Motormile Finance was a debt collection agency that bought debts from payday loan companies and other creditors. They then chased these debts using emails and debt letters to try and recoup the money.
But Motormile Finance Limited no longer exist as a debt collection group. Instead, they go by a new name – Lantern. If you have a Lantern debt, you can read our Lantern debt collection guide which gives you easy-to-follow guidance on dealing with Lantern debt letters.
Motormile Finance Take the High Road
The Financial Conduct Authority (FCA) became aware of malpractices within Motormile Finance in the way they collected debt.
After an investigation in 2015, Motormile Finance was found to be guilty of a series of legislation breaches. This may not be too surprising considering the number of forum users complaining about Motormile Finance doorstep visits and aggressive debt collection attempts.
As a result of the findings, Motormile Finance then agreed with the FCA to offer redress to almost half a million debtors, ridding their debt due to its own debt collection negligence.
The bottom line was that over £400 million worth of debt was written off, and some previous debtors received a payment back. The total amount paid made back to customers was over £150,000, which averaged at £72 for each debtor (although it was not split equally).
Motormile Finance now Operate as Lantern
After their negative publicity, it was not a shock when Motormile Finance decided to rebrand. They did exactly that in 2018 and are now known as Lantern. The branding of Lantern focus around a human and empathetic approach, but even if they have become more considerate about the way they collect debts, your rights remain the same.
Remember to read our guide on dealing with Lantern debt letters to find out how to reply to their requests for payment.
Further Support Dealing with Debt
For additional help at dealing with debt from any other debt collection group, consult the information at Money Nerd. We bring you easy-to-understand information on debt collection and what you can do to clear your debts.
Start with our debt solutions page to see all the options for yourself!