A major sub-prime firm accused of “deceitful and oppressive business practices” can no longer broker loans for customers after having its licence terminated, the trading watchdog said yesterday.
Yes Loans confirmed it will not appeal against a decision by the Office of Fair Trading (OFT) to revoke its licence after the watchdog found that it had misled customers.
The firm introduced consumers looking for a loan to businesses providing one, but the OFT found that it arranged expensive payday loans for some consumers rather than the products they were initially asking about and misled others into believing it was a loan provider rather than a credit broker.
Yes Loans and an associate business, Blue Sky Personal Finance, have decided not to appeal against the decision to revoke their licences, meaning they can no longer broker credit for consumers.
An appeal has been lodged by another associate firm, debt management company Money Worries, against the OFT’s decision to revoke its consumer credit licence, which it can retain until the outcome of the appeal.
The firms say Yes Loans and Blue Sky will still be able to trade, but will not be able to perform the activities covered by their consumer credit licences, in particular loan brokerage.