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First Plus, up until now the most popular choice for UK consumers seeking a secured loan, has announced that it will stop taking on new customers from August.

The secured loans company, which is owned by Barclays Bank, will also axe 300 jobs as a result of the move.

Other businesses have felt the impact of the decision. Moneysupermarket saw its share price drop in the wake of the announcement, while Bolton-based company Loanmakers saw its shares fall to a record low price.

Loanmakers released a statement following the share price drop. It said: “First Plus is the leading provider of secured loans to Loanmakers, and its withdrawal from the market will adversely affect the company's business.

”The board will be undertaking an immediate review of the business to see how it can alleviate the impact of the announcement. This will encompass sourcing additional capacity from other providers, as well as a review of the current cost structure.”

TV star Carol Vorderman, who has been the public face of First Plus for some time now, has so far not commented on the development.