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OFT revokes Swansea motor dealer's credit licence

Addition to original press release: Please note that Mr Bailey has lodged an appeal with the Secretary of State against the OFT decision to revoke his licence.

PN 139/03     3 November 2003 

Swansea-based motor dealer Mark Thomas Raymond Bailey has had his consumer credit licence revoked following action by the OFT. The OFT has also refused an application by The Trade Centre Wales Limited for a consumer credit licence. Mr Bailey is a director and company secretary of The Trade Centre Wales Limited.

An adjudicator revoked and refused the licences on the grounds that Mr Bailey had committed nine offences under the Trade Description Act and, in committing those offences, had engaged in unfair or improper business practices. In addition, the applicant failed to declare these convictions when applying for a credit licence. 

The adjudicator was not satisfied Mr Bailey or The Trade Centre Wales Limited was fit to hold a credit licence. Accordingly, Mr Bailey's licence was revoked, and the application by The Trade Centre Wales Limited was refused.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:

'Businesses must deal fairly and not attempt to mislead consumers. 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. The determination to revoke licence application number 257307 was published on 30 September 2003. The licensee was Mark Thomas Raymond Bailey. The determination to refuse licence application number 513223 was also published on 30 September 2003. The applicant was The Trade Centre Wales Limited. The main place of business for both licensee and applicant was stated to be Eurocentre, Neath Abbey Trading Estate, Neath Abbey, Swansea S10 7DR.

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