Three debt management companies have had action taken against them by the OFT as part of the regulator’s ongoing enforcement work.
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, we will take action as we have demonstrated here.”
The regulator has revoked the licence of Prime Legal and Financial Services (PLFS), which is based in London’s Mile End, after it failed to demonstrate the necessary skills, knowledge or experience to hold a consumer credit licence and advise consumers on debt management matters. According to the supervisory body, the company did not have appropriate business practices and procedures in place.
The OFT also took action to stop Money Advice Direct Limited (MADL), also based in London, from using its existing trading name ‘The UK Insolvency Helpline’ and the proposed domain names which also include the word ‘helpline’. The OFT stated that the names fail to make it clear to consumers that the business is of a commercial nature. 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 third debt management company which has had action taken against it by the regulator is Midlothian-based Deric Hamilton Oliver’s company – his application for a licence was rejected in part because the information he gave the OFT was false. The OFT found that Mr. 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.
David Fisher continued, “Revised debt management guidance, which is due to be published before the end of the year, will give even greater clarity as to the standards that the OFT expects of businesses that it licenses in this sector.”
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