Oxendale & Co. Limited

Background to breach The issue was discovered through information provided to the Central Bank’s Consumer Protection Directorate. During the month of June 2012 the Firm sent an e-mail to six hundred and fifty customers offering to increase their credit limits. Thirty nine customers took up the offer. Once this issue was brought to the attention of the Firm, it immediately ceased sending any communications of this nature to its customers. 2 Penalty decision factors The fact that penalties have been imposed in this case reflect the importance the Central Bank places on compliance with the Moneylenders’ Code. The Moneylenders’ Code was put in place for the protection of consumers and a breach of Common Rule 31, Chapter 2 of the Code is considered to be material by virtue of the fact that it could encourage consumers to increase their credit limit in circumstances where it may not be in the consumer’s best interest to do so and where the increase had not been solicited by the consumer in the first instance. In deciding the appropriate penalty to impose, the Central Bank has taken the following into account:  the email was issued to a limited number of customers of the Firm and not to the entire population of customers and only thirty nine of those customers chose to accept the offer of pre-approved credit facilities which had not been solicited by them.