Tuesday 11:15
The OFT has decided to refuse an application for a consumer credit licence from a direct marketing firm based in Basingstoke. This decision will not take effect until after an appeal process (see note 6).
G-Tec Information Solutions Ltd has had its application for a credit licence turned down on the grounds that an associate company of the applicant had been found by the Independent Council for the Supervision of Telephone Information Services (ICSTIS) (note 1) to, among other things, have run a misleading premium rate competition that claimed the recipients had won prizes worth £2000. ICSTIS fined the associate £100,000 and banned it from running any other phone competitions for 12 months. The persons running these associate companies were the same at the time the application was made.
The adjudicator found that the conduct of the associated company amounted to an unfair and improper business practice. For these reasons the adjudicator decided to refuse the application for a consumer credit licence.
In considering fitness, the OFT will take into account a number of factors including: * any offence or conviction of violence or dishonesty carried out by the business or anyone involved in running the business * failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation * consumer complaints and how they are dealt with * evidence of unfair business practice * evidence of discrimination on grounds of sex, colour, race or ethnic origin.
Christine Wade, Director of Consumer Regulation Enforcement said:
'A company that was an associate of the applicant has been running a misleading premium rate phone scam. This reflects unfavourably on the applicant and it is therefore not considered to be safe for the applicant to be involved in supplying credit to consumers.'
NOTES
1. The Independent Committee for the Supervision of Standards of Telephone Information Services (ICSTIS) is the industry-funded regulatory body for all premium rate charged telecommunications services. ICSTIS regulates the content, promotion and overall operation of services through its Code of Practice.
2. The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit or lend money or are involved in activities relating to credit or hire to be licensed by the OFT.
3. The OFT can refuse or revoke a licence if it decides that a trader is not fit to hold one.
4. It should be noted that proceedings under the Act are not the same as those of a court and the adjudicator's findings are not the same as convictions by a court. Therefore where the adjudicator finds that an offence has been committed or a provision of the statute has been contravened, it does not mean that the person concerned has been convicted under court proceedings of that offence or of that contravention.
5. Adjudicators issue and determine licensing Notices under the Consumer Credit Act. They do so on behalf of the OFT, but make individual and independent decisions on fitness based upon the contentions in a Notice, the evidence attached to a Notice and the representations of those to whom the Notices are addressed. Representations may be made in writing and at an oral hearing.
6. An adverse determination (a refusal to grant a licence or the revocation of an existing licence) can be appealed to the Secretary of State for Trade and Industry. G-Tec Information Solutions has until 30 December 2005 to appeal this decision.
7. The Consumer Credit Public Register is maintained by the OFT. The register documents traders that hold a licence and any action taken against them. It also details traders that have applied for a licence. Enquiries can be made to the Consumer Credit Licensing Bureau on 020 7211 8608.
8. The determination to refuse application number 559675 was published on 30 November 2005. The licence applicant was G-Tec Information Solutions Ltd, 3 and 4 Woodlands Business Village, Coronation Road, Basingstoke, Hampshire, RG21 4JX.
PUBLIC enquiries: 0845 7224499 enquiries@oft.gov.uk OFT reports and consumer information leaflets are available free from: OFT, PO Box 366, Hayes UB3 1XB 0800 389 3158 oft@ecgroup.uk.com
Client ref 06/06
