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OFT refuses consumer credit licence to Brighton trader

PN129/03     10 October 2003

A Brighton-based retail wheels and tyre business Friern Ltd, has had its application for a consumer credit licence refused by the OFT.

An adjudicator refused the licence on the basis that on 24 August 2000 the company's directors, Mr Anthony Stacey and Mr Darren Stevens, were each convicted of nine offences of the unauthorised use of trademarks under the Trade Marks Act 1994 and each ordered to pay fines of £2,500 and £537.50 costs. The company also failed to declare these convictions when applying for the licence.

The adjudicator decided that she was not satisfied that the company was fit to hold a consumer credit licence. Accordingly the licence was refused.

Under the Consumer Credit Act 1974, businesses that offer consumer credit or hire, or who introduce customers to businesses offering credit facilities, must have a consumer credit licence. The OFT has a duty to protect the interests of consumers by monitoring the fitness of applicants and licence holders.

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
• evidence of unfair business practice
• evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

Director for Consumer Regulation Enforcement, Christine Wade said:

'Consumers could have been seriously misled by the directors of this company using signs which might easily be mistaken as registered trademarks. It is also a serious offence to giving false or misleading information, such as the non-declaration of convictions, on an application for a licence. The trader is therefore unfit 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. 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. Applicant number 529669 published on the 22 September 2003. Applicant Friern Ltd, 141 The Gardens, Southwick, Brighton, West Sussex, BN42 4AR.

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