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Doncaster mobile phone dealer refused credit licence

174/04    19 October 2004

A mobile phone retailer based in Doncaster has had its application for a consumer credit licence refused by the OFT.

An adjudicator found that a director of Fone Clinic Limited in Bentley, Doncaster, had been convicted of public disorder offences, possessing an offensive weapon, attempting to pervert the course of justice, failing to meet bail requirements and breach of a community service order. The adjudicator also found that the applicant had failed to mention all but one of these convictions in applying for a licence which contravenes the Consumer Credit Act.

The adjudicator therefore decided that the applicant was not fit to hold a consumer credit licence and accordingly the application was refused.

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:

'The OFT takes offences of this nature very seriously in considering an applicant's fitness to hold a licence as well as the failure to disclose such convictions. This applicant was not fit to provide credit to consumers and the application for a licence was refused 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 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 refuse licence number 537746 was published on 6 October 2004. The applicant was Fone Clinic Ltd, 61-63 High Street, Bentley, Doncaster, South Yorkshire, DN5 0AA.

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