We don’t see this too often, but lack of adequate security costs this business its business, and the consequences were imposed by a regulator. Out-Law.com reports:
MCO Capital Limited made loans in the name of 7,000 people whose identity was used by fraudsters without their permission or knowledge. The loans totalled millions of pounds and demonstrated MCO’s inability to put in place adequate identity checks for loan applicants. Money laundering laws require lenders to conduct identity checks.
The OFT revoked MCO’s consumer credit licence in August and imposed a penalty of £544,505 on the company. MCO appealed and continued to trade while the appeal was pending but has now withdrawn its appeal. It will continue to appeal against the penalty.
The company, which operated using brands including Speedcredit and Paycheckcredit, also engaged in unfair business practices by demanding money from the real identity holders who had not taken out loans.
Read more on Out-Law.com