Personal injury claims firm Accident Advice Helpline has gone into administration, with accountants Lennard Curtis & Co appointed to oversee the process, claimed a report.
A director of parent company Accident Advice Holdings, Lance Beck, said the subsidiary had failed because one of its financial backers pulled out of the market after the collapse of the Accident Group last year.
According to the report, First National was one of the banks providing loans used to take out insurance policies required to cover claimants' legal costs. Beck said the companies which dealt with First National were the ones which had been placed into administration.
Accident Advice said it had been trying to find alternative funding to replace the previous facility but the process had taken longer than expected, causing a substantial drop in income.
Four subsidiaries of Accident Advice Holdings had been placed into administration, said the report, but Beck said the company would continue as a going concern.
Beck said very few of the group's 150 staff would be made redundant. The report said the group planned to transfer customers to its unaffected subsidiaries, which would take the Accident Advice Helpline brand.
