31 March 2014

Important changes to Consumer Credit Licences

Regulation of consumer credit is changing.

The Financial Conduct Authority will take over regulation of consumer credit from the OFT on 1 April 2014.

All firms who currently hold a Consumer Credit Licence (CCL) will only be able to trade under their existing CCL until the 31 March 2014. All consumer credit licences expire on this date at midnight and if you have not taken action you will not be able to continue your licensable activities.

If your business sells goods or services on credit, offers goods for hire or provides debt counselling or debt adjusting services to consumers, you almost certainly need to be licensed by the FCA.

Engaging in licensable credit activities without a credit licence is a criminal offence, and can result in a fine and/or imprisonment. Businesses cannot normally legally enforce a credit agreement if they are not licensed.

You can register with the Financial Conduct Authority online at: http://www.fca.org.uk/clicked?gclid=CLfnzf21sL0CFZShtAodYHUA3A