Payday loan company’s licence revoked

Posted by Mgbenka at Tuesday, April 10, 2012 |

Credit broker Yes Loans has had its licence revoked by the workplace of honest Trading (OFT) over concern that its business practices ‘deceitful and oppressive’.

Two associated businesses, Blue Sky Personal Finance and cash Worries restricted, have additionally been found to be unfit to carry a client credit licence.

Following a long-term investigation, the OFT revealed that Yes Loans sold expensive payday loans to some customers rather than the product they'd enquired regarding.

It additionally misled some customers into believing it had been a loan supplier instead of a credit broker and duped customers into revealing their card details by claiming they were required for security checks.

The decision to revoke Yes Loans’ licence was welcomed by client teams.

A joint statement by the corporations said: “We have all worked tirelessly to implement important and basic advancements to the companies.

“We are disappointed that, despite recognising this, the OFT has set to revoke the licences of 3 long-standing businesses, which offer a loans brokerage service and different personal monetary services to several thousands of happy customers.

“We are currently taking recommendation with regard to lodging an attractiveness against the choice. No jobs are in danger inside the businesses involved, no matter the end result of any attractiveness.

“Currently and throughout any appeals method, our licences stay valid and permit us to still trade.”

A new report by MPs claims that payday loan corporations are ‘opaque and poorly regulated’.

With household incomes beneath increasing pressure from the high value of living, high levels of unemployment and therefore the government’s ongoing austerity live, the utilization of Payday Loans has soared.

Despite this, the Business, Innovation and Skills (BIS) Committee said that tiny progress has been created to handle areas of concern that were raised a year ago.

Adrian Bailey MP, chairman of the BIS committee, said: ‘We should make sure that this business adheres to the best standards through the codes of observe that are currently being developed or by the new regulator’.