The Office of Fair Trading has used its power to suspend a credit licence for the first time.
The watchdog has today suspended the consumer credit licence of Staffordshire-based Donegal Finance Limited, which traded as Donegal Finance, Donegal Investigations and Donegal Recovery.
The OFT concluded that suspending DFL’s licence is “urgently necessary to protect consumers”, but said it could not expand on why it had decided to suspend its licence at this time.
DFL was licenced to offer consumer credit, credit brokerage and debt collecting services. The suspension means it is now a criminal offence for DFL or any of its directors, employees or agents to engage in any of these activities using DFL’s licence.
The firm has been invited to present its defence to the OFT. The OFT’s adjudicator will take this into account and decide whether to confirm the suspension or withdraw the licence altogether.
The suspension ends 12 months from 17 June, unless the OFT decides to withdraw DFL’s licence.