View more on these topics

OFT to revoke Yes Loans’ licence

The Office of Fair Trading has decided that Yes Loans, one of the UK’s largest brokers of unsecured credit, is unfit to hold a consumer credit licence.

It has also taken action against two associated businesses, Blue Sky Personal Finance Limited and Money Worries Limited.

The decision to revoke the licences was taken in light of evidence that Yes Loans has failed to comply with the Consumer Credit Act 1974 and associated regulations, and with requirements previously imposed by the OFT.

The OFT found evidence 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 and/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
  • treating customers poorly by not providing refunds in a timely manner.

Following the OFT’s investigation, Yes Loans made a number of changes to how it operates, including no longer charging upfront fees.

A number of other associated companies also surrendered or withdrew their consumer credit licences or applications.

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.

OFT director of consumer credit David Fisher says: ’We will take decisive action to tackle businesses that fail to treat people properly, especially the most vulnerable.   

“This action also makes it clear that belatedly changing business practices when facing the prospect of enforcement action by the OFT does not make a company fit to hold a credit licence.”

/the OFT stressed the company is not connected to Y3S Loans in Cardiff.

Recommended

F&C set to close Thames River world government bond fund

Thames River is set to close its world government bond fund by March 31 after its one client decided it no longer wanted to invest in this area following a review of its asset allocation. The £82.4m Thames River world government bond Fund was launched on November 12 2008 and is an Irish open-ended investment […]

Aviva committed to UK “hook, line and sinker”

Aviva has committed to retaining its UK headquarters despite EU plans to increase capital requirements through Solvency II. Earlier this month, Prudential said it was considering switching domicile as part of a range of options to “maximise the strategic flexibility of the group”. The provider said: “This includes consideration of optimising the group’s domicile, including […]

3

Claims firms set their sights on interest-only

Claims firms are believed to be targeting interest-only borrowers, as data from the Financial Ombudsman Service reveals mortgage complaints rose by 38 per cent in the second half of 2011. There were 4,194 mortgage complaints in the period compared with just 2,989 in the first half of the year. But only 28 per cent of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. It’s the sign of desperate times when so many people are driven to short-term borrowing at exorbitant rates of interest. Feeding off this desperation are the payday lenders, many of them American companies who were banned in their home states; so here they come, looking for more of the poor to impoverish.

    Yet, if they charged reasonable rates and behaved more honourably, these payday lenders could offer a useful service to society. Unfortunately, that’s unlikely to happen without better regulation and stricter licensing.

    I was the victim of identity theft when one payday lender carelessly allowed someone pretending to be me borrow money in my name. It took several stressful weeks to sort out. I’ve now uploaded to my YouTube channel at EyesEars.com videos about what happened.

  2. Hopefuly Wentworth will be next

Leave a comment