OFT gets tough with credit broker
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The Office of Fair Trading has imposed requirements on Nasser Mohammed Yusuf, a Manchester-based credit broker and debt management provider.
The requirements oblige Yusuf, who uses trading names such as Advance Money Management and Loans 4 U, to refund brokerage fees to consumers where no loan has been provided.
The OFT has also told Yusuf he must comply with its Debt Management guidance and implement adequate complaints handling procedures.
The OFT can impose requirements on a credit licensee when it has concerns over a licensee’s business practices or compliance with specific consumer protection legislation.
Failure to comply with requirements can lead to further action by the OFT and the imposition of financial penalties of up to £50,000 per breach.
Nigel Cates, deputy director of the OFT’s Consumer Credit Group, says: ’It is important that all companies, especially those dealing with consumers facing financial difficulty, comply fully with the standards expected of them. “The OFT will use its powers to ensure that consumers receive a proper standard of customer care and do not suffer detriment as a result of the behaviour of licensed businesses.”
