Licence - credit
Service Outline
If a business offers credit or lends money to consumers, or allows customers time to pay for goods and services, it must be licensed with the Consumer Credit Licensing Bureau of the Office of Fair Trading under the Consumer Credit Act 1974.
The following types of business must be licensed with the Office of Fair Trading:
- Consumer credit
- Consumer hire
- Debit adjusting and debt counselling
- Debt collecting
- Credit reference agencies
- Canvassing credit off trade premises
The Office of Fair Trading holds a public record of all licensed traders and of all those who have applied for a licence. They can provide details to the public about its licensed businesses, such as the type of activities they cover, their authorised trading names and main business address.
From 2008 most standard licences are issued on an indefinite basis, with a periodic maintenance charge.
The Consumer Credit Act 2006 introduced a new fitness test, giving the Office of Fair Trading powers to assess the fitness and competence of licence holders and applicants. The OFT may require licensees to comply with extra requirements and they can impose civil penalties of up to £50,000.
For further information and to apply on-line visit the Office of Fair Trading Website
