Between 12 October 2015 and 14 November 2016, the Executive received 9 complaints concerning a fixed line loan brokerage service "Bright Sky Loans" (“the Service”).
The Level 2 provider for the Service was David Drysdale T/A Bright Sky Loans (“the Level 2 provider”). The Level 1 provider was Digital Select Ltd.
Complainants variously alleged that they did not receive a loan or any contact from loan companies via the service.
The Executive raised the following potential breaches of the PSA Code of Practice (the Code)
1. Para 4.2.5 - Failure to disclose information
2. Rule 2.3.1 - Fair and equitable treatment
3. Rule 2.3.2 - Misleading
4. Rule 2.6.4 - Refunds
5. Para 3.4.12(a) - Registration of numbers
The Tribunal upheld the breaches of the Code raised, with the exception of the breach of paragraph 4.2.5 which was not upheld. The Level 2 provider’s revenue in relation to the Service was in Band 3 (£250,000 to £499,999). The Tribunal considered the case to be very serious and imposed a formal reprimand, and a fine of £120,000. The Tribunal also imposed a requirement that the Level 2 provider must refund all consumers, regardless of whether or not they have claimed a refund, and provide evidence to PSA that such refunds have been made. The Tribunal prohibited David Drysdale from providing, or having any involvement in, any premium rate service for a period of five years from the date of publication of this decision.
Administrative charge recommendation: 100%