A credit broker based in Manchester, Mohammed Yusuf, has had requirements imposed on him by the Office of Fair Trading. Mr Yusuf also offered his services as a debt management provider.

Mr Yusuf carried on trade and under the guise of Loans 4 U and Advance Money Management. Those requirements oblige Yusuf to:

The Office of Fair trading have powers to impose requirements on credit licenses when there are concerns over specific legislation put in place to protect consumers. Those concerns will be raised in respect of compliance issues or business practices. Failing to comply with these requirements and regulations can lead to further action by the Office of Fair Trading. There are severe financial penalties up to £50,000 for each breach.

The OFT's Consumer Credit Group commented that it was especially relevant for those companies delaing with consumers facing financial hardship comply to the letter with standards expected of them. The Office of Fair Trading will take appropriate measures to ensure consumers receive an appropriate standard of care and are treated fairly. Furthermore that consumers are not adversely affected as a result of liceced businesses and brokers.

A link to the OFT report and requirements can be found here. Under the CCA (Consumer Credit Act (1974)), if the Office of Fair Trading is unhappy or dissatisfied with matters in relation to a business and/or a proposal to carry on a business. The CCA may revoke a licence.

A copy of the Debt Management Guidance can be found here. may be found by clicking here The OFT is currently undertaking a full compliance review of the guidance.

Under section 155 of the Consumer credit Act a consumer is entitled to a refund (less £5) 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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