OFT’s refusal of credit licence upheld on appeal

Published on

The Consumer Credit Appeal Tribunal has upheld the OFT’s refusal to grant a credit licence to a debt management company, Qsolvency Ltd, because it had insufficient skills, knowledge and experience in the running of a consumer credit business.

The OFT found that Qsolvency had failed to demonstrate the competence necessary to carry on a debt management business and failed to comply with the OFT’s debt management guidance. The OFT also found that Qsolvency was engaged in unlicensed trading before it had obtained a licence.

Qsolvency’s website www.online-debt-advice.co.uk, which has now been taken down, contained content that the OFT and the Tribunal concluded showed the company did not have the skills, knowledge and experience necessary to obtain a licence.

The OFT was particularly concerned that the company only required a small amount of information about the consumer’s individual circumstances before providing instant, automated debt advice, which included advising the consumer to declare him/herself bankrupt.

Ray Watson, director of the OFT’s Consumer Credit Group said: “We welcome the decision of the Consumer Credit Appeals Tribunal supporting our refusal to grant a licence. Debt management is a high-risk activity involving people in serious financial difficulty and distress. It is vital that all those who operate or seek to operate within this market are able to meet the minimum standards set by the OFT for this sector.”””

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Spring surge in property listings creates market opportunities

The average asking price for newly listed properties has risen by 1.1% (+£3,876) this...

Secure Trust Bank Commercial Finance appoints senior portfolio director

Secure Trust Bank Commercial Finance (STB CF) has announced the appointment of Carl Pykett...

Inflation expectations rise slightly as BoE releases latest survey

Public expectations for inflation and interest rates have edged higher, according to the Bank...

£1 billion lost annually as 50,000 London social homes used fraudulently

A shocking new report reveals that around 50,000 social housing properties in London are...

Other news

Spring surge in property listings creates market opportunities

The average asking price for newly listed properties has risen by 1.1% (+£3,876) this...

Secure Trust Bank Commercial Finance appoints senior portfolio director

Secure Trust Bank Commercial Finance (STB CF) has announced the appointment of Carl Pykett...

Inflation expectations rise slightly as BoE releases latest survey

Public expectations for inflation and interest rates have edged higher, according to the Bank...