Kabbage cease consumer lending in the UK
We understand that Kabbage, a finance company offering short term loans for online sellers, has made a commercial decision to change the direction of its business and to cease lending to consumer borrowers in the UK.
Their permission from the Financial Conduct Authority (FCA) to engage in consumer credit lending activities, including issuing new loans and servicing existing loans lapsed on 30 September 2015. The FCA site lists Kabbage on the Consumer Credit Register as having had “Interim Permission” to operate in the UK and we’re surmising that the cost of compliance simply didn’t justify the levels of business in the UK.
Kabbage, we hear, will cease issuing any new loans and will also not collect any further repayments on any existing consumer loans. This means for consumer borrowers, any outstanding balance on a Kabbage loan after the 30th of September 2015 will be written off and consumer borrowers will not be required to make any further payments under or in relation to the outstanding balances.
Any debts (including arrears if applicable) will be treated as settled. Where applicable Kabbage will also make the appropriate notifications to the credit reference agencies that they share information with, informing them that there are no longer arrears and that debts have been settled.
Kabbage is one of the biggest US based players in the working capital finance market and have funded over $1 billion in loans to help businesses grow. Our understanding is that moving forward Kabbage will now only offer loans to businesses in the UK (i.e. you’ll need a registration at Companies House, sole traders won’t be able to borrow from Kabbage).
If you need to contact Kabbage concerning any outstanding loans with them (or to apply for a new loan) you can reach them on 0808 120 3641, via email at email@example.com or through their website uk.kabbage.com