HC Deb 28 April 1999 vol 330 cc201-3W
Mr. Love

To ask the Secretary of State for Trade and Industry what proportion of holders of current consumer credit licences are also authorised under the Financial Services Act 1986.[81596]

Dr. Howells

[holding answer 20 April 1999]: This information is not available in the form requested and to collate such information would involve disproportionate cost.

Mr. Love

To ask the Secretary of State for Trade and Industry how many consumer credit licences have been revoked by the Office of Fair Trading, and for what reasons, in(a) 1997, (b) 1998 and (c) 1999 to date. [81595]

Dr. Howells

[holding answer 20 April 1999]: The Director General of Fair Trading revoked 35 licences in 1997 and 17 licences in 1998. 10 licences were revoked during the period 1 January to 19 April 1999.

Generally, a licence is revoked as a result of complaints and/or criminal convictions against the licensee which show that the licensee is no longer a fit person to engage in the activities covered by the licence. The exact reasons for the revocation of a particular licence are placed on the public register which the Director General has a duty to maintain under section 35 of the Consumer Credit Act.

This information is available to the general public from:

  • The Office of Fair Trading
  • Consumer Credit Licensing Bureau
  • Craven House
  • 40 Uxbridge Road
  • Ealing
  • London W5 2BS
  • Telephone: 0171 269 8608/8616.

Mr. Love

To ask the Secretary of State for Trade and Industry how many staff were employed by the Office of Fair Trading to carry out its consumer credit, licensing and related regulatory functions during(a) 1997–98, (b) 1998–99 and (c) 1999–2000. [81592]

Dr. Howells

[holding answer 20 April 1999]: The number of staff units employed by the Office of Fair Trading to carry out these functions were as follows:

Period Number of staff units
1997–98 85.6
1998–99 83.2
1999–2000 89.2

Mr. Love

To ask the Secretary of State for Trade and Industry what requirements have to be met to obtain a consumer credit licence from the Office of Fair Trading. [81594]

Dr. Howells

[holding answer 20 April 1999]: The Director General of Fair Trading has to be satisfied that an applicant is fit to engage in all the business activities covered by a licence and that the applicant's name is not misleading or undesirable. In considering whether or not an applicant is a fit person he will have regard to evidence tending to show that an applicant has:

  1. (a) committed any offence involving fraud or other dishonesty, or violence;
  2. (b) contravened any provision made by or under the Consumer Credit Act 1974, or by or under any other enactment regulating the provision of credit or other transactions with individuals;
  3. (c) practised discrimination on grounds of sex, colour, race or ethnic or national origins in, or in connection with, the carrying on of any business; or
  4. (d) engaged in business practices appearing to the Director General to be deceitful or oppressive, or otherwise unfair or improper (whether unlawful or not).

These criteria are set out in full in section 25 of the Consumer Credit Act.

Mr. Love

To ask the Secretary of State for Trade and Industry how many current consumer credit licensees are operating(a) in the consumer credit market, (b) in the secured credit market for loans of up to £25,000 and (c) in the secured credit market for loans above £25,000. [81593]

Dr. Howells

[holding answer 20 April 1999]: The Director General of Fair Trading collects information to help him assess the fitness of licence holders but does not collate information about their business activity. To collate such information would require disproportionate cost.

Mr. Love

To ask the Secretary of State for Trade and Industry how many consumer credit licences issued by the Office of Fair Trading under the Consumer Credit Act 1974 are still current.[81598]

Dr. Howells

[holding answer 20 April 1999]: There were 261,075 current licences on 1 April 1999.

Mr. Love

To ask the Secretary of State for Trade and Industry what monitoring the Office of Fair Trading and trading standards officers undertake of individuals granted consumer credit licences under the Consumer Credit Act 1974. [81597]

Dr. Howells

[holding answer 20 April 1999]: The Office of Fair Trading generally relies upon local authority trading standards services to monitor licensees. Consumers who have problems with licence holders can complain to their local trading standards services, and details of these complaints are passed to the Office of Fair Trading. Trading standards services also have powers under the Consumer Credit Act 1974 that allow them to enter premises, inspect documents, and to make test purchases. They also prosecute offences under the Act.

The Office of Fair Trading maintains a register of convictions that result from action by trading standards services. The register is used in both assessing the fitness of applicants for licences and monitoring the continuing fitness of licensees.