A
Camden businessman who charged £50 for loans that never appeared
has been forced to give refunds to seven people. Camden Council
threatened to serve Jaydrath Parmar and his business Credit and
Financial Solutions with a 'Stop Now Order' under legislation which
has just come into force.
Council Trading Standards officers used the new
'Stop Now Orders' legislation to put an end to £50 loan-arranging
scheme, which meant that vulnerable people who found it difficult
to get a loan were left out of pocket. Faced with the threat of
one of the new orders, Parmar agreed to refund the loan fees to
seven customers.
"This is a good result for everyone and shows how
effective this new legislation is," said Head of Trading Standards
Des Campbell. "Now that Camden has shown the way, I expect other
local authorities to make use of these new powers to ensure people
don't get ripped off."
"Our advice to anyone with money problems is to
get some expert help from Trading Standards or the Citizen's Advice
Bureaux," said Des, "if you are in debt, you need advice before
you even think about a loan."
In fact, Parmar had committed no crime - the only
redress for victims is to sue in the civil courts. Under the new
laws, businessmen are first offered the chance to sign an undertaking
to do the right thing. If they refuse, trading standards officers
can go to court to issue a 'Stop Now Order'. Failure to honour the
order is contempt of court, an offence that can lead to a jail sentence.
If you want to make a complaint to Camden Council
about a private business click here
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