One of the UK’s largest credit specialists has this week confirmed rumours that its homeowner loan division will foreclose, effective immediately.
Capital One Bank announced its intentions to foreclose its sub prime homeowner loan arm during the earlier part of this week, and it is predicted that around 300 jobs will be lost as a result.
Capital One’s Loan division was formed at the latter part of 2004, following the successful buyout of longstanding organisation The HFS Group, to the tune of £90 million. HFS was one of the best-known brands in the loans industry, and was also one the biggest players, writing an estimated £350 million pounds worth of new loans, each year. Originally, the acquisition was intended to strengthen Capital One’s position in the UK, reinforcing their brand as one of the leading all round credit providers.
According to a Capital One spokesman, the closure was simply due to strategic changes of which the division no longer fit into. The spokesman further added that the bank’s views towards the UK market remain unchanged, and that their future strategies are developed with the UK, very much in mind.
