If your business sells goods or services on credit, lends money or provides debt counselling or debt adjusting services to consumers, you must certainly need to be licensed by the Financial Conduct Authority (FCA)
Providing or arranging consumer credit without a licence is a criminal offence and can result in a fine and/or imprisonment. Businesses cannot legally enforce a credit agreement if they are not licensed.
Under the legislation, set out under the Consumer Credit Acts 1974 and 2006 and the subordinate legislation, businesses must set out credit and hire agreements in a particular manner and make sure they contain specified information.
What you need to do now?
Want to know more? There is more information about the legislation on the FCA website.
For more detailed guidance go to Consumer Credit Regulation
For more information please go to the website of the FCA
Please note: This information has no legal force and is not an authoritative interpretation of the law, which is a matter for the Courts. It is intended to help those in business to understand in general terms, the main features of the legislation. The information is not a substitute for the legislation and you should refer to the text of the legislation for a full statement of legal requirements and obligations. Where appropriate, you should seek your own independent legal advice.
For further information, please contact the Trading Standards Service, Directorate of Operations and Regulatory Services, City of Newcastle upon Tyne, Civic Centre, Newcastle upon Tyne, NE1 8QH. Phone: 0191 2116121