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OFT refuses Hampshire financial services provider a consumer credit licence

PN 167/03    12 December 2003

A Hampshire-based financial services provider has had its application for a consumer credit licence refused by the OFT.

Credit Again Services (UK) Ltd's application was refused on the basis that the company director, Lee John Paice, had been sentenced by Winchester Crown Court to six months imprisonment and a training order following a conviction for violent disorder under the Public Disorder Act. An adjudicator therefore decided that the applicant was unfit to hold a consumer credit licence.

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 Credit and Estate Agency, Ray Hall said:
'The director of this company has acted in an unfit manner and therefore the company is not fit 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 refuse licence application number 538628 was published on 1 December 2003. The applicant was Credit Again Services (UK) Ltd, Charwell House, Wilsom Road, Alton, Hampshire GU34 2PP.

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