Greenlight Credit enters administration 

The firm provided customers with logbook loans secured on the customer’s vehicle, a form of lending where the lender owns the vehicle until the loan is fully paid back.

A representative example of loans on offer from the firm consisted of an annual percentage rate (APR) of 190.3%. Under this arrangement, a £1,000 loan would set the customer back £1700.04.

Greenlight Credit entered administration due to a “deteriorating financial position”.

Martin Charles Armstrong and Andrew Richard Bailey of Turpin Barker Armstrong have been appointed as Joint Administrators and will “investigate the reasons for the Company’s failure”.

Existing agreements “remain in place” and are subject to existing contractual terms and conditions, meaning customers can continue to make repayments as usual.

The firm is no longer able to issue or broker any new loans.

Varooma said its website would be “regularly updated” to provide creditors and customers with information and will provide regular updates.

Other lenders to have entered administration in 2022 include Oakham, Loans at Home and PerfectHome, resulting in reduced access to credit for sub-prime consumers during a cost-of-living crisis.