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Stockport lender has credit licence revoked

Since this press release was issued an appeal has been lodged with the Secretary of State for Trade and Industry. The appeal was turned down and the OFT decision to revoke the licence stands.

159/04    29 September 2004

A Stockport finance broker has had his consumer credit licence revoked by the OFT.

An adjudicator found that Michael Anthony Morris had been convicted on 18 August 2000 at Salford Magistrates Court for driving while disqualified and without motor insurance. Mr Morris had also failed to disclose certain earlier convictions (now spent) when he applied to renew his licence in May 2001. Providing misleading or false information to the OFT when applying for a consumer credit licence is an offence under the Consumer Credit Act.

An adjudicator therefore decided that the applicant was not fit to hold a consumer credit licence and accordingly his licence was revoked.

In considering fitness, the OFT takes into account a number of factors carried out by the business or anyone involved in running the business including:

• any offence or conviction of violence or dishonesty 
•  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, Director of Consumer Regulation Enforcement, said:

'Failing to disclose convictions in a consumer credit licence application is a breach of the Consumer Credit Act and therefore this licensee was 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. 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.

4. 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.

5. The determination to revoke licence number 410845 was published on 15 September 2004. The applicant was Michael Anthony Morris, 37A Roundcroft, Romiley, Stockport, SK6 4LS.

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