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Newcastle used car trader refused credit licence

193/04      30 November 2004

A Newcastle used car trader has had its application for a consumer credit licence refused by the OFT.

Embassy Enterprises Ltd had its licence application refused on the basis that an associate of the firm had convictions for unlawful wounding, possession of a class B drug and affray. The firm also failed to mention the associate's conviction for drugs on the application, 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:

'These are very serious convictions involving violence and possessing drugs and we need to protect consumers by preventing this individual from being involved in offering credit services.'
 
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 application number 555688 was published on 2 November 2004. The application was made by Embassy Enterprises Ltd, Tyneside Autopark, Sandy Lane, Gosforth, Newcastle Upon Tyne, Tyne and Wear, NE13 6PE.

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