OFT REFUSES TO RENEW CREDIT LICENCE OF STOCKPORT TRADER

15 Sep 2003 11:45 AM

A Stockport-based home fittings trader, Mr Kenneth Ellis, operating under the name Choice K.B.B. (Choice Kitchens Bedrooms Bathrooms), has had his application for a renewal of his consumer credit licence refused.

The adjudicator refused to renew the licence on the basis that Choice K.B.B had left work in an unsatisfactory, incomplete and, on two occasions, seemingly unsafe condition and had failed to rectify defective and unsafe work. Also Mr Ellis had used abusive and threatening language to customers in the course of the business.

In addition, the applicant had failed to disclose on his application three County Court judgements against him which totalled £9861.

The adjudicator decided that he was not satisfied that Mr Ellis 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 Stockport giving protection from an unfit trader. Where there is evidence that a trader is is no longer fit to have a consumer credit licence the OFT will always turn down the renewal 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. The determination for licence number 419455, Kenneth Ellis, 23 Llanberis Road, Cheadle Hulme, Stockport, Cheshire, SK8 6BU was published on 8 September 2003.

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