On August 9, the OFT published a press release stating that it had imposed a £544,505 fine on MCO Capital Ltd (MCO), an online payday lender, for breaching the Money Laundering Regulations 2007 (MLRs) and had also revoked MCO’s consumer credit licence. Press Release.
MCO had failed to adequately verify the identities of loan applicants, which led to it being targeted by fraudsters who used the details of over 7,000 individuals to apply for loans. MCO was also found to be engaged in unfair business practices by writing to people who they were aware may not have taken out loans, asking unequivocally for repayment. MCO’s licence was revoked as the OFT found it lacked the necessary skills, knowledge and experience to run a consumer credit business.
MCO has a right to appeal the OFT’s decision.