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Article Date:	04/08/2006
Article Title:	OFT gets tough on consumer credit licences
A further 17 consumer credit licence applications were refused and three existing licences were revoked following 485 licensing actions by the Office of Fair Trading for the first half of this year. The OFT also published 51 minded to revoke or refuse notices and issued 107 warning and advisory letters. Under the Consumer Credit Act, 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 kidnapping, causing grievous bodily harm, fraud, conspiracy to supply controlled drugs, handling stolen goods, and breaches of the trades descriptions act and the consumer credit act. In considering fitness, the OFT considers consumer complaints, regulatory failures and evidence of unfair business practice. Out of the 17 licence which were withdrawn one related to a financial advisor with a further three related to credit providers ranging from pawn broking to mortgages. However, motor dealers made up the lion’s share with eight revocations.