Licence - credit
If a business offers credit or lends money to consumers, or
allows customers time to pay for goods and services, it must be
licensed with the Consumer Credit Licensing Bureau of the Office of
Fair Trading under the Consumer Credit Act 1974.
The following types of business must be licensed with the Office
of Fair Trading:
- consumer credit
- consumer hire
- debit adjusting and debt counselling
- debt collecting
- credit reference agencies
- canvassing credit off trade premises
The Office of Fair Trading holds a public record of all licensed
traders and of all those who have applied for a licence. They can
provide details to the public about its licensed businesses, such
as the type of activities they cover, their authorised trading
names and main business address.
In December 2003, the government proposed changes to the
consumer credit market - these include strengthening credit licence
rules, giving the Office of Fair Trading the power to fine
moneylenders and make surprise raids on debt companies, and making
small print bigger on adverts for financial products.
For further information see the
Office of Fair Trading.