The Bristol-based firm sold and serviced vacuum cleaners in the South-West of England. Staff of P. F. International went door-to-door using cold call visits and high-pressure sales techniques with vulnerable consumers, in clear violation of a requirement on its permissions and the FCA’s principle of treating customers fairly.
The firm also failed to carry out adequate affordability checks on customers’ ability to repay the credit and entered into credit agreements with customers even though customers had told them that they could not afford to pay.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said:
‘We intervened early with this firm in order to prevent further harm to vulnerable customers. The firm simply failed to follow our rules and as a result vulnerable customers suffered.
‘Firms should look at the action we have taken and ensure that they are treating their customers fairly, particularly if they are vulnerable.’
The Upper Tribunal struck out the firms’ final appeal. As a result of the decision P.F. International will no longer be allowed to conduct any regulated activity, including recovering any regulated debts owed to it.
The FCA worked closely with both Bristol Trading Standards and the National Trading Standards South-West Regional Investigation Team. Collaboration with these bodies played an important role in gathering the evidence needed to prevent consumer harm quickly and effectively.
Notes to editors
- The FCA issued a First Supervisory Notice on 31 July 2018.
- The FCA then issued a Second Supervisory Notice on 20 November 2018.
- The Upper Tribunal decision was published on 8 January 2020.
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this, it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
- Find out more information about the Upper Tribunal (Tax and Chancery Chambers)