OFT Revokes Consumer Credit Licences

On 8 March 2012, the Office of Fair Trading announced its decision to revoke the consumer credit licence of Yes Loan Limited, and of two associated business – Blue Sky Personal Finance Limited and Money Worries Limited. The decision was made as a result of evidence that Yes Loans has failed to comply with the Consumer Credit Act 1974 and associated regulations, and with additional requirements that had been previously and specifically imposed by the OFT.

The OFT reported that Yes Loans had engaged in unfair business practices, including:

• using high pressure sales tactics to persuade consumers to provide their debit or credit card details on the false premise that they were required for an identity or security check;
• deducting brokerage fees without making it clear that a fee was payable, and/or without the consumer's consent;
• failing to introduce some consumers to the product originally sought, frequently arranging short-term, high interest, loans instead;
• misleading consumers into believing it was a loan provider rather than a credit broker; and
• treating customers poorly by not providing refunds in a timely manner.

Following the OFT's initial investigation, Yes Loans had made a number of changes to how it operates. Despite these changes, the OFT determined that the evidence of prolonged engagement in deceitful and oppressive business practices, and the continuing presence of some of the staff responsible for running the businesses, makes them unfit to hold a consumer credit licence.

Published on 09/03/2012