Consumer credit

Application form and guidance for traders requiring a consumer credit licence.

Who does it apply to?

If you are a provider of credit then you may require a consumer credit licence. The most common form of providing credit is that of a credit broker.

What is a credit broker?

If you introduce people to sources of credit or hire, you are a credit broker.

For example, you may be a retailer who has asked a finance company to finance purchases made by your customers or perhaps you are a mortgage broker who helps someone to obtain a loan from a bank or building society to buy a house.

Credit brokerage also includes introducing people to other credit brokers.

When do the rules apply?

The legislation controls introduction to:

Virtually all sources of credit or hire where the amount sought does not exceed £25,000, also sources of mortgages of any amount for the acquisition or provision of a dwelling for occupation by the prospective debtor or a relative of theirs.

The requirements

To act as a credit broker you must have a consumer credit licence for your business. This licence is required by The Consumer Credit Act 1974 and is issued by The Office of Fair Trading.