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OFT decides to refuse and revoke Norwich electrical retailers' credit licences

177/05    26 September 2005

The OFT has decided to revoke the consumer credit licence of a Norwich electrical retailer and refused the credit licence application made by a second electrical retailer in the area. Karen Jane Cunningham was respectively the licence holder and a company officer of the applicant, East Anglian Monitoring Ltd. Both businesses operate from the same Norwich address. These decisions will not take effect until the end of any appeal process (see note 5).

These decisions were made on the grounds that a business associate of Karen Cunningham had convictions for assault, using threatening words and behaviour in public, and providing false information to the OFT. East Anglian Monitoring Ltd, another business associate of Ms Cunningham, has also given false or misleading information to the OFT and has engaged in unlicensed trading, both matters involving a breach of the Consumer Credit Act.

The Adjudicator decided he was not satisfied Karen Jane Cunningham was fit to hold a consumer credit licence and accordingly decided to revoke her sole trader licence. He also decided to refuse the licence application made by East Anglian Monitoring Ltd. Neither Ms Cunningham nor East Anglian Monitoring Limited made any representations to the OFT.
 
In considering fitness, the OFT will take into account a number of factors including:

• any offence or conviction of violence or dishonesty carried out by the business or anyone involved in running the business
• failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation
• consumer complaints and how they are dealt with
• evidence of unfair business practice
• evidence of discrimination on grounds of sex, colour, race or ethnic origin.

Christine Wade, Director of Consumer Regulation, said:

'Ms Cunningham was considered by the OFT to be unfit due to the convictions of a business associate, unlicensed trading and the fact that she and a business associate provided information to the OFT that was false or misleading. East Anglian Monitoring Limited was also considered to be unfit for similar reasons. Offences under the Consumer Credit Act are serious matters and reflect upon the fitness of an applicant or trader to hold a licence.'

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. Adjudicators issue and determine licensing Notices under the Consumer Credit Act. They do so on behalf of the OFT, but make individual and independent decisions on fitness based upon the contentions in a Notice, the evidence attached to a Notice and the representations of those to whom the Notices are addressed. Representations may be made in writing and at an oral hearing.

5. The determination to revoke licence number 543411 was published on 6 September 2005. The licensee is Ms Cunningham on behalf of East Anglian Marketing Ltd. Ms Cunningham has until 6 October 2005 to appeal the decision.

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