Consumer credit
How to apply for consumer credit licensing
The Office of Fair Trading (OFT) will only license applicants if they are a 'fit person' to be licensed. As well as your own activities, those of your employees, agents or associates - past and present - are considered. Factors taken into account to establish fitness include:
- your competence to engage in the relevant activities
- any offence or conviction connected to the business or anyone involved in running the business
- any evidence of discrimination on grounds of sex, colour or race
- failure to comply with the Consumer Credit Act or other consumer protection laws
- any consumer complaints about the business
- business practices that are unfair or improper, or could otherwise damage the interests of consumers
- evidence of irresponsible lending
- insolvency, bankruptcy or disqualification as a director
- adverse information from other regulators, professional bodies, trade bodies, consumer organisations or other traders
- unauthorised use of the OFT name or logo (on letterheads or websites) to suggest that the business is 'approved' by the OFT
- failure to comply with general or specific guidance on fitness to hold a consumer credit licence
Download guidance on consumer credit licensing from the OFT website (PDF) - Opens in a new window.
The OFT can revoke licensing after it has been issued if it receives evidence that calls into question the fitness of a licensee. It can also impose requirements on licensed businesses if it is dissatisfied with any aspect of the licensed activities.
Licensing will be issued in the name of your organisation - if you're a sole trader it will be in your name, but must include any trading name under which your business intends to carry on consumer credit activity. It's a criminal offence to carry out any business activity that needs consumer credit licensing under a name that's not licensed.
If your business is made up of several companies, each engaging in a business activity for which licensing is needed, you must obtain licensing for each company.
Once you're licensed you must notify the OFT of any changes to your business, such as changes to the officers of a company holding the licensing, its controlling companies, members of a partnership, or even the business address. You must also notify the OFT of other relevant information such as court orders against the business. You are required to do this within 21 days of the change taking place.
You'll be listed as a licensee on the Consumer Credit Public Register, which is available to the public free of charge.
You can download consumer credit licensing forms from the OFT website. You can also obtain consumer credit licensing forms from your local Trading Standards office or by calling the OFT Consumer Credit Licensing Enquiry Line on Tel 020 7211 8608.
Subjects covered in this guide
- Introduction
- Does my business need a consumer credit licence?
- How to apply for consumer credit licensing
- Rules on credit agreements
- Rules on advertising credit
- How consumer credit rules businesses that hire out or lease goods
OFT Consumer Credit Licensing Enquiry Line
020 7211 8608
Actions
- Consumer credit licence application information on the OFT website - Opens in a new window
- Local Trading Standards office contact details on the Trading Standards Institute website - Opens in a new window
- Download a consumer credit licensing booklet from the OFT website (PDF, 205K) - Opens in a new window
- Use our interactive regulation checklist to create a personalised list of regulations and licences that affect your business
- Use our interactive tool to find regulations, licences, standards and trade bodies for your business
- View local and national events linked to this topic
