Pay day loans company Yes Loans has licence revoked

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Pay day loans company Yes Loans has licence revoked

A sub-prime credit broker accused of “deceitful and oppressive company techniques” has had its licence revoked by the trading watchdog.

Yes Loans arranged expensive pay day loans for a few customers as opposed to the items these people were initially asking about and misled other people into thinking it had been that loan company instead of a credit broker, any office of Fair Trading (OFT) found.

The company emphasised so it hadn’t power down and said its licence permitted it to continue investing through any appeals procedure.

Customer groups welcomed the OFT’s decision, with Sarah Brooks, manager of economic solutions at Customer Focus, saying it showed up “long overdue”.

She stated: “we should not tolerate organizations whom use deceptive product sales techniques to leech more income from cash-strapped consumers.”

The OFT was investigating Yes Loans during a period of many years therefore the company formerly changed several of its techniques because of this, including no longer charging you charges upfront.

Nevertheless the watchdog stated that “the data of prolonged engagement in deceitful and oppressive business techniques, and also the continuing existence of a number of the staff in charge of operating the firms, means they are unfit to keep a credit licence”.

The Financial Ombudsman provider upheld a lot more than eight away from 10 complaints built to it against Yes Loans within the last few 6 months of 2011 also it stated that complaints about credit broking generally speaking had been increasing.

Yes Loans, one of the primary agents of its type into the UK, utilized “high stress” product sales strategies to persuade customers to offer their card information on the false premise they were necessary for safety checks, the OFT stated. (more…)