Yes Loans pulled up by OFT

by Gill Montia

Story link: Yes Loans pulled up by OFT

Yes Loans, which arranges consumer credit of between £500 and £3,000 for people with poor credit histories, has come to the attention of the Office of Fair Trading (OFT).

The watchdog has imposed requirements on the firm’s licence following an investigation into its business practices.

In future, Yes Loans will need to make it clear from its website and marketing material that it offers a credit brokerage service and is not itself a lender.

The OFT also wants the company’s terms and conditions amended so that customers who cancel receive a refund of any brokerage fees within 30 days.

Also, telephone staff must maintain a script that informs customers of their right to cancel their contract for Yes Loans’ services within 14 days and receive a refund of fees.

OFT director of credit, Ray Watson, says: “Many businesses charge an up-front fee for brokering loans for consumers, and customers should be aware that if they use a broker but do not accept the credit offered, no matter what the reason, they are entitled to a refund less £5.”

The firm has one month to introduce most of the changes and a breach of any of the OFT’s requirements could lead to a fine.