OFT REFUSES CREDIT LICENCE TO LEICESTER MOTOR TRADER

15 Sep 2003 11:45 AM

A Leicester-based motor dealer, trading under the name Auto Toy Store Leicester, has had his application for a consumer credit licence refused by the OFT.

An adjudicator refused the licence on the basis of the previous convictions of the applicant, Shailesh Kataria, and his failure to disclose these convictions on his licence application.

In May 2001 Mr Kataria was sentenced at Northampton Magistrates' Court to six months in prison for 12 offences under the Trade Descriptions Act 1968 and to three months in prison for three offences under the Forgery and Counterfeiting Act 1981.

The adjudicator decided that he was not satisfied that Mr Kataria was fit to hold a consumer credit licence. Accordingly the licence was refused.

Under the Consumer Credit Act 1974, businesses that offer consumer credit or hire, or who introduce customers to businesses offering credit facilities, must have a consumer credit licence. The OFT has a duty to protect the interests of consumers by monitoring the fitness of applicants and licence holders.

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

- evidence of unfair business practice

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

Director for Consumer Regulation Enforcement Christine Wade said: 'This decision is good news for consumers in Leicester giving protection from an unfit trader with a number of convictions involving dishonesty. Where there is evidence that a trader is unfit to receive a consumer credit licence the OFT will always turn down the application.'

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. 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. 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.

6. Applicant number 527399 published on the 4 September 2003. Applicant Mr Shailesh Kataria, Ground Floor, Parvette House, Abbey Street, Leicester, LE1 3TE.

PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk OFT reports and consumer information leaflets are available free from: OFT, PO Box 366, Hayes UB3 1XB 0870 6060321 oft@eclogistics.co.uk