Consumer Credit Licences

People and organisations that provide services which are regulated by the Consumer Credit Act 1974 require a licence, issued by the Office of Fair Trading, before they can operate. Operating without a licence is a criminal offence and can affect the legitimacy of any regulated agreements formed with customers.

There are different categories of licence and trading without the right category of licence, or without the relevant trading name recorded on the licence, is a criminal offence. It is also important to recognise that a consumer credit licence is issued to a legal entity and is not transferrable so sole traders who subsequently become incorporated must apply for a new licence in the name of the limited entity.

Historically licences were issued by the Office of Fair Trading with all categories included and for a specific duration of time however as part of a risked based approach to licencing applicants must now apply for the categories they require although licences are typically issued for an indefinite period. Maintenance payments to the OFT for licences are normally payable every five years.

Where the Office of Fair Trading find that a licensee is not operating their activities compliantly it can take action to have the licence suspended or revoked, or alternatively it can seek to have conditions applied to the licence to ensure that the required standards are observed.

You can more information about credit licensing by using the links below. If you need help in applying for a consumer credit licence, assistance in meeting your compliance obligations or you are facing enforcement action that could jeopardise your licence please visit www.scottrobertllp.com for professional support.

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