A & H Debt Dissolvers Ltd (A & H) had committed an offence by offering debt management services whilst unlicensed. As well as engaging in unlicensed trading, the OFT found A & H had failed to demonstrate the competence necessary to carry on a debt management business and failed to comply with the OFT's debt management guidance, including by making a number of misleading website statements and by not being transparent regarding fees.
A & H had misleadingly advertised 'free help and advice' and 'expert advice' to consumers with serious debt problems through its own website www.ahdebtdissolvers.co.uk, and the website of an associated company, www.crunchyourcredit.co.uk. These websites have now been closed down.
An OFT adjudicator decided that the company was not fit or competent to hold a consumer credit licence and therefore the application was refused.
Ray Watson, OFT Director of Consumer Credit, said: 'Where businesses show themselves to be unwilling to comply with their legal obligations and to lack competence to engage in credit activities we will take all necessary action to ensure consumers are protected. Unlicensed trading is not acceptable. It poses real risks of harm to consumers and denies them effective protection under the law.'
