HIP Facilities Group and subsidiary HIP Payment Services are closing down due to uncertain political outlook and housing slump

Hips provider HIP Facilities Group and its subsidiary HIP Payment Services Limited are to close.

The companies announced today that they are withdrawing from the market and will not be accepting any new business from 31 August 2008, after becoming the latest victims of the worsening housing market.

HIP Payment Services will continue to act on any matters relating to existing loans until each case is concluded and the book has run off.

Jeff Smith, the chief executive of HIP Facilities Group, said: “Having weathered the shambolic launch and roll-out of Hips, I am very disappointed that we have had to take this decision. However, there eventually comes a time when even a market leader must acknowledge that the transaction volumes in the Hip market no longer offer an independent lender such as HIP Payment Services a viable platform on which to build a profitable business.

“With market prospects remaining grim for the foreseeable future and the political outlook still uncertain, we are unable to justify the further investment required to continue to support trading at these levels.”

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