Mixed Signals from Secured Loans Market
There seems to be mixed signals emanating from the Secured Loans market. We heard that Loanoptions are doing well, as to are Yesloans, but then we had the report of Compass making some staff redundant and now we have the news that GE Money might be making people redundant in its secured loans division. Apparently staff at GE owned Purple Loans based in Wolverhampton were called into a meeting yesterday and informed that plans were afoot to restructure the business.
They were told GE is to carry out a review of both Purple Loans, its direct-to-consumer brokerage, and all or parts of GE Money Lending Solutions, the direct-to-consumer business bought from Tony Murtagh, who ran it under the name The Mortgage Group.
Bestadvice.net reports that one source said “There has been concerns for a while that Purple has been performing below its target. I’m not surprised at this news.”
As with most cases in this hire and fire world, redundancies don’t necessarily mean a business is under performing though. In some cases Companies just restructure to become leaner and meaner and - let’s face it - to improve their bottom lines.
Tom Wilson, a GE spokes person said ““At GE Money Home Lending, we are constantly assessing ways of developing and growing our business, whilst ensuring we provide a quality service and product offering to our customers. We are in the process of reviewing our B2C operation in Wolverhampton, but no firm decisions have been made at this stage.”
He also went on to say that only the Wolverhampton operation would be affected by the restructuring.
