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    The OFT gets it's claws out.

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    papa_umau
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    The OFT gets it's claws out.

    Post by papa_umau on Fri 09 Mar 2012, 1:09 pm

    We, on this website have been writing about the dangers associated with the "pay-day" loan companies that are springing up so fast on and off the internet and at last we are seeing that the OFT has started to get a grip on these chancers.

    Here is a report on this subject that was published today:

    Three payday loan companies lose their licences !

    PAYDAY loan firms Yes Loans, Blue Sky Personal Finance and Money Worries Limited, have been deemed by the OFT as unfit to hold consumer credit licences and have had their licences revoked after using "deceitful and oppressive business practices", the trading watchdog said today.

    Yes Loans arranged expensive short-term loans for some consumers rather than the products they were initially asking about and misled consumers into believing it was a loan provider rather than a credit broker, the Office of Fair Trading (OFT) found.

    The broker, ( one of the biggest of its kind in the UK ), used "high pressure" sales tactics to persuade consumers to give their card details on the false premise that they were needed for security checks, the watchdog said.

    Yes Loans also deducted brokerage fees without making it clear that a fee was payable and sometimes did this without customers' consent.

    The watchdog has decided that two associated businesses, Blue Sky Personal Finance and Money Worries Limited, are also unfit to hold a consumer credit licence.

    Yes Loans "belatedly" made some changes to the way it operated following an OFT investigation, including no longer charging fees up front. But the watchdog said 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".

    David Fisher, director of consumer credit at the OFT, said: "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."




    And quite right too as these payday loans groups are virtually loan-sharks in everything but the ways that they do their business in the public eye.


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    zathrus
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    Re: The OFT gets it's claws out.

    Post by zathrus on Sat 10 Mar 2012, 12:38 pm

    Nice one Paps. I have been watching these flyboys popping up on the TV time and time again and I was wondering when the OFT would get a grip on them.

    Have you noticed that all of them charge an interest rate of over 1700% APR for these loans. I would not touch any one of them with a bargepole.
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    Hell's Granny
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    Re: The OFT gets it's claws out.

    Post by Hell's Granny on Sat 10 Mar 2012, 2:07 pm

    YES loans are also run by a person who is banned from being a director af a company. I heard today on the radio that the company is appealing, which means they'll continue trading for another two years at least!

    Cheers, HG
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    papa_umau
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    Re: The OFT gets it's claws out.

    Post by papa_umau on Sun 11 Mar 2012, 12:52 pm

    Thanks for the info' HG and after a wee search I found that you are quite right.

    The Sun reported that after having their licence to trade revoked they appealed and while on appeal they are going to be allowed to keep trading.

    See the story HERE.

    I too think it is ridiculous that any company that has been seen to be trading fraudulently can keep on doing it while they appeal. The powers of the OFT need strengthening so that this does not happen again.


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    zathrus
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    Re: The OFT gets it's claws out.

    Post by zathrus on Thu 15 Mar 2012, 12:49 pm

    That's appalling Paps.

    It seems crazy to me that they should be allowed to keep trading while they are accused of being crooks.

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