First Step manager acquires business following OFT action
THE former financial controller at a Stockport debt management firm that was struck off by the Office of Fair Trading this week has acquired the business.
First Step Finance, which employed 100 people, had its consumer credit licence revoked by the OFT which had identified “serious concerns about the transparency and integrity of its practices”.
Darren Newton has acquired the client base and the lease on its premises in Grand Central Square from sole shareholder Christine Whitehurst.
He has carried out the transaction through a vehicle called Debt Help & Advice which a spokesman said had also been acquired from Ms Whitehurst as it already has a consumer credit licence. The financial details of the deal were not disclosed.
He is running the business with Adrian Crymble, formerly a member of the operations team at First Step. They have also hired David Ellwood from Kendal-based compliance firm HiCas Consultancy and previously of Cumbria Trading Standards.
The OFT decided to revoke First Step’s licence in November 2012 after finding that among other things, its advertising, marketing and other information failed to adequately highlight the risks or costs associated with its services.
First Step made, but then withdrew, an appeal against this decision, following which the OFT authorised it to trade for a short period, subject to strict conditions, so it could wind down or transfer its business.
In a statement Mr Newton said: “With a more transparent approach than before and with David’s knowledge of compliance and the regulatory framework, along with Adrian’s experience of the debt resolution and insolvency industry and my financial expertise, we are confident that we can significantly grow Debt Help & Advice.”
Debt help said it had instructed barrister Alan Conroy in order to remain compliant with legal and regulatory requirements. It also said it will work closely with trading standards “to ensure consumer protection is central to everything they do”.
This week the OFT also revoked a licence held by Chorley-based Welcome Solutions which is controlled by Geoffrey Brayshaw. The OFT said that Welcome, which traded as debtsorters.co.uk, had engaged in “unfair or improper business practices”, including “falsely claiming or implying that its debt advice was provided on a free and impartial basis, and also publishing misleading or false customer testimonials”.
The OFT also decided not to renew a licence of Manchester-based Debt Connect (UK) following an appeal. It said the firm was found to have, “engaged in a number of unfair business practices, including providing misleading and inaccurate information to consumers and failing to implement proper practices and procedures”. It is owned by Pardeep Sharma and its sole director was Rahul Sharma.
Since the OFT’s 2010 review of the debt management sector, over 100 businesses have either left the market or been refused licences.
