OFT issues new guidelines on credit licences

Guidance to motor dealers preparing to lodge applications for consumer credit licences has been issued by the Office of Fair Trading, following a spate of recent refusals.

The office has warned that when considering an applicant’s suitability for a credit licence, it takes into account any record of offences of violence or dishonesty, prior failings to comply with any consumer protection legislation including the Consumer Credit Act, evidence of unfair business practices or discrimination and any existing or previous complaints lodged by consumers.

In the latest case, Plymouth car dealer Colin Andrew Boundy’s application was rejected when the office discovered he had been jailed following conviction of two counts of tax evasion in 2002.

The OFT says in his application, Boundy attempted to mislead it by falsely claiming he had been exonerated by the judge and was guilty only by association with his ex-wife.