MOTOR TRADERS HAD MOST LICENCE REVOCATIONS/REFUSALS IN 2002

29 Jan 2003 11:45 AM

Motor traders accounted for nearly a third of licences revoked or refused by the OFT in 2002.

The OFT refused or revoked a total of 62 licences in 2002, 19 of which were car dealers. Financial services/mortgage brokers had 14 adverse determinations and debt collection/credit reference agencies had five. The year also saw 688 licence applications withdrawn following challenge from the OFT, 284 warning letters issued and 113 Minded to Revoke notices.

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 and applying for licences. Some offences taken into consideration in the refusal or revocation of licences during 2002 included 'clocking' car odometers, forging documents, making false trade descriptions, taking monies without permission, breach of contract, drug offences, receiving stolen goods and supplying false information on licence applications.

In considering fitness the OFT can take into account a number of factors including:
- any offence or conviction connected with 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 practices
- evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

John Vickers, Director General of Fair Trading, said:
"Borrowers need protection from unfit traders. Where we have evidence that traders are unfit to operate in the credit market we will use our powers to refuse or revoke their licence to carry out consumer credit business."

Licences were refused in respect of:
- eight motor dealers
- six financial services providers
- five debt collection/credit reference agencies
- two furniture and electrical goods retailers
- two beds retailers
- two plumbing and heating installers
- one vehicle repairer
- one credit provider
- one paving installer
- one computer retailer
- one property agent
- one dating services provider
- one hearing aid retailer
- one security systems installer.

Licences were revoked in respect of:
- eleven motor dealers
- eight financial services/mortgage brokers
- one vehicle rental company
- one pawnbroker
- one plumbing and heating installer
- one beds retailer
- one funeral services business
- one home improvements company
- one marketing sales provider.

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. Guidance for holders of consumer credit licences can be found on the OFT website at www.oft.gov.uk. The OFT has also produced sector specific guidance for debt management companies and is currently consulting on guidance for debt collectors detailing examples of behaviour that would lead to a licensee's fitness being called into question. (See PNs 48/01 and 82/02)

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. Applications for licences and applications to renew licences that were refused in the final quarter of 2002 between October and December 2002 are as follows:
Castle Asset Management Ltd, credit broker, Rainham, Essex - 506625 Arthur Matthew Clarke, trading as Clarke's Furnishings;
AMC Motors, AMC Coachworks, furniture wholesale/motor trade, Prudhoe, Northumberland - 511763
Alfredo Fitzgerald Douglas, credit broker, Sheffield - 515644 Barry David White, t/a Premier Collection Services, debt collector, Birkenhead, Merseyside - 495380
Grange Investigations, debt collector, Liverpool - 501784 Lumbamatic Commercial Ltd, electrical beds retailer, Leeds - 499447 Paul Adrian Smith, hearing aid retailer, Doncaster, South Yorkshire - 519602
B Safe Security Systems Ltd, security systems installer, Chesterfield, Derbyshire - 517254
Price Buster Furniture Ltd, furniture and electrical goods retailer, Darlington, Co Durham - 505850

7. Licences revoked in the final quarter of 2002, between October and December are as follows:

Iqrar Masih, mortgage broker, Newport, Gwent - 464467
Mortgage Wise (Midlands) Ltd, mortgage broker, Birmingham - 462016 David Barry Richardson, mortgage broker, York - 282788
Lumbamatic Ltd, electrical beds retailer, Leeds - 478696 Cassian William Newbrook, motor dealer, Bishops Stortford, Herts - 484960
Purecall Ltd, marketing sales - Leeds - 507244
1st Action Maintenance Ltd, plumbing and heating, London - 435333 Sean Antony Fogg, pawnbroker, Sheffield - 489053

8. Full details of licensees who can still appeal against the decision to revoke, or to refuse to renew, their licences are as follows:
Swan Garage (Bosham) Ltd, motor dealer, Chicester, West Sussex - 063555
Larry John Barreto, financial services, Nottingham - 506883

9. Please see PN70/02 for details of adverse determinations in the first three quarters of 2002.

10. In this press release the functions of the Director General of Fair Trading (DGFT) under the Act are for simplicity described as the functions of "the OFT". The Enterprise Act 2002 will replace the office of the DGFT with the OFT, to which will be transferred the DGFT's functions. The relevant provisions of the Enterprise Act are not yet in force.

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