'Banned director' running sub-prime loans company

19 May 2009

The man in charge of the UK's largest sub-prime loans broker has been banned from being a company director after previously being found to have engaged in "serious misconduct", a BBC investigation has claimed.

According to the corporation, Keith Chorlton of Yes Loans was banned in 2000 after moving money from insolvent firms to his personal bank accounts.

However, he obtained an exemption to the order in 2008, which allows him to be a director of Yes Loans and a number of other firms.

The BBC claims to have received over 1,000 complaints about Cwmbran-based Yes Loans, including allegations that it breached consumer regulations by failing to promptly return fees to customers where necessary.

Its investigation also found that the firm's consumer credit license has expired, although the Office of Fair Trading - which is responsible for issuing the license under the Consumer Credit Act 1974 - has allowed the company to continue trading while it considers a renewal.

Both Mr Chorlton and Yes Loans, which the BBC says processes around 50,000 applications every month, maintain that they receive relatively few complaints and deny any breach of consumer regulations.

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