How to apply for a credit licence - forms and procedures

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Introduction

On 6 April 2008 certain changes to the statutory test of fitness to hold a consumer credit licence came into effect. These changes result from the Consumer Credit Act 2006. As a result we now apply a more rigorous test of fitness to those applicants who apply for certain categories of licence that we consider pose a higher risk to consumers. Those applying for these categories have to satisfy the OFT that they are both fit and competent to engage in higher risk activities.

All traders should therefore only apply for those licence categories that cover the activities they propose to carry out in the course of their business. Applying for a high risk category which you do not need will mean that your application will be subject to more detailed scrutiny and you will be required to provide additional detailed information that otherwise would not be required. We may also need to visit you onsite. This may add to the time taken to process your application. 

Consumer Credit Directive

The Consumer Credit Act and regulations are changing as a result of implementation of the Consumer Credit Directive (CCD).  Regulations were laid on 30 March 2010 and are due to come into force on 1 February 2011. It will however be open to firms to comply before then if they choose. Details can be found on the Department for Business, Innovation and Skills (BIS) website.

Relevant OFT guidance will be updated in due course in the light of the CCD changes.

If you incorrectly apply for any non-commercial categories when in fact your business is operating on a commercial basis this will delay the processing of your application. Almost all businesses applying for a consumer credit licence will be operating on a commercial basis. If you or an associate charge a fee or otherwise receive remuneration in the course of carrying on any consumer credit or ancillary credit business you are operating on a commercial basis. The only organisations or institutions likely to require 'non-commercial' licence categories are non-fee charging charities or similarly altruistic organisations.

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Our current processing times

We recommend all applicants apply on-line. This will significantly reduce the likelihood of incorrect information being entered inadvertently and thus reduce the chances of your application being delayed.

Our target on low risk cases is to process 90 per cent within 25 working days. We have processed the large backlog of applications we had at April 2008 and are currently issuing 90 per cent of licences/variations/renewal licences within 25 days - 94 per cent within 35 working days.

Where applications include high risk licence categories we seek to process 75 per cent within 90 working days of receipt.

If you have not received your licence within 35 working days or 90 working days (low risk and higher risk respectively) please contact our enquiries team by email at enquiries@oft.gsi.gov.uk. Please mark enquiries for the attention of the Credit Licence Enquiry Team.

If exceptionally you have a pressing business case and need a licence as a matter of priority please write specifying the reasons to ccl@oft.gsi.gov.uk. We cannot guarantee swifter processing but if the business case clearly demonstrates exceptional need and no fitness, including competence, issues, we will endeavour to process your application faster. Please do not make a request unless the circumstances are demonstrably exceptional, this simply diverts resource from processing cases and we will not be able to meet your request.

Please see the General guidance for licensees and applicants on fitness and requirements (pdf 262 kb).

Relevant OFT guidance will be updated in due course in the light of the CCD changes.

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Completing an application form

You can apply online for a new licence, to renew, vary or to surrender an existing licence. You can also apply online to notify changes of address and/or details of officer/partner of a licensee.  Notifications of changes to company controllers must still be made on paper forms. The relevant form is available below. 

See fees page for details of how much it costs to apply for, renew, or vary a licensing agreement.

Before you complete your form(s), you should read the information on these pages about consumer credit licensing. Alternatively, read our introductory guide to consumer credit licensing, 'Do you need a credit licence?'

Download Do you need a credit licence? (pdf 205 kb).

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Renewal forms

You can apply to renew online up to one month prior to the expiry of your licence. In exceptional circumstances applicants will require a paper form which will be available by email. If you require a paper form, please contact our enquiries team by email enquiries@oft.gsi.gov.uk. We do not allow renewals to be made until one calendar month prior to expiry so please do not apply early. We published a general notice (pdf 44 kb) about this in December 2007

If you have not heard from us within three weeks of your licence expiry date, please contact us. Please note that a licence remains valid while the renewal is being processed as long as we receive your renewal application prior to the expiry date. Please pass this information on to organisations who may be concerned about a licence lapsing.

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Forms

In exceptional circumstances applicants will require a paper form which will be available by email. If you require a paper form, please contact our enquiries team by email enquiries@oft.gsi.gov.uk.

Please note: when you request the form you must state if you are a sole trader, partnership, limited company or other legal formation. This will avoid delay and ensure the correct form is sent to you. Your application will take longer to process if you do not apply online with any supporting documentation needed.  

The form which is currently unavailable online is to notify us of changes to company controllers for a limited company or limited liability partnership, and this is downloadable below. The form should be printed, completed in black ink and capital letters, and posted to the OFT at the address below.

• CC12/08 Notification of changes to company controllers for a limited company or limited liability partnership (148 kb).

Consumer Credit Licensing relocated to the OFT's office in central London in 2006. The address is:

Consumer Credit Licensing
PO Box 62691
London
EC4P 4UW
Telephone: 08457 22 44 99
Email: enquiries@oft.gsi.gov.uk

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