Newsroom

Consumer credit licence quarterly update

318 licensing actions carried out by OFT

207/05    2 November 2005

The OFT has conducted 318 licensing actions in the third quarter of 2005.
The OFT refused eight consumer credit licence applications and revoked six existing licences between 1 July and 30 September.

Another 193 applications were not pursued after further enquiries to the applicant. There were 37 minded to revoke or refuse notices issued in the period in addition to 74 warning/advisory letters.

Under the Consumer Credit Act 1974 businesses that are involved in consumer credit or hire must have a consumer credit licence. The OFT has a duty to protect the interests of consumers by monitoring the fitness of those holding or applying for licences.

Some of the fitness issues taken into account when revoking and refusing licences during this period included possession of a firearm  without a certificate, assault, applying false trade descriptions to goods, false imprisonment, obtaining property by deception, receiving stolen goods, and possession of a controlled drug with intent to supply. 

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 practices
• evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

Christine Wade, Director of Consumer Regulation and Enforcement said:

'Credit is a key area of work for the OFT and licensing is an essential part of ensuring that this market works well. In 2005 we have seen an increase in the number of licences being refused or revoked on the same nine month period last year. In the first nine months of this year, 55 consumer credit licences were refused or revoked compared to 39 in the same period last year'.

So far in 2005, 1,072 licensing actions have been conducted: 40 applications have been refused; 15 licences revoked, 113 minded to revoke or refuse notices issued, 197 warning/advisory letters issued, and 707 applications were not preceded with following further enquiries to the applicant.

NOTES

1. The Consumer Credit Act 1974 requires 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. Where there are substantiated doubts about a trader's fitness, the OFT issues a 'Minded to Refuse' or 'Minded to Revoke' Notice (MTR). This is a formal notice letting the trader know that the OFT is minded to refuse to grant a licence or to revoke an existing licence. It sets out the reasons for the proposed action with supporting evidence. Under s34 of the Act, the trader has the right to respond to the Notice by making written and/or oral representations to an Adjudicating Officer, who acts for and on behalf of the OFT. 

3. Guidance for holders of consumer credit licences is available from the OFT website. The OFT has also produced sector specific guidance on debt management, second hand cars markets, and debt collection.
These detail examples of behaviour that would lead to a licensee's fitness being called into question. See press releases 48/01, 82/02 and 97/03.

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. Where a licensee appeals the licence continues until the appeal is determined.

6. 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.

7. Applications refused between 1 July and 30 September are as follows:
BCM Vehicle Hire Ltd – Motor vehicle hire – Margate – 568254
Timothy J Wright - Property developer – Hull – 472541
Linda Susan Cook - Motor dealer – Malton, N.Yorks – 567177
William Niven - Alarm systems – Teignmouth, Devon – 567457
St James Financial Services Ltd - Home improvements Bilston, W.Midlands – 555720
East Anglian Monitoring Ltd - Electrical retailer  – Norwich – 550687
Tracey-Anne Elizabeth Henney - Financial adviser – Stafford – 567028
Lester John Stacey - Motor homes – Market Drayton, Shropshire – 567144

8. Licences revoked between 1 July and 30 September are as follows:
Improve Your Home Ltd – Mail order supplier – Manchester – 560627
William Faulkner - Estate agent – Belfast – 505515
Charles Peter Bateman - Accountant – Manchester – 542495
Harkanwaljit Singh Khabra - Conservatory installations  – Tipton, W.Midlands – 499397
Karen Jane Cunningham - Electrical appliance sales – Norwich – 543411
Tracie Irene Bell - Debt management – Teignmouth, Devon – 295144
 
9.  Applicants who have appealed decision:
Timothy J Wright - Property developer – Hull – 472541
Tracey-Anne Elizabeth Henney - Financial Adviser – Stafford -   567028

10. Licensees who have appealed decision:
Improve Your Home Ltd – Mail order supplier – Manchester – 560627
William Faulkner - Estate agent – Belfast – 505515
Tracie Irene Bell – Debt Management – Teignmouth, Devon - 295144

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