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OFT refuses to issue credit licence to Manchester computer dealer

PN 125/03     25 September 2003

Manchester-based computer dealer Michael Oldham, trading as Gladeside Computer Services, PC Service Centre and PC Posta Part, has been refused a consumer credit licence by the OFT.

An adjudicator found that Mr Oldham had been convicted of a range of offences including numerous counts of burglary, robbery, theft of vehicles and drugs offences.

Mr Oldham also gave false information to the OFT when applying for a consumer credit licence, by failing to declare the majority of his convictions. This is a contravention of the Consumer Credit Act 1974.

The adjudicator decided that he was not satisfied Mr Oldham was fit to hold a consumer credit licence, and accordingly refused the application.

Under the Consumer Credit Act, businesses that are involved in consumer credit or hire must have a consumer credit licence. The OFT has a duty to protect the interests of consumers by monitoring the fitness of those holding and applying for licences.

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

• any offence or conviction connected with 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
• evidence of unfair business practices
• evidence of discrimination on grounds of sex, colour, race or ethnic/national origin

Christine Wade, OFT Director of Consumer Regulation Enforcement, said:

'This action protects Manchester consumers from an unfit trader. It is a serious offence to give false or misleading information on an application for a consumer credit licence, and a trader with a string of convictions of this nature is not considered fit to offer 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 that 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. 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.

5. 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.

6. The determination to refuse licence application number 528600 was issued on 11 September 2003. The applicant was Michael Oldham, trading as Gladeside Computer Services, PC Service Centre and PC Posta Part. The main place of business was Unit 36, Cariocca Business Park, Ardwick, Manchester M12 4AH.

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