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Consumer credit licence quarterly update

127/07    4 September 2007

The OFT has conducted 112 licensing actions in the second quarter of 2007 (April - June 2007).

The OFT refused 11 consumer credit licence applications and revoked six existing licences. The OFT also published 20 minded to revoke or refuse notices and issued 75 warning or advisory letters.

Under the Consumer Credit Act, 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 include acts of blackmail, fraud, dishonesty, physical violence, tax evasion, evidence of unlicensed trading, actual and grievous bodily harm, conspiracy to obtain property by deception and breaches of the Consumer Credit Act.

The OFT has launched a new complaints form and evidence checklist, primarily for consumer advisers, as part of its interim compliance strategy on debt collection. This is aimed at improving the quality of complaints evidence submitted so as to better inform intelligence led licensing interventions in the future.

The complaint forms and checklist can be downloaded from the Debt collection practices and Debt management practices pages on this website.

In considering fitness, the OFT takes into account a number of factors carried out 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 ethic/national origin.

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 this website. The OFT has also produced sector specific guidance on debt management, second hand cars markets, and debt collection.

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 Business Enterprise and Regulatory Reform.

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 on 020 7211 8608.

6. Applications refused between 1 April and 30 June are as follows:
 
Colin Andrew Boundy, Motor Dealer, Plymouth, Devon - 589879
George Spencer, Financial and Ancillary Credit, Bournemouth, Dorset - 588742
CM Personal Loans Ltd, Financial - Hire & Unsecured Credit, London - 586317
Jeremy Burdett, Financial - Mortgage & Secured Credit, Wimborne, Dorset - 593928
Ann Maria McGlacken, Financial - Hire & Unsecured Credit, Romiley, Stockport - 592530
Matthew L Reardon, Financial - Mortgage & Secured Credit, Cardiff - 593447
Cornishway Motors Ltd, Motor Dealer, Taunton, Somerset - 583667
VI Prestige Car Hire (Bradford) Ltd, Motoring & Transport, Bradford, West Yorkshire - 592478
Salford Technical Services Ltd, Motor Dealer, Manchester - 117363
Ian Neil John White, Financial - Professional Services, East Sussex - 356069

7. Licences revoked between 1 April and 30 June are as follows:

Alan McNally, Financial - Hire & Unsecured Credit, Birmingham - 559461
Unicorn Credit Ltd, Security Products, Wellingborough, Northamptonshire - 565810
Unicorn Classic Ltd, Security Marketing & Sales, Wellingborough, Northamptonshire - 526227
ICM Group Ltd, Financial - Insurance, Brighton, Sussex - 572686
Charterhouse Gresham & Co Ltd, Financial - Ancillary Credit, Brighton, Sussex - 568691

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