New powers to speed up suspension of credit licences to protect consumers

The Government has announced that the Office of Fair Trading is to be given new powers to suspend the consumer credit licences of rogue credit, loans and debt collection agencies.

Currently the OFT can suspend or revoke a consumer credit licence when there is an urgent need to protect the interest of consumers.  However businesses can continue to trade if they decide to appeal against the decision, which can take up to two years. 

The Government has announced that the Office of Fair Trading is to be given new powers to suspend the consumer credit licences of rogue credit, loans and debt collection agencies.

Currently the OFT can suspend or revoke a consumer credit licence when there is an urgent need to protect the interest of consumers.  However businesses can continue to trade if they decide to appeal against the decision, which can take up to two years. 

The OFT intends to consult in the autumn on how it will use this power, and will publish guidance in early 2013 before the power comes into effect.

For more information, go to:

http://news.bis.gov.uk/Press-Releases/New-power-strengthens-consumer-credit-protection-67d53.aspx

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