Fernwood Financial Limited, a major UK payday loan firm, has collapsed into liquidation, wiping out debts for thousands of customers overnight. The Financial Conduct Authority (FCA) confirmed the firm's insolvency on 27 June 2025, sparking relief for borrowers but raising concerns about the stability of the short-term lending sector.
As the cost of living crisis continues to grip the UK, this development highlights the risks of high-cost loans and the need for consumer vigilance.
