OFT refuses doorstep lender credit licence

The Office of Fair trading (OFT) has refused an application from U-Turn Financial Solutions Ltd for a consumer credit licence.

The company, whose directors are Andreas Haralambous and John Burchill, proposed to offer doorstep loans to consumers across Kent, Surrey and South London, using Bills of Sale to secure the loans on customers' cars. Haralambous, also known as Harry Lamb and Andrew or Andy Haralambous, ran previous businesses offering home collected credit to customers.

Following an investigation assisted by Kent Trading Standards Service, the OFT refused the application because it found that Haralambous had:

• operated an unlicensed company Chelsea Loans Ltd, which offered cash loans to consumers
• engaged in unfair business practices, including irresponsible lending, using threatening behaviour and allowing employees to pressurise debtors to repay
• failed to comply with important legal requirements about the form and content of credit agreements and advertisements, and
• failed to comply with OFT debt collection guidance by charging debtors excessive and unjustifiable sums for non-payment.

Ray Watson, OFT Director of Consumer Credit, said:

'Mr Haralambous has shown a serious disregard for the welfare of consumers. He consistently breached minimum standards, and intentionally used unfair business practices to put pressure on his customers.

'Customers of credit offered or collected in the home are often vulnerable. Traders who seek to take unfair advantage of such people will not receive a credit licence and will not be allowed to trade.'

Source oft.gov.uk

DebtWizard comment

It is heartening to see that the OFT is doing something positive about protecting vulnerable and desperate consumers who feel the need to approach these organisations.

Although Doorstep lenders are regulated, matters can turn nasty if the consumer falls behind with their payments to the higher than the norm interest rates. However for some consumers this form lending actually works because they cannot get access to credit from the usual sources such as the High Street banks.

Anyone thinking of using a 'Doorstep lender' should not take the first offer that comes along. Instead they should visit the independent website lenderscompared.org.uk, and shop around for the best deal before they do any more and make sure they know exactly what they will be paying out. 

Another form of borrowing to consider would be from a 'Credit Union'. You can find more on how they work and search for one nearest to you here Credit Union Search

More on 'Doorstep lending' can be found at our DebtWizard guide to Doorstep Lenders.