Check your Consumer Credit Licence – urgent!

legal_updates

If your business does any form of debt adjusting you must have 'Category D' on your credit licence.

Author: Dennis Chapman
Published:
Reading time: 2 minutes

This article is 9 years old.

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.

In a report by Automotive Compliance, it is suggested (by them) that up to 75% of car dealers do not have the necessary accreditation to transact under changes to the Consumer Credit Licence system.

If your business does any form of debt adjusting (paying off finance on part ex cars) you must have ‘Category D’ on your credit licence.

If your business engages in the provision of debt counselling then your credit licence must have ‘Category E’ on it.

In almost all cases Category E will need to appear on your licence if you pay off a customer’s finance for them because you will have advised (ie counselled) your customer about doing so.

It is especially important that you check now and if not have them added to your licence by the OFT by the end of August.

This is because from April 2014 credit licensing will be transferred away from the Office of Fair Trading and to the new Financial Conduct Authority (FCA).  But in September of this year the FCA will be contacting car dealers to register with them for ‘interim permission’ to continue using their credit licence.

You should therefore check your Credit Licence now because incorrect or incomplete licences may result in those interim permissions not being granted by the FCA  – this could cause great disruption to your business.

Where the FCA grants an interim permission all current credit licence holders will need to make a full submission to carry on using their licence post April 2014.

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.