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OFT revokes Yes Loans’ consumer credit license

By  |  March 8, 2012

The OFT has decided to revoke the licenses of Yes Loans and its two associated businesses, Blue Sky Personal Finance and Money Worries. Yes Loans is one of the U.K.’s largest brokers of unsecured credit.

The OFT found Yes Loans unfit to hold a consumer credit license because its unfair business practices violate the Consumer Credit Act 1974 and 2009 OFT-imposed requirements on the license. Such practices include high-pressure sales tactics for customer debit/credit card details and deducting brokerage fees without clear disclosure or consent. Although Yes Loans made changes to its operations, the OFT felt that “belatedly changing business practices when facing the prospect of enforcement action by the OFT does not make a company fit to hold a credit license,” according to OFT Director of Consumer Credit David Fisher.

Full content: OFT Press Release

 

Related content: Interactions between Competition and Consumer Policy (Mark Armstrong, University College London)