The Office of Fair Trading will soon have the power to instantly shut down dodgy financial companies who are ripping off customers.
Dodgy payday lenders and other unscrupulous credit firms could be shut down instantly thanks to new powers the Government is giving the Office of Fair Trading (OFT).
At the moment although the OFT can revoke a Consumer Credit License, the company concerned can appeal the decision. Having the case heard can take up to two years, during which the company can continue trading.
The new power of instant shutdown will be used where there is an urgent need to protect the interest of consumers.
Commenting on the recent Government announcement that the Office of Fair Trading (OFT) will be given new powers to suspend consumer credit licences with immediate effect, CSA President Sara de Tute said:
“We welcome this news and look forward to being involved in the consultation process to ensure robust procedures are in place to make alternative arrangements for the consumer in the event of a company no longer being permitted to trade.”