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Adjudication

Publication Date
09 July 2015
Case Reference
63304
Procedure
Track 2
Adjudicated Party
Cash Finance Direct (Holdings) Limited
Service Type
Consumer credit
Tribunal's final assessment
Sanctions
Breaches raised
Code 12 2.3.2 Misleading
Code 12 2.3.4 Fairness
Code 12 2.6.4 Complaint handling
Code 12 2.3.1 Fairness
Summary

Between 22 December 2013 and 6 May 2015, PhonepayPlus received 119 complaints concerning a fixed line loan brokerage service (the “Service”) operated by Cash Finance Direct (Holdings) Limited (the “Level 2 provider”). Consumers engaged with the Service by calling a premium rate number to find out if they were eligible for a loan. The Service was promoted by SMS marketing, third party lead generation and online re-directs.

Further to an investigation prompted by consumer complaints about the Service, PhonepayPlus had sent a letter alleging breaches of the PhonepayPlus Code of Practice (12th Edition) (the “Code”) to the Level 2 provider on 22 May 2015. The Level 2 provider responded on 29 May 2015 via its liquidator (the “Liquidator”) acting on its behalf.

On 25 June 2015, the Tribunal considered correspondence between Phonepayplus, the Liquidator and a director of the Level 2 provider and his solicitor, for the period from 22 May 2015 to 23 June 2015, which included an application by the director, through his solicitors, for an adjournment of the hearing to enable him to make representations and/or attend.

The Tribunal considered as a preliminary issue whether to adjourn the hearing on the director’s application. The Tribunal determined that, notwithstanding the fact that the relevant party is the company in liquidation acting through its liquidator, it was in the interests of justice in the specific circumstances of the case to grant an adjournment to allow the director time to make representations and/or attend the hearing.

The Tribunal issued directions for the case to be heard at a future date.

Click here to view the Adjudication decision