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OFT refuses Hartlepool motor trader a consumer credit licence

189/04    18 November 2004

A motor dealer from Hartlepool has had his application for a consumer credit licence refused by the OFT.

An adjudicator refused Paul Antony Frain's application on the basis that he had a number of convictions including: failing to provide a specimen under the Road Traffic Act; evading tax duty under the Customs and Excise Management Act; handling stolen goods under the Theft Act and possessing controlled drugs under the Misuse of Drugs Act. He also failed to declare three of the above convictions in his application to the OFT in breach of the Consumer Credit Act.

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:

'The applicant has a number of convictions, offences that involve fraud or dishonesty he is therefore unfit 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. 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 545346 was published on 4 November 2004. The application was made by Paul Antony Frain, Unit A, Usworth Road, Hartlepool TS25 1PD.

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