London Scottish Bank Goes Under
London Scottish Bank, the lender which specialises in customers with poor credit histories, plunged into administration this morning after regulators stopped the group from accepting customer deposits, reports the Times.
In a statement, LSB said it had sought an administration order yesterday and that Ernst & Young had been appointed as administrator.
London Scottish specialises in offering fixed-rate savings accounts and loans to customers with poor credit histories.
With around 10,000 savers, the bank has some £250 million in customer deposits and employs around 700 people.
In the six months to April 2008, it unveiled losses of £7.4 million.
The government pledged that no savers would lose money as a result of the bank’s collapse, even if their savings exceeded the £50,000 limit set by the Financial Services Compensation Scheme.
In a statement, LSB said it had sought an administration order yesterday and that Ernst & Young had been appointed as administrator.
London Scottish specialises in offering fixed-rate savings accounts and loans to customers with poor credit histories.
With around 10,000 savers, the bank has some £250 million in customer deposits and employs around 700 people.
In the six months to April 2008, it unveiled losses of £7.4 million.
The government pledged that no savers would lose money as a result of the bank’s collapse, even if their savings exceeded the £50,000 limit set by the Financial Services Compensation Scheme.
