OFT imposes requirements on Manchester credit broker

76/10 5 July 2010

The OFT has imposed requirements on Mr Nasser Mohammed Yusuf, a Manchester-based credit
broker and debt management provider.

The requirements oblige Mr Yusuf, who uses trading names such as Advance Money Management
and Loans 4 U, to:

 refund brokerage fees to consumers where no loan has been provided

 comply with the OFT's Debt Management guidance
 implement adequate complaints handling procedures

The OFT can impose requirements on a credit licensee when it has concerns over a licensee's
business practices or compliance with specific consumer protection legislation. Failure to comply
with requirements can lead to further action by the OFT and the imposition of financial penalties of
up to Ä50,000 per breach.

Nigel Cates, Deputy Director of the OFT's Consumer Credit Group, said:

'It is important that all companies, especially those dealing with consumers facing financial
difficulty, comply fully with the standards expected of them. The OFT will use its powers to ensure
that consumers receive a proper standard of customer care and do not suffer detriment as a result of
the behaviour of licensed businesses.'

NOTES

1. Download the requirements here

2. Under the Consumer Credit Act (1974), if the OFT is dissatisfied with any matter in
connection with a business, a proposal to carry on a business or any other conduct by a
licensee, associate or former associate, it may impose 'requirements' on the licensee.
Requirements may require a licensee to do or not to do (or to cease doing) anything specified
for the purposes connected with addressing the OFT's dissatisfaction, or securing that matters
of the same or a similar kind do not arise.
3. A copy of the Debt Management Guidance may be found at
www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/oft366.pdf
The OFT is currently undertaking a compliance review of the guidance.
4. Under section 155 of the Act a consumer is entitled to a refund (less Ä5) of the fee paid to a
credit broker if for any reason the consumer does not enter into a relevant agreement within six
months of an introduction to a source of credit or hire.

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