One instant cash loan broking firm that made the news recently when the Office of Fair Trading chose to revoke its consumer credit licence announced recently that it will not be pursuing an appeal to the OFT’s decision, experts say.
Yes Loans, which up until now had been one of the largest and most influential payday advance lending brokers operating in the UK, was found to have been using ‘high pressure’ sales tactics, misleading its customers, and taking fees without consumer consent, according to the OFT’s investigation. The regulatory body also made the determination that Money Worries and Blue Sky Personal Finance, two firms affiliated with Yes Loans, to be unworthy of holding their own credit licences as well.
Company directors had a total of 28 days in order to file an appeal against the three decisions. However, out of the three revocations, only one – Money Worries – will be contested, and the licences of both Blue Sky Personal Finance and Yes Loans are no longer valid, leading both companies to cease offering broking and fulfillment of short term loans to its customers.
Company directors stated that they were both disappointed and saddened, but remarked that their decision to contest only one out of three revocations handed down by the OFT should not be seen as an acceptance of the watchdog’s decision. However, the OFT said that it had uncovered evidence implicating Yes Loans in inherently unfair business practices, such as arranging high interest short term loans for its customers instead of what they had originally been searching for, charging and deducting fees from consumers’ bank accounts without consent without clearly stating that there were fees to be paid, and using sales tactics in order to entice customers to hand over the details of their credit and debit cards by falsely claiming hey were a requirement for a security and/or identity check.
Yes Loans was also found guilty of misleading prospective customers into letting them believe that the company was not a credit broker but a loan provider in their own right. They were also found to have been treating their customers badly by neglecting to carry out timely refunds to consumers as well.