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5. Martyn Mattison now operates as a director of Finance Reclaim Ltd which holds consumer credit licence number 613178 and is regulated by the Ministry of Justice regarding its claims management business.
OFT secures undertakings against three ex-directors involved in right to buy scheme
148/08 19 December 2008
Three former directors involved with a scheme encouraging consumers to exercise their right to buy council properties have given undertakings that they will not mislead consumers.
The OFT has secured undertakings from Stephen Harvey, previously director of FAI Finance Corporate Ltd (FAI), and Martyn Mattison and Ronald Robertson, previously directors of Fasttrack Services Ltd (Fasttrack).
Fasttrack undertook doorstep visits to council tenants, encouraging them to make an application under the right to buy scheme and offering their services to assist with the process. As part of the deal, consumers were required to sign up to a credit agreement with finance provider FAI.
Complaints received by the OFT and its enforcement partners suggested that FAI and its agent Fasttrack misled consumers about the effects of signing up and specifically led consumers to believe that:
Complaints also indicated other unfair practices, including:
The OFT considered that FAI and its agents had been misleading consumers and approached the former directors about the various breaches of consumer protection law. They gave undertakings that they would not mislead consumers in the ways identified above. Additionally, Stephen Harvey, ex director of FAI, gave undertakings promising to comply with legislation regarding the cancellation of contracts.
Ray Watson, OFT Director of Credit Group said:
'The OFT, working with Trading Standards Services and many advice agencies across the country, has secured undertakings which satisfy us in this particular case that consumers will no longer be misled. We will continue to take strong enforcement action against any other firms who seek to exploit vulnerable consumers.'
NOTES
1. Fast track Services Ltd, 72 Gartside Street, Manchester, M3 3EL, company number 05109352, went into liquidation on 22 August 2007. FAI Finance Corporation Ltd, Unit B, Swords Business Campus, Balheary, Swords, Co. Dublin went into liquidation on 24 April 2008 (incorporated in Ireland).
2. Undertakings under Part 8 of the Enterprise Act 2002 (EA) were signed by Martyn Mattison on 24 September 2008, Stephen Harvey on 11 October 2008 and Ronald Robertson on 20 October 2008. The undertakings relate to contended breaches of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).
3. The CPRs, which implement an EU Directive in the UK, came in to force on 26 May 2008. The CPRs prohibit unfair commercial practices which distort consumers' decisions. They introduce a general duty not to trade unfairly on businesses dealing with consumers. They prohibit misleading consumers by action or omission. They also contain prohibitions against aggressive practices, as well as 31 specific practices that are always considered unfair. For more information see the BERR website.
4. The CPRs are enforceable by the OFT and other designated enforcers through both the criminal and civil courts. Breaches of the CPRs also constitute 'Community infringements' under the EA. Under the EA, the OFT can apply to the courts for an injunction ordering businesses to comply with the law in future. It may also accept undertakings from those involved in lieu of action.
5. Martyn Mattison now operates as a director of Finance Reclaim Ltd which holds consumer credit licence number 613178 and is regulated by the Ministry of Justice regarding its claims management business.
148/08 19 December 2008
Three former directors involved with a scheme encouraging consumers to exercise their right to buy council properties have given undertakings that they will not mislead consumers.
The OFT has secured undertakings from Stephen Harvey, previously director of FAI Finance Corporate Ltd (FAI), and Martyn Mattison and Ronald Robertson, previously directors of Fasttrack Services Ltd (Fasttrack).
Fasttrack undertook doorstep visits to council tenants, encouraging them to make an application under the right to buy scheme and offering their services to assist with the process. As part of the deal, consumers were required to sign up to a credit agreement with finance provider FAI.
Complaints received by the OFT and its enforcement partners suggested that FAI and its agent Fasttrack misled consumers about the effects of signing up and specifically led consumers to believe that:
- the government was ending the Right to Buy scheme or reducing the available discount, when this was not true
- no fee would become payable if the house sale did not go ahead using the slogan 'no completion, no fee', when the agreement suggested otherwise, and
- they would get £500 in vouchers just for signing up, when this was only available on completion of the purchase of the property.
Complaints also indicated other unfair practices, including:
- not leaving a copy of the credit agreement with the consumer
- not giving a notice of cancellation rights as required under the Consumer Credit Act and Doorstep Selling Regulations, and
- ignoring legitimate cancellation requests.
The OFT considered that FAI and its agents had been misleading consumers and approached the former directors about the various breaches of consumer protection law. They gave undertakings that they would not mislead consumers in the ways identified above. Additionally, Stephen Harvey, ex director of FAI, gave undertakings promising to comply with legislation regarding the cancellation of contracts.
Ray Watson, OFT Director of Credit Group said:
'The OFT, working with Trading Standards Services and many advice agencies across the country, has secured undertakings which satisfy us in this particular case that consumers will no longer be misled. We will continue to take strong enforcement action against any other firms who seek to exploit vulnerable consumers.'
NOTES
1. Fast track Services Ltd, 72 Gartside Street, Manchester, M3 3EL, company number 05109352, went into liquidation on 22 August 2007. FAI Finance Corporation Ltd, Unit B, Swords Business Campus, Balheary, Swords, Co. Dublin went into liquidation on 24 April 2008 (incorporated in Ireland).
2. Undertakings under Part 8 of the Enterprise Act 2002 (EA) were signed by Martyn Mattison on 24 September 2008, Stephen Harvey on 11 October 2008 and Ronald Robertson on 20 October 2008. The undertakings relate to contended breaches of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs).
3. The CPRs, which implement an EU Directive in the UK, came in to force on 26 May 2008. The CPRs prohibit unfair commercial practices which distort consumers' decisions. They introduce a general duty not to trade unfairly on businesses dealing with consumers. They prohibit misleading consumers by action or omission. They also contain prohibitions against aggressive practices, as well as 31 specific practices that are always considered unfair. For more information see the BERR website.
4. The CPRs are enforceable by the OFT and other designated enforcers through both the criminal and civil courts. Breaches of the CPRs also constitute 'Community infringements' under the EA. Under the EA, the OFT can apply to the courts for an injunction ordering businesses to comply with the law in future. It may also accept undertakings from those involved in lieu of action.
5. Martyn Mattison now operates as a director of Finance Reclaim Ltd which holds consumer credit licence number 613178 and is regulated by the Ministry of Justice regarding its claims management business.
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