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Merseyside motor trader's application for credit licence refused

213/05    8 November 2005

Milestone Motors Ltd has had its application for a credit licence refused by the OFT.

The motor trader, based in the Wirral, had its application turned down on the grounds that an associate of Milestone Motors has convictions for grievous bodily harm, obstructing a police officer, road traffic offences, and being drunk and disorderly. Milestone Motors failed to provide a complete list of these convictions when completing the application form, which is itself a breach of the Consumer Credit Act.

The Adjudicator was not satisfied Milestone Motors Ltd was fit to hold a consumer credit licence and accordingly refused its application. 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 Enforcement said:

'Milestone Motors' failure to disclose all the convictions of an associate is a serious offence. This matter, together with the convictions themselves, means that the trader is unfit to hold a consumer credit 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. 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. Milestone Motors has until 18 November 2005 to appeal this decision.
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. The determination to refuse application number 573207 was published on 19 October 2005. The licence applicant was Milestone Motors Ltd, 18 Brighton Street, Wallasey, Wirral, Merseyside, CH44 6QN.

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