When do i need a consumer credit licence

Home Business and self-employed Sale of goods and services and data protection. Offering credit to consumers: the law. Related content Apply for Financial Conduct Authority FCA authorisation Online and distance selling Invoicing and taking payment from customers Sell goods or services to the public sector Trading hours for retailers: the law.

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Thank you for your feedback. Consumer credit regulations apply to agreements, regardless of the amount of credit or the cost of the hire, where the borrower or hirer is:. You should seek legal advice before entering into a credit agreement with another business. Unless your business is a credit reference agency, you're unlikely to need licensing if you:. Remember - the rules don't just apply to specialist credit businesses.

If, for example, you run a small retail business that offers credit terms or hires out goods to consumers, you should check whether you need to be licensed. If your business requires consumer credit licensing and you trade without being licensed, you're committing a criminal offence that could result in a fine or a prison sentence - or both. If your business is made up of several companies, each engaging in a business activity for which a licence is needed, you must obtain licensing for each company.

Once you're licensed you must notify the FCA of any changes to your business. This includes changes to the officers of a company holding the licence, its controlling companies, members of a partnership, or even the business address. You must also notify the FCA of other relevant information such as court orders against the business.

You are required to do this within 21 days of the change taking place. You'll be listed as a licensee on the Financial Services Register. My New Business Northern Ireland business support finder Sample templates, forms, letters, policies and checklists Licence finder Find a case study Do it online.

Breadcrumb Home Guides Sales and marketing Selling and the law How to apply for a consumer credit licence. Consumer credit How to apply for a consumer credit licence. Criteria for consumer credit licences The FCA will only license applicants if they are a 'fit person' to be licensed.