CWMBRAN-BASED Yes Loans said yesterday it is considering an appeal after its licence was revoked for “deceitful and oppressive” business practices.

The company, based in Llantarnam Park, said it is taking advice over lodging an appeal over the Office of Fair Trading’s (OFT) decision yesterday to revoke its consumer credit licence, along with two associated businesses, Blue Sky Personal Finance Limited and Money Worries Limited.

Yes Loans, one of the UK’s largest brokers of unsecured credit, employs 360 people at its Cwmbran site.

The OFT said it had found evidence Yes Loans had engaged in unfair business practices, including using high-pressure sales tactics to persuade consumers to provide their debit or credit card details on the false premise they were needed for identity or security checks and deducting brokerage fees without making it clear a fee was payable, and/or without the consumer’s consent.

Yes Loans also frequently arranged short-term, high-interest, loans instead of helping customers find what they had originally called for, misleading them into believing it was a loan provider rather than a credit broker, and treated customers poorly by not providing refunds in a timely manner, the OFT statement said.

The OFT ruled Yes Loans failed to comply with the Consumer Credit Act 1974 and with requirements previously imposed on it.

Following an investigation, Yes Loans made a number of changes to how it operates, including no longer charging upfront fees.

In a statement released yesterday, the OFT said despite the changes, evidence of prolonged engagement in “deceitful and oppressive” business practices, and the continuing presence of some of the staff responsible for running the businesses, makes them unfit to hold a consumer credit licence.

David Fisher, director of consumer credit at the OFT, said: “This action also makes it clear that belatedly changing business practices when facing the prospect of enforcement action by the OFT does not make a company fit to hold a credit licence.”

‘Directors upset but no jobs are at risk’

A STATEMENT was issued by Yes Loans directors, which said: “We are very disappointed and saddened by the Office of Fair Trading’s decision. We have all worked tirelessly to implement significant and fundamental advances to the business. We are disappointed that, despite recognising this, the OFT has decided to revoke the licences of three long-standing businesses, which provide a loans brokerage service and other personal financial services to many thousands of satisfied customers.

“We are currently taking advice with regard to lodging an appeal against the decision. No jobs are at risk within the companies concerned, regardless of the outcome of any appeal.

“Currently, and throughout any appeals process, our licences remain valid and allow us to continue trade.”