The Office of Fair Trading (OFT) has secured a conviction against London North Securities Limited (LNS) at Southwark Crown Court for trading without a consumer credit licence between March 2007 and February 2010.
The conviction follows an OFT investigation into the activities of LNS.
LNS was ordered to pay £400,000 under a confiscation order money that will be used to compensate up to 56 customers of LNS, with payments ranging from a few hundred pounds to £50,000.
LNS is also required to remove approximately 70 charges that secured debts on borrowers’ properties.
In passing judgment Judge Rivlin, the Recorder of Westminster, said that the way LNS continued to vigorously chase debts while knowingly unlicensed involved “very serious instances of unfair and oppressive business practices”” and that it was “”not difficult to imagine the distress and aggravation suffered by those subject to demands””