It has acted to stop London-based Money Advice Direct Limited (MADL) using its existing trading name – The UK Insolvency Helpline – and the proposed domain names that include the word ‘helpline.’
It said this was because the names failed to make clear to consumers the commercial nature of the business.
The OFT has also revoked the licence of Prime Legal and Financial Services (PLFS) of Mile End, London for failing to demonstrate the necessary skills, knowledge or experience to hold a consumer credit licence.
Midlothian-based debt management firm Deric Hamilton Oliver has had its application for a licence rejected after it supplied the OFT with false information.
Since the OFT’s compliance review a year ago, 62 businesses have either been given revocation orders, surrendered their licences or had their applications refused.
David Fisher, the OFT’s director of consumer credit, said: “We expect commercial debt management businesses to meet the standards that we set out in our guidance. If they don’t, we will take action as we have demonstrated here.
“Revised debt management guidance, which is due to be published before the end of the year, will give even greater clarity as to the standards that the OFT expects of businesses that it licenses in this sector.”
