Consumer credit licences

The Consumer Credit Act 1974 requires most businesses that offer credit or lend money to consumers to be licensed by the OFT - find out what kind of businesses need a credit licence and how to apply for one.

The Act includes where credit is arranged to finance the purchase of goods or services. Licensing arrangements may also be required by debt collectors, debt advisors and businesses that offer goods for hire or leasing. Trading without a licensing arrangement is a criminal offence and can result in a fine and/or imprisonment.

The Act also requires certain credit and hire arrangements to be set out in a particular way and to contain certain information.

If your consumer credit business deals with first charge mortgages, payment protection insurance or other types of insurance, then you may need permission from the Financial Services Authority to sell or administer regulated mortgage contracts and general insurance contracts. You risk a fine or imprisonment if you carry on mortgage or general insurance business without permission or arranging to become exempt. See the FSA website.

These pages tell you what kind of businesses need to be licensed by the OFT, how to apply, and the different fees. You can also download application forms and detailed guidance for applicants and holders.

Download General Notice regarding the CCJ industry levy for 2009-10 (pdf 75 kb).

More information on the Consumer Credit Act 2006 reforms is available here.

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