Doorstep lender's credit licence refused

01/10/2009

The Office of Fair Trading has turned down an application for a consumer credit licence from U-Turn Financial Solutions.

Following an investigation with Kent Trading Standards Service, the OFT rejected the application because of a number of issues concerning one of the firm's directors, Andreas Haralambous.

Mr Haralambous had run several businesses in the past and consistently failed to comply with the rules governing the market, including running an unlicensed company and engaging in irresponsible lending and threatening behaviour.

The OFT also found that he failed to comply with important legal requirements about the form and content of credit agreements, as well as ignoring debt collection guidance by charging people excessive amounts for non-payments.

According to the OFT's director of consumer credit, Ray Watson, Mr Haralambous showed in the past a serious disregard for the welfare of consumers and that his unfair business practices mean that he is not suitable for a licence.

Debt solutions firm EuroDebt says the recession has seen rising profits for pawn brokers and off-high-street lenders, often at very high interest rates.

In many instances, people are using a higher interest credit facility to repay another credit facility. This is the start of a debt spiral that is very difficult to break. People struggling with debt should take professional advice.

Help with debt is at hand and should not involve further borrowing. EuroDebt offer an all-round advice model, not only Debt Management Plan'>Debt Management Plans and IVAs, but also solutions for the more vulnerable which may involve a referral to a local CAB or a competent authority for a Debt Relief Order.

• Share
• 
• 
• Store
• 
• Follow
•