday Lending Limited, the wholly owned subsidiary of NSF which runs Everyday Loans and previously ran George Banco and Trust Two until they ceased new lending in November 2020, launches the scheme today through the issuance of the practice statement letter in relation to the scheme.”

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Under the scheme, £14m will be made available for payment to customers with valid redress claims and the Financial Ombudsman Service (FOS), in exchange for the release of the redress claims and the FOS fees in their entirety. Scheme creditors are estimated to receive between approximately 22 per cent and 28 per cent recovery.

Jono Gillespie, Group Chief Executive, said: "We are very pleased to have reached this important milestone."Jono Gillespie, Group Chief Executive, said: "We are very pleased to have reached this important milestone."
Jono Gillespie, Group Chief Executive, said: "We are very pleased to have reached this important milestone."

The statement added: “The scheme is a key component of the proposed recapitalisation, which will ensure the future of the group and the Everyday Loans business. The group's intention is for the proposed recapitalisation to be implemented shortly following court sanction of the scheme.”

Jono Gillespie, group chief executive, said: "We are very pleased to have reached this important milestone. Whilst this is, in a sense, only the end of the beginning, and significant additional work lies ahead over the coming months, the launch of the scheme is the first key step in reaching certainty as to the extent of our liability for historical redress claims, which should then lead the way towards a successful recapitalisation of the group and secure a successful future of our branch-based lending business.

"It has been a long journey to reach this point and I am thankful to all our stakeholders, including the customer committee, who have helped us get here. I would also like to express my sincere thanks and admiration to all the branch-network team at Everyday Loans who have continued to give 100 per cent throughout this difficult period."