OFT refuses to renew credit broker’s licence

THE Office of Fair Trading has refused to renew the consumer credit licence of a credit broker based in North Lincolnshire.

The OFT took action against Vrajlal Laxmidas Sodha, who runs MNS Financial and MNS Consultancy, after the Financial Services Authority rejected Mr Sodha’s application for permission to carry out regulated activities.

In a statement, the OFT said that it “considered that a history of consumer complaints, intransigence in the face of warning and disciplinary action, and a lack of respect for regulatory requirements raised risks which, in the OFT’s view, made Mr Sodha unfit to hold a licence”.

Mr Sodha appealed against the decision but the Consumer Credit Appeals Tribunal confirmed the OFT’s view and as a result Mr Sodha’s application to renew his licence has been refused. The licence refusal also means that Mr Sodha’s businesses are no longer able to introduce consumers to lenders, or engage in any other licensable activity.

If Mr Sodha continues to trade he could face prosecution.

Ray Watson, OFT director of consumer credit, said: “There were large numbers of complaints against Mr Sodha and his failure to address regulators’ concerns means that refusing him licence to trade is the best way to protect consumers.”