Consumer Credit or Hire

The Office of Fair Trading issue and administer licences under the Consumer Credit Act 1974. However we can supply applications and amendment forms for the various categories of licence.

Your business will need a licence for the following activities:

Consumer Credit Business

If you lend money, offer credit or give people time to pay for goods or services, you are likely to need a Category A Credit Licence.

Consumer Hire Business

If you hire out, lease or rent out goods under transactions which may last for more than 3 months and where the total hire payments do not exceed £25,000, you are likely to need a Category B Credit Licence.

Credit Brokerage

If you do not provide credit or hire facilities yourself but introduce customers to someone who will, you are likely to need a Category C Credit Licence.

Debt Adjusting and Debt Counselling

If you help people with their debts by taking over their debts or negotiating on their behalf, you are likely to need a Category D Licence where the debts arise under Consumer Credit or Hire Agreements.

Debt Collecting

If you collect debts due to others arising from Credit or Hire Agreements not exceeding £25,000, you are likely to need a Category E Credit Licence.

Credit Reference Agency

If you collect information about the credit-worthiness of people with a view to giving it to others, you will be acting as a Credit Reference Agency and need a Category F Licence. Giving information based solely on your own dealings with customers however, does not make you a Credit Reference Agency.