Newsroom

Peterborough credit broker refused credit licence

176/04    27 October 2004

Peterborough credit broker C&G Marketing Ltd has had its consumer credit licence application refused by the OFT.

An adjudicator found that the business had been engaged in credit brokerage without a licence and had canvassed loan agreements door-to-door – both of which are offences under the Consumer Credit Act. In addition the company's advertisements failed to carry the requisite warning that a person's home may be at risk if repayments are not made and did not give information about the credit broker's fees or terms of business. The adverts also misled consumers by suggesting that their right to buy their property was at risk, when this was not the case, and that loans were available regardless of income and without proof of income. An adjudicator found that the applicant had engaged in unfair business practices by conducting business in this manner.

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:

'Providing credit without a licence, canvassing loans off trade premises and misleading consumers will not be tolerated by the OFT.'

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 537562 was published on 5 October 2004. The applicant was C&G Marketing Ltd, Cromwell Business Centre, 21a Cromwell Road, Peterborough, PE1 2EB.

Back to:2004