Online news: Credit licence revocations more than double 6 December 2011

The number of consumer credit licences revoked annually by the regulator has more than doubled since 2008/09.

There were 39 consumer credit licenses revoked by the Office of Fair Trading (OFT) during 2010/11, up from 16 revoked in 2008/09, and also up from the 27 licences revoked in 2009/10.

The number of consumer credit licences surrendered has also increased in the last five years, after dropping from 932 surrendered during 2006/07 to 338 the following year (2007/08).

Since that period, the number of licences surrendered has climbed steadily, reaching 515 for the period 2010/11, up from 476 during 2009/10.

The figures were revealed by consumer minister Ed Davey during parliamentary questions, in response to a query from dr Eilidh Whiteford, MP for Banff and Buchan in Scotland.

It follows increased scrutiny by the OFT on all aspects of consumer credit since the beginning of the recession.

In the past year, the regulator has issued updated guidance on debt collection and issued a consultation on updated guidance for debt management firms following a compliance review which found widespread examples of poor practice in the industry.

Most recently, the OFT won an appeal against its decision to revoke the licence of log book loans provider Nine Regions Limited and Log Book Loans Limited.