Collapsed car finance company under investigation

Fri, 18 May 2007



The fallen motor vehicle finance and sales chain, CarShock, are under a major investigation following the "the apparent disappearance of a significant number of vehicles ." The company, now in administration, may have sold multiple car finance policies on single cars .

Furthermore, BDO Stoy Hayward reported, further: "difficulties surrounding the identification and location of leased vehicles," had arisen. Other customers, the firm reported, had not had finance settled. The company shot to fame when their outspoken manager appeared on Boss Swap.

BDO had the following to say on the matter: "This review of vehicle ownership has been a painstaking exercise and is yet to be finalised. This review has identified a number of issues regarding the ownership of vehicles including multiple financing of vehicles, the apparent disappearance of a significant number of vehicles and difficulties surrounding the identification and location of leased vehicles."

The company reportedly had debts of £4.4 million when it ceased trading. Former MD, Mike Porritt, commented: "I would very much like the administrators to be able to fully identify the vehicle stock that was present at the time the company went into administration and report accurately to the creditors . In my view, the administrators are going to find this task extremely difficult because of actions taken by certain finance companies at the time of administration."

All staff have been made redundant .
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