OFT refuses credit licence application from Kent vehicle hire trader

164/05 30 August 2005

A vehicle hire trader from Kent has had his application for a consumer credit licence refused by the OFT.

BCM Vehicle Hire Ltd from the Thanet area of Kent had its application for a consumer credit licence turned down on the grounds that business associates of the applicant have convictions for assaulting a police officer, drink driving, receiving stolen goods, driving whilst disqualified, and growing cannabis. They also failed to declare some of these convictions when applying for the licence, which is in itself a breach of the Consumer Credit Act.

The adjudicator decided the applicant was not fit to hold a consumer credit licence and accordingly the application for a licence was refused.

In considering fitness, the OFT will take into account a number of factors including:

any offence or conviction of violence or dishonesty carried out by the business or anyone involved in running the business
failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation
consumer complaints and how they are dealt with
evidence of unfair business practice
evidence of discrimination on grounds of sex, colour, race or ethnic origin.

Christine Wade, Director of Consumer Regulation Enforcement, said:

'These convictions, coupled with the fact they weren't all declared to us, are serious matters which call into question the suitability of the applicant to provide credit to consumers.'

NOTES

1. The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money or are involved in activities relating to credit or hire to be licensed by the OFT.

2. The OFT can refuse or revoke a licence if it decides that a trader is not fit to hold one.

3. It should be noted that proceedings under the Act are not the same as those of a court and the adjudicator's findings are not the same as convictions by a court. Therefore where the adjudicator finds that an offence has been committed or a provision of the statute has been contravened, it does not mean that the person concerned has been convicted under court proceedings of that offence or of that contravention.

4. Adjudicators issue and determine licensing Notices under the Consumer Credit Act. They do so on behalf of the OFT, but make individual and independent decisions on fitness based upon the contentions in a Notice, the evidence attached to a Notice and the representations of those to whom the Notices are addressed. Representations may be made in writing and at an oral hearing.

5. An adverse determination (a refusal to grant a licence or the revocation of an existing licence) can be appealed to the Secretary of State for Trade and Industry.

6. The Consumer Credit Public Register is maintained by the OFT. The register documents traders that hold a licence and any action taken against them. It also details traders that have applied for a licence. Enquiries can be made to the Consumer Credit Licensing Bureau on 020 7211 8608.

7. The determination to refuse application number 568254 was published on 15 July 2005. The licence applicant was BCM Vehicle Hire Ltd. The principal place of business was Manston Court Garage, Manston Road, Manston, Ramsgate, Kent CT12 5BH.

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