Debt Management Firm Refused Credit Licence

Thu, 16 Jul 2009

A Lancashire-based debt management business has had an application for a consumer credit licence turned down by the Office of Fair Trading (OFT).

An OFT adjudicator decided that A&H Debt Dissolvers Ltd (A&H) was not fit or competent to hold a credit licence due to a number of issues.

It found that the company had committed an offence by offering debt management services without holding a licence and had failed to demonstrate the competence necessary to carry on a debt management business.

The firm had also failed to comply with the OFT's debt management guidance as it made a number of misleading debt help statements on its own website and on the site of an associated company, crunchyourcredit.co.uk. The OFT said A&H was also not clear regarding fees.

Ray Watson, OFT Director of Consumer Credit, said: "Unlicensed trading is not acceptable. It poses real risks of harm to consumers and denies them effective protection under the law ."

"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."
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