The Office of Fair Trading (OFT) has taken action against three more debt management businesses.
The regulator has acted to stop London-based Money Advice Direct Limited (MADL) using its existing trading name, ‘The UK Insolvency Helpline’ and the proposed domain names that include the word ‘helpline’ because the names fail to make clear to consumers the commercial nature of the business.
MADL, which retains its consumer credit licence, has appealed against the OFT’s above decision to vary its licence and the refusal to grant its variation licence application.
The OFT has revoked the licence of Prime Legal and Financial Services (PLFS) of Mile End, London for failing, amongst other matters, to demonstrate the necessary skills, knowledge or experience to hold a consumer credit licence. Midlothian-based Deric Hamilton Oliver’s application for a licence was rejected partly because he gave the OFT false information.
The OFT found that Hamilton Oliver had provided debt management services even though he was aware he did not have a licence and demonstrated a serious lack of integrity which made him unfit to hold a licence.
Prime Legal and Financial Services (PLFS) failed to demonstrate the expected level of competence needed to operate in this industry. The OFT considered that PLFS did not have the necessary skills, knowledge or experience to advise consumers on debt management matters, and also that it didn’t have appropriate business practices and procedures in place.
Since the OFT’s compliance review a year ago, 61 businesses have had their licence revoked, or have surrendered their licence, or had an application refused.
David Fisher, the OFT’s director of consumer credit, said: “We expect commercial debt management businesses to meet the standards that we set out in our guidance. If they do not
