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OFT to revoke Yes Loans’ licence

The Office of Fair Trading has decided that Yes Loans, one of the UK’s largest brokers of unsecured credit, is unfit to hold a consumer credit licence.

It has also taken action against two associated businesses, Blue Sky Personal Finance Limited and Money Worries Limited.

The decision to revoke the licences was taken in light of evidence that Yes Loans has failed to comply with the Consumer Credit Act 1974 and associated regulations, and with requirements previously imposed by the OFT.

The OFT found evidence that Yes Loans had engaged in unfair business practices, including:

  • using high pressure sales tactics to persuade consumers to provide their debit or credit card details on the false premise that they were required for an identity and/or security check
  • deducting brokerage fees without making it clear that a fee was payable, and/or without the consumer’s consent
  • failing to introduce some consumers to the product originally sought, frequently arranging short-term, high interest, loans instead
  • misleading consumers into believing it was a loan provider rather than a credit broker
  • treating customers poorly by not providing refunds in a timely manner.

Following the OFT’s investigation, Yes Loans made a number of changes to how it operates, including no longer charging upfront fees.

A number of other associated companies also surrendered or withdrew their consumer credit licences or applications.

Despite these changes, the OFT determined 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, says: ’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.”

The company is not in any way connected to Y3S Loans in Cardiff.

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  • anon2 8th March 2012 at 7:23 pm

    The only thing wrong about this is that the OFT took too long. Makes banks look sinless

  • CityBoy 8th March 2012 at 3:57 pm

    Good riddance to them. the sooner the FSA regulate these non secured loan sharks the better.

  • We're all doomed!! 8th March 2012 at 3:57 pm

    “Can we assume however the same rules will be applied to the banks?”

    Well, anon, if they are, then there will be no action taken, as much as we all dislike the Banks – I do not think they have commited the offences highlighted in this artical!!!

  • D 8th March 2012 at 3:03 pm

    Quite right for the OFT to take this action. Can we assume however the same rules will be applied to the banks ?

  • Peter Turner 8th March 2012 at 1:19 pm

    So no loans from Yes Loans then

  • Tom rees 8th March 2012 at 12:54 pm

    Great news for the loan industry, it is a shame the OFT did not close down Yes Loans when they investigated them in 2009. Many more people have been ripped off in the last three years, and the Chorlton family have made millions preying on vunrable people. I hope the OFT move to ban all upfront fee charging brokers!!!

  • Kevin Vella 8th March 2012 at 12:32 pm

    Yes loans are now No loans then. Can imagine many of the payday /short loan companies who charge 2000% upwards maybe a tad worried today.