The OFT has imposed requirements on the consumer credit licence of Post Net Ltd and its associates Haymarket Lending Ltd, Financial Processing UK Ltd, and RG Debt Management Services Ltd.

It also trades under the names Advantage Loans, Credit Gain Services, Tenant Loans and Loanfinder UK.

Post Net is an unsecured loan broker to people having difficulty getting a loan from a prime lender, often because of a poor credit rating or employment history.

An investigation by the OFT found that Post Net was misleading customers by falsely guaranteeing access to credit. The company was also failing to properly refund fees to customers when it was unable to broker suitable credit.

Customers who use a broker and do not accept the credit offered, no matter what the reason, are entitled to a refund less £5. Those customers that accept the credit but terminate the contract within the 30-day cancellation period are entitled to a full refund.

The OFT’s requirements stipulate that Post Net and its associated companies must not mislead consumers by falsely guaranteeing credit or stating that consumers have been pre-approved for credit agreements. In addition, they must fully disclose the terms of the application before obtaining an arrangement fee, and refund customers who cancel agreements within a 30-day period.

A breach of a requirement can lead to a fine of up to £50,000 and may lead to action to revoke the licence.

Ray Watson, OFT director of consumer credit, said: “The OFT investigation gave rise to serious concerns with some of Post Net’s business practices. We will monitor these requirements closely and will not hesitate to take further action if necessary.”””