Yes Loans will not appeal OFT rulingBroker has consumer credit licence removed
11 April 2012
Yes Loans has announced that it will not appeal against the Office of Fair Trading's ruling that it cannot continue to broker credit agreements.
Sub-prime broker Yes Loans was accused by the OFT of 'deceitful and oppressive business practices'. The regulator found that Yes Loans arranged expensive payday loans for customers who had applied for other credit options. It also ruled that the provider mislead customers into believing that they were dealing with the loan provider rather than a broker.
Yes Loans and sister company Blue Sky Personal Finance have stated that they will not be appealing the decision. However, a further associated firm, Money Worries, has announced that it will be challenging the decision to terminate its licence.
Zero tolerance on payday loans
Commenting on the decision, OFT director of consumer credit David Fisher, said: 'Yes Loans is one of the UK's largest credit brokers and this successful action sends out a strong message that we will not tolerate inappropriate behaviour by any businesses in this sector, large or small.
'Tough economic conditions mean that more vulnerable people are likely to use services provided by this sector so it's important that we continue working with industry to drive up standards.'
What next for loan customers?
Yes Loans customers are entitled to complain to the broker and seek redress for any losses incurred. If the company is unwilling to accommodate them, customers can take the matter to the Financial Ombudsman Service.