Cracking down on businesses involved in customer credit within the financial sector, the OFT took action against Midwest Mortgage Management Financial Services by refusing it a licence along with
Laurence Werner, Harjit Singh Sahota and Peter Collinson, who are all involved in financial services.
Aberdeen Independent Financial Advice Ltd and Jacksons Ltd property agents were also penalised by the OFT and account for two of only nine companies to have their licence revoked so far in 2005. However, Jacksons Ltd will be appealing against the OFT ruling.
Christine Wade, director of consumer regulation and enforcement at OFT, said: “In 2005 we have seen an increase in the number of licences being refused on the same six-month period last year. In the first half of this year 32 consumer credit licences were refused compared to 15 in the same period last year.”
Ken Sives, senior partner of Sives Financial Services, said it is right that the OFT is biting back and tackling companies that do not adhere to the strict regulations.
“You have to be whiter than white in the financial industry because of all the regulations but if you are doing something wrong then it is right that you have your licence taken away.”
While many of the actions resulted failure to comply with consumer protection legislation, such as listing false advise, failing to comply with the Consumer Credit Act, or taken as a result of customer complaints, some of the actions against the 417 firms came as a result of more criminal activity including possession of drugs and firearms, handling stolen goods, money laundering and theft of property.
