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An introduction to the OFT's consumer credit licensing work.
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:
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.
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.
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.
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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