Barclays steps up battle with Covid mortgage fraudsters amid surge in variety of corporations going bust
A push by Barclays to claw again tens of millions of kilos from Covid mortgage fraudsters spurred a surge within the variety of firms pressured to wind up final month.
Obligatory liquidations climbed to 242 in October, up from 210 in September and simply 53 a 12 months earlier.
It was the very best quantity since earlier than the pandemic, throughout which authorities assist schemes and bank-payment holidays provided struggling companies a lifeline.
Obligatory liquidations climbed to 242 in October, up from 210 in September and simply 53 a 12 months earlier
The Insolvency Service stated the rise was partly brought on by ‘numerous petitions’ from one financial institution, Barclays, which issued 45.
However there was additionally a broader enhance within the variety of corporations going bust.
The Mail on Sunday revealed earlier this 12 months that Barclays has enrolled a litigation agency to claw again cash from round 100 Bounce Again Mortgage (BBL) debtors thus far recognized as being suspected of fraud.
Barclays issued 345,006 loans value £10.8billion below the Government’s backed BBL scheme, however it’s estimated that £259million was siphoned off by criminals.
Corporations can face obligatory liquidation when collectors akin to banks petition for them to be wound up.
It doesn’t imply these firms are suspected of fraud. However Barclays’ pursuit of fraudsters elevated the general variety of firms it focused.
A spokesman for the financial institution stated: ‘Barclays seems to assist prospects who’re going through monetary issue, together with those that borrowed below authorities schemes.
‘Nonetheless, in sure circumstances, together with the place there seems to be a misuse of funds, formal restoration motion could also be taken to get better taxpayers’ cash.’
The official figures additionally confirmed firm insolvencies total – together with voluntary winding up, administrations and restructuring offers referred to as firm voluntary preparations – rose by 1,948 final month, 38 per cent up on final 12 months.