Credit licensing

Under the Consumer Credit Act, businesses that offer goods or services on credit or lend money or are involved in activities relating to credit or hire must be licensed by the OFT.

The OFT has a duty to protect the interests of consumers by monitoring the fitness of those holding or applying for licences.

In considering fitness, the OFT takes into account a number of factors carried out by the business or anyone involved in running the business including:

• any offence or conviction of violence or dishonesty
• failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation
• consumer complaints
• evidence of unfair business practices
• evidence of discrimination on grounds of sex, race or ethic/national origin.

The OFT can refuse or revoke a licence if it decides that a trader is not fit to hold one. Where there are substantiated doubts about a trader's fitness, the OFT issues a 'minded to refuse' or 'minded to revoke' notice. This is a formal notice letting the trader know that the OFT is minded to refuse to grant a licence or to revoke an existing licence.

The Consumer Credit Public Register is maintained by the OFT. The register documents traders that hold a licence and any action taken against them. It also details traders that have applied for a licence. You can search the register online.

Further information

Find out how to apply for a consumer credit licence.

Find out more about the Consumer Credit Act and the work and role of the OFT in this area.

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