Yes Loans to appeal against loss of Money Worries licence

| April 5, 2012
Yes Loans to appeal against loss of Money Worries licence

Credit broker Yes Loans has decided to appeal against the withdrawal of a consumer credit licence from its affiliate company Money Worries Ltd.

The Office of Fair Trading (OFT) stripped Yes Loans, and its affiliate companies, Money Worries Ltd and Blue Sky Personal Finance Ltd, of their licences in March, after customer complaints prompted an investigation into the companies.

Yes Loans was found to have used deceitful and oppressive business practices, including misleading customers into thinking it was a loan provider rather than a credit broker.

It also arranged payday loans for customers, instead of the product the customer had enquired about and deducted brokerage fees without the customer’s consent.

The OFT also found that Yes Loans misled customers into providing credit and debit card details by leading them to believe they were required for identity and security checks.

Yes Loans was given 28 days to appeal against the decision to withdraw the credit licences and has now decided to appeal only in respect Money Worries’ licence.

In a statement the company said: “For the avoidance of doubt, our decision not to lodge appeals in respect of Yes Loans and Blue Sky is a strategic one, and in no way should this be considered as acceptance of the reasons given by the OFT to revoke the licences.

“We are saddened and disappointed at the stance taken by the OFT in their determination and lack of recognition of the major re-engineering that was undertaken towards the end of 2011 which addressed the major concerns they had highlighted.”

The OFT confirmed that the licences of both Yes Loans Ltd and Blue Sky Personal Finance Ltd are now terminated, but the licence held by Money Worries Ltd will remain in effect until the appeal process is concluded.

In related news, the Advertising Standards Authority (ASA) has banned an advertisement from payday loan company, mobyloan.com, for being misleading.

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