OFT refuses debt collection licence

THE Office of Fair Trading has refused to extend a Manchester credit broker’s licence to allow him to collect debts.

James Davenport of Davenport Motors in Manchester, licensed by the OFT to offer credit brokerage services, applied to vary his licence to permit debt collection.

The watchdog said Mr Davenport was fit to engage in some credit activities, but it was not satisfied that he had demonstrated the specialist skills, knowledge or experience required to collect debts.

The decision has not affected Mr Davenport’s ability to offer credit brokerage services.

Ray Watson, OFT director of consumer credit, said: “Mr Davenport is considered to be fit and proper person to hold a licence allowing him to offer credit brokerage services. However, debt collection is an area where there is a potentially high risk of harm to consumers.

“Anyone who wants to collect debts legally is subject to a high level of scrutiny by the OFT and those that do not meet our minimum standards of competence are not allowed to engage in this practice.”