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OFT removes credit licence from London vehicle matching company

127/08    4 November 2008

The OFT has revoked the consumer credit licence of Vehicle Seller Limited, a vehicle matching company based in north London.

Mr Kieran Cassidy, the controller and director of Vehicle Seller was also previously company secretary of another vehicle matching company, Vehiclematch Services Limited (Vehiclematch), which went into compulsory liquidation on 5 December 2007.

Despite previous warnings from the local Trading Standards Service, Vehiclematch and Vehicle Seller continued to cold-call consumers who had advertised their vehicles for sale in motor publications and websites and induced them into paying between £79.99 and £99.99 for an introduction to buyers.

They gave customers the misleading impression that a number of buyers had expressed an interest in their particular vehicle, that these buyers were willing to pay more than the purchase price and were ready to view the vehicle on the same day or very soon afterwards.

In fact, Vehiclematch and Vehicle Seller would subsequently re-advertise the vehicle on their own websites and pass on details of anyone who had shown a general interest in the make/model of car.

The companies also failed to:

• rectify faults identified by consumers in advertisements for their vehicle that were posted on the companies' websites,
• inform consumers during the initial telephone call of their refunds policy and other important terms such as the company's liability if buyers did not turn up,
• sign undertakings requested from Redbridge Trading Standards Service, in order to address consumer complaints,
• consider, or adequately consider or refused to consider reasonable requests for refunds, and
• respond to complaints or have an adequate complaints handling system in place.

An OFT adjudicator found that as a result, Vehicle Seller was no longer fit to hold a Consumer Credit Licence.

Ray Watson, OFT Director of Consumer Credit, said:

'Vehicle Seller was engaged in deceitful and unfair business practices. This is unacceptable behaviour and we have therefore revoked their Consumer Credit Licence.'

NOTES

1. The Consumer Credit Act 1974 (the Act) 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. The OFT can refuse or revoke a licence if it decides that a trader is not fit to hold one.

2. Adjudicators issue and determine licensing notices under the 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.

3. The determination to revoke licence number 594342 was published on 30 April 2008. The licence holder was Vehicle Seller Ltd. A refusal to grant a licence or the revocation of an existing licence can be appealed to the Consumer Credit Appeals Tribunal. The appeal period has now passed and Vehicle Seller did not appeal.

4. Proceedings by the OFT under the 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.

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 Consumer Credit Licensing on 020 7211 8608 and licence details can be found on the Consumer Credit Public Register.

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