OFT revokes licence of controversial payday advance lender

The Office of Fair Trading has acted to revoke the credit license of Yes Loans, a controversial payday advance broker that the watchdog accused of engaging in business practices that are both ‘deceitful and oppressive,’ according to instant cash loan experts familiar with the case.

The OFT discovered during the course of an investigation that the short term loans broker had been encouraging borrowers to take out financial products that carried high costs in lieu of the lending these borrowers initially sought.  Other evidence was uncovered that borrowers were misled by Yes Loans as to its identity as a credit broker, instead leading customers to believe that it was a loan provider.

The firm is permitted a period of 28 days in which to file an appeal against the decision of the OFT.  The directors of Yes Loans issued a press release in which they stated their intention to continue to trade during the appeals process, as their credit licences permit them to do so.

The firm, which was one of the largest payday lenders in the UK, had been attracting massive volumes of complaints from borrowers for its massive interest rates and sharp practices.  The OFT issued a stern admonition to Yes Loans in 2011, warning it that the lender could face losing its credit licence if it failed to clean up its act, and with Yes Loans continuing in their unethical trading standards undiminished, the watchdog took action against the broker after an additional investigation found that Yes Loans employed ‘high pressure’ sales tactics in order to trick customers into giving up their card details under false pretenses.

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