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OFT refuses credit licence to Essex broker

170/04    14 October 2004

A prospective credit broker from Southend-on-Sea, Essex has had her application for a consumer credit licence rejected.

Nazma Ullah had her application for a credit licence refused by an adjudicator on the grounds that she was convicted of blackmail on 19 April 2000. In addition she had a county court judgment issued against her in 2001 for debts owed, was found to have contravened the Business Names Act 1985 and to have a misleading trading name. As a result the adjudicator decided that the trader was unfit to provide credit to consumers and refused the application.

In considering fitness, the OFT takes into account a number of factors carried on 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 practice
• evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

Christine Wade, Director of Consumer Regulation Enforcement, said:

'This applicant has displayed dishonest conduct in committing the serious criminal offence of blackmail. Taking this and the trader's other actions into account, the adjudicator decided that she was unfit to hold a consumer credit licence and refused it accordingly.'

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 number 523424 was published on 6 September 2004. The application was made by Nazma Ullah of Southend-on-Sea.

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