The Office of Fair Trading (OFT) has taken enforcement action against three debt management firms as part of ongoing action in the sector.London-based firm Money Advice Direct is now unable to trade under the name ‘The UK Insolvency Helpline’ or use domains including the word ‘helpline’ in the name, as the commercial nature of the business is not clear.
The OFT has also revoked the licence of Prime Legal & Financial Services of Mile End, London for failing to adequately demonstrate the knowledge, experience or necessary skills required to hold a consumer credit licence.
In a separate case Deric Hamilton Oliver of Midlothian, Scotland, had his application for a consumer credit licence rejected after lying on his OFT application.
David Fisher, director of consumer credit at the OFT, said: “Revised debt management guidance, which is due to be published before the end of the year, will give even greater clarity as to the standards that the OFT expects of businesses that it licenses in this sector.”
Since the OFT’s compliance review a year ago, 61 businesses have now had their licence revoked, surrendered their licence, or had an application refused, out of 129 firms which were warned.