Another one bites the dust!
Just when car sales start to rise another major player in the car finance sector has decided to quit the market.
This is bad news for consumers as a lack of competition in this area will mean higher interest rates, unfavorable loan terms and a 'cherry picking' attitude from the remaining operators.
The following update came into our offices this evening outlining Bank of Scotland's plans to exit the motor finance market from today!
"Following a strategic review Bank of Scotland (Ireland) intends to reshape its business to reflect the continuing and very difficult economic environment, and to secure a viable future for the Bank. As a result, the Bank plans to focus on its established strengths of corporate and commercial banking and is committed to maintaining a strong presence in the Irish market.
As part of this review, the Bank has announced its intention to withdraw from the Motor Finance, Asset Finance and Homeloans businesses in addition to the Halifax retail bank network in the Republic of Ireland.
As a consequence of this decision, the Bank will no longer accept any new business applications from today, the 10th February 2010. Our online point of sale system will be deactivated with immediate effect.
Existing customers are not affected by this announcement and will continue to have a Bank of Scotland (Ireland) account for the duration of their agreement. Bank of Scotland (Ireland) will continue to operate in Ireland and manage existing asset finance customer accounts.
Bank of Scotland (Ireland) deeply regrets any inconvenience that this may cause and we would like to thank you for your support in the past and for your continued co-operation and assistance during this difficult period."