CONSUMER CREDIT LICENCE QUARTERLY UPDATE

5 Aug 2005 11:15 AM

417 licensing actions carried out by OFT

The OFT has conducted 417 licensing actions in the second quarter of 2005.
The OFT refused 14 consumer credit licence applications and revoked six existing licences between 1 April and 30 June.

Another 287 applications were not pursued after further enquiries to the applicant. There were 52 minded to revoke or refuse notices issued in the period in addition to 58 warning/advisory letters.

Under the Consumer Credit Act 1974 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 when revoking and refusing licences during this period included convictions for possession and supply of class B drugs, theft of property, handling stolen goods, possession of a firearm, fraud, offences of violence, applying false trade descriptions, falsifying a document required for accounting purposes, failing to disclose knowledge or suspicion of money laundering and supplying misleading statements to consumers concerning pricing

In considering fitness, the OFT takes into account a number of factors carried on 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.

Christine Wade, Director of Consumer Regulation and Enforcement said:

'In 2005 we have seen an increase in the number of licences being refused on the same six month period last year. In the first half of this year 32 Consumer Credit Licences were refused compared to 15 in the same period last year.'

So far in 2005, 754 licensing actions have been conducted: 32 applications have been refused; nine licences revoked, 76 minded to revoke or refuse notices issued, 123 warning/advisory letters issued, and 514 applications were not preceded with following further enquiries to the applicant.

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 the OFT website. The OFT has also produced sector specific guidance on debt management, second hand cars markets, and debt collection. These detail examples of behaviour that would lead to a licensee's fitness being called into question. See PNs 48/01, 82/02 and 97/03.

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. Where a licensee appeals the licence continues until the appeal is determined.

6. 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.

7. Applications refused between 1 April and 30 June are as follows: Patrick John Evans, Motor dealer - Hereford - 560115
Midwest Mortgage Management, Financial services - Birmingham - 560197 Laurence Ian Werner, Financial services - Presbury, Cheshire - 547662 Graham Wagstaffe, Catering equipment supplier - Scunthorpe - 554637 Antiquity Ltd, House fittings - Sheffield - 380063
Harjit Singh Sahota, Financial services - Southampton - 557641 Emma Louise Tovey, Motor dealer - Newbury, Berks - 565577 Justin William Tidbury, Motor dealer - Newbury, Berks - 544829 Blazes Fireplace and Heating Centres Ltd, Fireplace dealer - Burnley - 471555
Edward Pascal Palmieri, Motor dealer - Dartford - 466699 Derek A Farr, Motor dealer - Vale of Glamorgan - 559976
Peter Charles Collinson, Financial services - Tamworth - 563823 Jason Cooper, Motor dealer - Margate - 566834
Lee Steven Marriott, Motor dealer - Polegate, East Sussex - 479558

8. Licences revoked between 1 April and 30 June are as follows: Jacksons (property agents) Ltd, Financial services/estate agency - Chelmsford - 528888
Eric Frank Williams, Motor dealer - Merthyr Tydfil - 488654 Michael Bardon, Financial services - Bromley - 537732
William Henry Fraser, Motor dealer - Basingstoke - 514281 Maxwell Jacobs Ltd formerly The Debt Organisation, Financial services - Stretford, Manchester - 523730
Aberdeen Independent Financial Advice Ltd, Financial services - Aberdeen - 525606

9. Licensees who have appealed decision:
Jacksons (property agents) Ltd, Financial services/estate agency - Chelmsford - 528888

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 0800 389 3158 oft@eclogistics.co.uk