OFT Consumer credit licence quarterly update

file_wizzard

Thought the following may be of interest to some of you who deal with DCA's

Apparently the OFT take a dim view of licence holders who breach the following;

" possession of a firearm without a certificate, assault, applying false trade descriptions to goods, false imprisonment, obtaining property by deception, receiving stolen goods, and possession of a controlled drug with intent to supply"

But no revocations this quarter for breaches of S 78. of the Consumer credit act !!!

Keep those complaints rolling in !

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318 licensing actions carried out by OFT

207/05 2 November 2005

The OFT has conducted 318 licensing actions in the third quarter of 2005.
The OFT refused eight consumer credit licence applications and revoked six existing licences between 1 July and 30 September.

Another 193 applications were not pursued after further enquiries to the applicant. There were 37 minded to revoke or refuse notices issued in the period in addition to 74 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 possession of a firearm without a certificate, assault, applying false trade descriptions to goods, false imprisonment, obtaining property by deception, receiving stolen goods, and possession of a controlled drug with intent to supply.

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 ethnic/national origin.
Christine Wade, Director of Consumer Regulation and Enforcement said:

'Credit is a key area of work for the OFT and licensing is an essential part of ensuring that this market works well. In 2005 we have seen an increase in the number of licences being refused or revoked on the same nine month period last year. In the first nine months of this year, 55 consumer credit licences were refused or revoked compared to 39 in the same period last year'.

So far in 2005, 1,072 licensing actions have been conducted: 40 applications have been refused; 15 licences revoked, 113 minded to revoke or refuse notices issued, 197 warning/advisory letters issued, and 707 applications were not preceded with following further enquiries to the applicant.