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OFT suspends credit licence of online payday lender
The OFT has suspended the consumer credit licence of Micro Lend UK Limited, an online payday lender based in Colindale, North West London. This is the first time the OFT has suspended a payday lender’s credit licence and is part of its ongoing action in the sector.
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The OFT has suspended the consumer credit licence of Micro Lend UK Limited (Micro Lend), an online payday lender based in Colindale, North West London. This is the first time the OFT has suspended a payday lender's credit licence and is part of its ongoing action in the sector.
The OFT took this step after concluding that suspending the licence is urgently necessary to protect consumers. The suspension means it is now a criminal offence for Micro Lend, or any other person, for example an employee of Micro Lend, to engage in any consumer credit or credit broking activity using the company's credit licence. This press notice has been issued to inform consumers and other consumer credit businesses. The principal place of business for Micro Lend is Unit 3, Colindale Business Park, 126 Colindale Avenue, London, NW9 5HD.
Micro Lend has been invited to make representations to the OFT by 24 March 2014. If representations are made, the OFT's Adjudicator will take into account the representations and decide whether to confirm the suspension (with or without variation) or withdraw it.
NOTES
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The OFT has suspended the consumer credit licence of Micro Lend UK Limited (Micro Lend), an online payday lender based in Colindale, North West London. This is the first time the OFT has suspended a payday lender's credit licence and is part of its ongoing action in the sector.
The OFT took this step after concluding that suspending the licence is urgently necessary to protect consumers. The suspension means it is now a criminal offence for Micro Lend, or any other person, for example an employee of Micro Lend, to engage in any consumer credit or credit broking activity using the company's credit licence. This press notice has been issued to inform consumers and other consumer credit businesses. The principal place of business for Micro Lend is Unit 3, Colindale Business Park, 126 Colindale Avenue, London, NW9 5HD.
Micro Lend has been invited to make representations to the OFT by 24 March 2014. If representations are made, the OFT's Adjudicator will take into account the representations and decide whether to confirm the suspension (with or without variation) or withdraw it.
NOTES
- The OFT is unable at this stage to discuss the detailed reasons for its decision to suspend Micro Lend's licence.
- Micro Lend's consumer credit licence is suspended as of 3 March 2014.
- An amendment to the Consumer Credit Act 1974 came into effect on 19 February 2013 and gave the OFT the power to suspend a consumer credit licence where it appears urgently necessary to do so for the protection of consumers.
- The OFT published guidance in February 2013 setting out how and when it can use the new power to suspend a credit licence. The guidance establishes that in the most serious cases, which include those where there is evidence of immediate harm, the OFT will suspend a licence with immediate effect. In other circumstances, businesses will be given an opportunity to make its case to an adjudicator before the suspension takes effect.
- The Financial Conduct Authority (FCA) will take over regulation of consumer credit from the OFT on 1 April 2014. The transfer of regulation is part of the Government's programme of regulatory changes for financial services and brings conduct of business regulation under a single financial services regulator. See the FCA's website for more information.
- In the event that any representations to the Adjudicator or subsequent appeal in respect of this decision is incomplete at time of transfer, provision has been made to transfer the appeals process across to the FCA.
