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Mortgage firm director banned for eight years

Mortgage firm director Matthew Richard Sixsmith has been banned from being a director for eight years after allowing his disqualified father to manage his brokerage.

Bolton County Court found that Sixsmith had allowed his father, Richard Sixsmith, to act in the management of mortgage brokerage Bridgewater House UK, despite having been disqualified for eight years in April 2005 because of misconduct at The Mortgage Practice.

Bridgewater House UK entered liquidation on September 8 2009 with a deficiency to creditors of £317,437.

The disqualification came after an investigation by The Insolvency Service and means Sixsmith cannot manage, control or be a director of a company until 2020.

In a separate incident last week, the Office of Fair Trading announced that it is revoking the consumer credit licence of Yes Loans, one of the UK’s largest brokers of unsecured credit.

It is also removing the licences of two associated firms, Blue Sky Personal Finance and Money Worries.

The OFT found Yes Loans guilty of using high pressure sales tactics, deducting brokerage fees without permission and failing to recommend to some consumers the product originally sought, instead arranging short-term, high interest loans for them.

Following the OFT’s probe, Yes Loans made a number of changes to how it operates, including getting rid of upfront fees.

But the OFT determined that the evidence of prolonged engagement in deceitful and oppressive business practices and the continuing presence of some staff responsible for running the businesses, makes Yes Loans unfit to hold a consumer credit licence.

David Fisher, director of consumer credit at the OFT, says: “This action makes it clear that belatedly changing business practices when facing enforcement action by the OFT does not make a company fit to hold a credit licence.”

Yes Loans is not in any way connected to Y3S Loans in Cardiff.

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