James Davenport of Davenport Motors in Manchester, licensed by the OFT to offer credit brokerage services, recently applied to vary his licence to add debt collection.
While the OFT was satisfied that Mr Davenport was fit to engage in some credit activities, it was not satisfied that he had demonstrated the specialist skills, knowledge or experience to collect debts.
The OFT considers that debt collection is a high-risk activity and those wishing to engage in this type of business must show that they have implemented, or are putting in place, practices and procedures necessary to meet minimum standards required by the OFT. Mr Davenport failed to demonstrate that he had the expertise needed and so his application was refused. This decision does not affect Mr Davenport's ability to offer credit brokerage services.
Ray Watson, OFT Director of Consumer Credit, said:
'Mr Davenport is considered to be fit and proper person to hold a licence allowing him to offer credit brokerage services. However, debt collection is an area where there is a potentially high risk of harm to consumers. Anyone who wants to collect debts legally is subject to a high level of scrutiny by the OFT and those that do not meet our minimum standards of competence are not allowed to engage in this practice.'.
