Consumer Credit Licensing
If your business provides credit facilities (including hire, hire purchase, pawn broking and lending) or provides a debt adjusting or collection service, then you may need a Consumer Credit Licence. The licences are issued by The Office of Fair Trading (OFT)
To see if you need a credit licence; to apply for a licence; to change any of the details on your current licence or to renew your current licence please click on the following link to the OFT:
Office of Fair Trading (External link)
Credit Documentation
Where credit is provided to customers, the form and content of the agreements you have to provide is controlled by law.
For further guidance please visit the BIS website (Department for Business Innovation and Skills):
BIS (External link)
Credit Advertisements
If your business is showing in adverts that credit is provided, then you must comply with the legal requirements relating to credit adverts.
For further guidance please visit the OFT website:
Office of Fair Trading (External link)
Debt Collection
If your business is involved in debt collection guidance has been published by the OFT on what is “best practice”.
For further information please see the following guidance:
Office of Fair Trading (External link)
Failure to comply with the legislation may lead to one or more of the following:
- Loss of your consumer credit licence
- Prosecution and fine
- Your being prevented from enforcing credit agreements made with customers without having a court order
The information contained in this document is for general guidance only and should not be taken as being definitive. For further advice please contact a member of the Trading Standards Team.
