DIY Credit Licence not allowed!

legal updates

The moral of this story is that you can only trade in the name that is on the Credit licence.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

An individual, a Mr Clements, held a Consumer Credit Licence in his own name.  Mr Clements decided to form a Limited Company and amended the licence to reflect that change, he unfortunately ‘forgot’ to seek the Office of Fair Trading’s permission for that change and submitted the amended licence to Carlyle Finance in order to ensure continuity of business while he sought a new licence.

The OFT did not appreciate this manoeuvre which clearly contravened The Legislation and consequently he lost both his existing licence as well as his application for a new one in the name of the Limited company.

The moral of this story is that you can only trade in the name that is on the Credit licence.  If a change or addition is necessary then this MUST be carried out through the Office of Fair Trading, and approval granted.

DMS NavigatorDealer Management System software for Car Sales, Aftersales and eCommerce

Our dealers use us to help them be more Efficient and Profitable!

You can use our Dealer and Lead Management software to integrate all dealership departments, both online and physical ; providing all in-house functions; Invoicing, Stock Management, Accounting and Marketing as well as interfacing for advertising, ecommerce and more.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

While We Wait: Preparing for the FCA’s Review on Motor Finance Commissions

As anticipated, the FCA was not particularly helpful when questioned about the various issues of investigating complaints that were outside of the standard retention periods for documentation.

FCA Commission Review: Separating fact from fiction in the wake of scaremongering

Attend a complimentary seminar hosted by the FCA for first-hand information – Scheduled for Wednesday, 24 January 2024.

The FOS reports over 10,000 motor finance complaints: Are we really surprised?

The good news currently is the FCA is focussing its attention on the lender and not our members.

The FCA means business

The FCA are closely monitoring how firms are putting their new rules in place and will take action against those that aren’t following them.

Financial promotion on social media

The FCA’s supervisory approach to financial promotions in social media was issued in 2015.

Another victory, but the problem has still not gone away!

The FOS confirmed in the article they had not yet published any final decisions on commission-related complaints.

Mental Capacity – a person’s ability to make a decision

This is not a “one size fits all”, and you will need practices and procedures in place for such an eventuality.

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.