Within the past few years with the economy in crisis, many consumers in the UK have applied for payday loans that unfortunately came with extremely high rates. Recently, after consumer complaints, the Office of Fair Trading investigated Yes Loans. There were reports that they used ‘deceitful and oppressive business practices’ which were misleading to loan applicants. The loan company led applicants to believe that they were a loan company when in fact they were simply a credit broker.
As one of the largest such brokers in the UK, Yes Loans were found guilty of using sales tactics which pressured consumers into disclosing card details. Their explanation was that these details were necessary for credit checks when in fact they often used those credit cards to get payments from consumers who had no idea they would be billed. Customers did not give consent for payment. At the same time, the OFT found that similar businesses were also not fit to have consumer credit licences, Money Worries Ltd and Personal Finance.
Even though Yes Loans did make changes after the investigation by the OFT, it was too late to be of consequence since their licence was revoked anyway. The consumer watchdog felt that devious practices had been going on for far too long by this point and that there were important staff members employed that propagated these unsavoury practices. The OFT stated that they will work diligently to go after businesses that take advantage of consumers, especially the most vulnerable.
After all is said and done, these companies will be able to continue operating during the appeals process and the directors have stated that this move by the OFT is extremely disappointing. It is unclear what they will do next and they have released a statement saying that they are taking advisements in regards to the appeals process. The directors further contend that no jobs are in jeopardy and that for the moment they are continuing to trade.
