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OFT refuses credit licence to owner of debt management company

179/04    2 November 2004

A debt management trader in Bury, Lancashire, has had her application for a consumer credit licence refused by the OFT.

Laura Daniels, trading as 'debt-clear-direct' and 'Positive Advice', had her application for a consumer credit licence refused on the grounds that she had been trading without a credit licence; she had contravened the Consumer Credit Act by not declaring certain information on her application form; and one of her business associates had committed offences of fraud and dishonesty.

An adjudicator therefore decided that the applicant was unfit to provide credit to consumers and refused her 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:

'The actions of this individual in witholding information, trading without a licence and the conduct of her associates cast doubt on her integrity and fitness to provide credit to consumers. Accordingly she has had her application refused.'

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 543209 was published on 13 October 2004. The applicant was Laura Daniels, Unit 7, Freetown Business Park, Hudcar Lane, Bury, Lancashire, BL9 6EX.

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