Reddy Corporation Ltd has had its credit licence revoked by the Office of Fair Trading (OFT).
The licence was revoked after companies associated with Reddy and its owner, Dharam Prakash Gopee, were found to have engaged in widespread unlicensed trading. Reddy Corporation was based in Forest Hill.
The associated businesses included Ghana Commercial Bunks (now known as Ghana Commercial Finance), Barons Finance and Barons Bridging Finance plc. Another associated business, Barons Bridging Finance 1, also had its application for a licence refused.
They were also found to have engaged in unfair and improper business practices, including entering into credit agreements which were not in the correct legal form. For example, the agreements did not include all the information required to make sure consumers were aware of the risks and obligations they were taking on, including the necessary information on charges that were payable.
The appeals process expired on 18 August 2012 and Reddy no longer has a consumer credit licence and can no longer provide credit to consumers.
“Reddy and businesses associated with it were found to be treating the requirements of the Consumer Credit Act as discretionary and were engaging in widespread unlicensed trading,” said Kate Pitt, the OFT’s deputy director of credit.
“This behaviour does not demonstrate the competence and integrity we require of businesses that offer credit to consumers.”