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OFT takes consumer credit licence action against hearing aid retailer

PN 162/03     5 December 2003

A Scottish-based hearing aid retail company has had its application for a consumer credit licence refused and its director's licence revoked, by the OFT. 

An adjudicator refused Balmoral (Audiological) Ltd's application on the basis that Mr Ian Henderson Johansen, a director and controller of the company, had committed serious misconduct under the Hearing Aid Council Act and broken the Council's Code of Practice by employing a hearing aid dispenser who was not registered to dispense hearing aids. For these reasons the adjudicator also decided that Mr Henderson was not fit to hold a consumer credit licence and accordingly the licence was revoked.

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:

'The licensee has engaged in deceitful and improper business practices which mean both the company and its director are 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 529099 published on the 5 November 2003. Applicant Balmoral (Audiological) Ltd, Baitland House, Airlie, Angus, DD8 5NP.

7. Applicant number 264213 published on the 5 November 2003. Applicant Ian Henderson Johansen, Baitland House, Airlie, Angus, DD8 5NP.

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