London Scottish to Close Branches as Bad Debt Costs Rise
London Scottish Bank to close 8 branches as bad debt costs nearly double
8th June 2005
A company who lends personal loans to households with bad credit ratings has announced the closure of 8 branches, as its costs from bad debt rose dramatically while demand for new loans fell.
London Scottish Bank, who will still operate 89 branches, saw its bad debt costs rise 45% to around £6m, while its commission earnings on new loans fell by 29%.
Profits as a whole however rose by 7.6%, but the branches are to close as part of a general restructuring of the company in light of the figures and an investment in new IT systems.
The news comes as the latest in a recent spate of credit companies announcing raised estimates of bad debt costs.
Read More: BBC Report
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