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Joshua Dwyer and Robert Spence from Interpath Advisory were appointed as joint special administrators to Contis Financial Services Ltd (CFSL), a Yorkshire-based electronic money institution. CFSL, regulated by the Financial Conduct Authority (FCA), is no longer able to complete its planned orderly wind-down due to a dispute over the release of customer safeguarded funds.
CFSL, authorized by the FCA to issue e-money and provide payment services, had been in the process of winding down its operations following a September 2024 announcement by its parent company, Solaris, to discontinue major parts of its EMI business. The wind-down included transferring the Engage business to Suits Me in November 2024, with a target completion date of April 2025.
However, an ongoing dispute with a third-party financial institution regarding customer funds led CFSL’s directors to place the company into special administration. This move aims to secure the release of the safeguarded funds and facilitate their distribution to customers.
As a result of the administration, all customer accounts, including prepaid debit cards, have been frozen, preventing any payments or receipts. The accounts will remain frozen while the special administrators evaluate the situation and determine the best method for returning funds to customers.
The court’s decision to accept the directors’ application for special administration has impacted customers under distributor programmes such as Trilogy, Ffrees, and Naga Pay. However, those transferred to Suits Me Limited under the Engage programme are unaffected.
The special administrators now bear the responsibility of managing claims against CFSL and attempting to return funds to customers. They are expected to provide a report to creditors within eight weeks of their appointment.
Customers seeking updates or information on the administration process are advised to visit the special administrators’ dedicated portal and are cautioned against potential scams, as the administrators will not contact customers directly by phone.
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