News from the OFT

June 2012

New OFT Chief Executive announced

Business Secretary Vince Cable has announced the appointment of Clive Maxwell as OFT Chief Executive, to succeed John Fingleton.

Clive Maxwell will take over following a hand-over period. A formal start date for his new role will be confirmed shortly.

Private motor insurance market provisionally referred to the Competition Commission

It has been provisionally decided that the private motor insurance market will be referred to the Competition Commission after it found evidence that insurers compete in a dysfunctional way which may push up premiums for drivers by £225 million a year.

Call for greater patient choice and competition in dentistry market

On 29 May the OFT called for major changes to the £5.73bn UK dentistry market after a market study found that it is not always working in the best interests of patients. The study found that patients have insufficient information to make informed decisions about their choice of dentist and the dental treatments they receive.

The report also raised concerns about continued restrictions preventing patients from directly accessing dental care professionals, such as hygienists, without a referral from a dentist. Other concerns include the current NHS dental contracts in England, the complexity of the complaints process and potential pressure selling by dentists of dental payment plans.

Remote communities report published

On 8 June the OFT published findings of the consultation into markets in remote communities. Around half a million people live in remote areas across the UK. Those who responded to our call for evidence raised concerns about high fuel and grocery prices, limited or high cost delivery services, inadequate public transport, slow internet speeds and poor mobile phone coverage. The report notes how joined up approaches can succeed in making markets work well - or at least better - for those in remote areas, that there is no quick-fix solution within the OFT's powers but that we have a part to play, alongside businesses, communities and government bodies.

Wonga required to ensure improved debt collection practices

Wonga.com Limited has been required to ensure that aspects of its debt collection practices are acceptable. This action follows statements made by Wonga to customers which the OFT considered were not appropriately justified.

Credit tribunal judgments

In two recent judgments the First Tier Tribunal has refused appeals against OFT's credit licensing decisions. On 15 May the Tribunal refused the appeal of Mr Kevin Duke trading as Mr Superloan. Mr Duke was deemed unfit to continue a home-collected money lending business as he had failed to fully disclose a serious history of criminal convictions.

On 11 June, the Tribunal held that Barons Bridging Finance 1 Limited and Reddy Corporation Limited were unfit to engage in second charge lending, often to individuals facing repossession of their homes.

OFT Consumer Portfolio breakfast briefing

On Thursday 17 May John Fingleton gave a presentation on the OFT's Consumer Portfolio to over 60 senior level stakeholder executives and lawyers.

John charted the history of our consumer work, examined current cases and gave a look to the future. The presentation shed light on how economic trends, changing patterns of consumer and business behaviour as well as evolutions in technology, affect consumer law, its evolution and future challenges.