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Hull motor trader has consumer credit licence refused by the OFT

222/05    5 December 2005

A Hull-based motor trader has had her application for a consumer credit licence refused by the OFT. This decision will not take effect until the end of an appeal process. (see note 5)

Jane Joanne Audrey Marcia Allen had her licence application turned down on the grounds that she did not disclose on her application form that an associate, who could direct or influence how her business is run, had been convicted of three counts of living on the earnings of prostitution. This was a business practice that appeared to the OFT to be deceitful or oppressive or otherwise unfair or improper, which is a breach of the Consumer Credit Act.

The OFT also found that the associate of the applicant was a director of Camelot Partnership Limited, a company that had committed three offences under the Health and Safety at Work Act.   

It was also discovered that Ms Allen had been convicted of an offence contrary to the Road Traffic Act. 

Christine Wade, Director of Consumer Regulation Enforcement said:

'Ms Allen's failure to disclose the involvement of the associate in her business and these convictions on her application form is an offence under the Consumer Credit Act and has resulted in the OFT considering her to be unfit to hold a credit licence. The fact that she gave us misleading or false information makes her unsuitable 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 by the OFT under the Consumer Credit Act are not the same as those of a court and the adjudicator’s findings under the Act 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 law 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. Ms Allen has until 12 December 2005 to appeal.

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