The companies behind car leasing provider Buy2Let Cars have fallen into administration, the Financial Conduct Authority (FCA) has said.
The FCA had placed restrictions on Raedex Consortium, which owns Buy2Let Cars, last month amid concerns about its finances.
The regulator said this morning (16 March) that Raedex Consortium and Buy 2 Let Cars Ltd, which arranged the leases, had fallen into administration.
The Buy2Let Cars website was still live this morning but the FCA said the directors had obtained further insolvency advice and concluded that the firms are insolvent.
“On 19 February 2021, we imposed a number of restrictions on Raedex requiring the firm to cease conducting regulated activities because of serious concerns about its finances,” the FCA said.
“The restrictions stopped Raedex from entering into any new car leases, while allowing existing lease agreements to remain. Buy 2 Let Cars Ltd subsequently stated it was not accepting any new investment.
“Following the FCA’s concerns, the directors of Raedex obtained further financial accounting advice, the advice of insolvency practitioners and, on 15 March 2021, appointed Graham Bushby and Matt Haw of RSM Restructuring Advisory LLP as administrators over Raedex, Buy 2 Let Cars Ltd and Rent 2 Own Cars Ltd.”
The platform enabled investors to fund car leasing agreements and advertised interest rates of up to 11 per cent.
The FCA said investors will become creditors in the administration.