Firstplus closure 'to cut affordability of debt consolidation loans'
Firstplus closure 'to cut affordability of debt consolidation loans'
Wednesday 9th July 2008
Yesterday it was announced that Barclays subsidiary Firstplus, which is perceived as a market leader in the personal loans sector, will no longer be accepting any new business.
This announcement is a blow for debt-hit homeowners since it will make secured credit and consolidation loans significantly harder to come by, according to uSwith.com.
A statement from the site said: "A large proportion of business is sent to [Firstplus] via brokers. Brokers will now struggle to help consumers that need secured loans and consumers will in turn struggle to get hold of cheap consolidation loans as companies continue to tighten their lending criteria.
"Lenders have reduced the amount of credit on offer to applicants and is undoubtedly harder to come by."
Firstplus will stop offering loans for new customers as of August 9th.
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