OFT revokes CCL for PayDay loan firm MCO

One of the outcomes of the Office of Fair Trade's (OFT) review of the payday loan industry was the revocation of MCO Capital's consumer credit licence last August.  As of today, the online payday loan firm is not allowed to operate and issue loans to UK consumers.  This is after MCO withdrew its appeal to the licence revocation. The company was found by the OFT to lack the necessary skills, knowledge, and experience to run a consumer credit business.  This was due to MCO's lax practices in screening loan applicants which has enabled fraudsters to borrow millions of pounds by using the identities of 7,000 unknowing victims. It has also been found that the company had knowingly tried to collect repayments from people who did not have any outstanding loans with them and has caused distress to many people.  The debt charity Citizens Advice was instrumental in the investigation, by providing information regarding customer complaints. MCO Capital, who charges up tog 5,000% APR to its clients and uses the trademarks Speedcredit, Paycheckcredit, and Popcredit, is still appealing though the £544,505 fine slapped by the OFT for violating the Money Laundering Regulations 2007. This move serves as a reminder to other erring payday lenders and borrowing institutions to clean up their act and to stay clear from engaging in unethical business practices. Since ceasing operations, the company has passed on all of its outstanding loans to Webloans Processing Ltd, who in turn uses Northern Debt Recovery to collect the payments. To deal with reputable licensed PayDay loan lenders you can apply via our PayDay loan Application form here which connects you with up to 50 different lenders.