A collapsed payday lender was owed £10.8m by customers before its insolvency but less than £1m of that is expected to be recovered, new documents have revealed. Web Loans Processing, which traded as Toothfairy Finance, went into administration in December 2013 with a loan book valued at £10.8m, according to administrators Harris Lipman. A company called Loads of Dosh Limited has since bought the company’s assets for £30,000, of which £4,998 is for “equipment” while the remaining £25,000 is for the loan book, which also has a deferred consideration of 55% of gross recoveries on the debts owed. The administrators estimate that consideration to be worth £797,500, which places a total estimated value of £822,500 on the loan book, equivalent to just 7.5% of the outstanding loans.Harris Lipman’s deferred consideration estimate is based on a separate claim by one of the firm’s directors that up to £1.45m of the loan book is potentially recoverable. Joint administrators Freddy Khalastchi and Martin Atkins said in a statement: “On the basis of total collections in the region of £1.45m, the deferred consideration has a value of £797,500. The actual value of the deferred consideration will depend upon the level of collections which can be achieved by Loads of Dosh Limited.”..........Read more here