Firms Regulated by the OFT for Consumer Credit Licences
If you are a Debt Management company affected by the recent OFT sector review please click here
Under the Consumer Credit Act 1974, the OFT is responsible for licensing consumer credit businesses. The OFT will assess if a business is fit to hold a licence before granting one. It will then monitor all licensees to ensure they are operating responsibly.
Since 6 April 2008 the OFT has adopted a more targeted, risk based, approach to consumer credit licensing, focusing resources on the areas of highest risk to consumers. As part of this approach, if your business carries out what the OFT has deemed to be high risk activities, you will need to have in place a Credit Competence Plan. This means that many businesses are subject to a higher level of scrutiny going forward; that is a greater level of monitoring by the OFT.
The OFT has issued guidance on its areas of regulation which it expects firms to follow. In line with the FSA's approach to regulation, the OFT now adopts a more intrusive and proactive policy to regulation and firms that fall below the mark can expect the OFT to take action against them. The OFT has the powers to impose heavy financial penalties on firms; take court action; and revoke or refuse a license.
Compliancy Services can help protect your business from the OFT. We can.
- Help you apply for a Consumer Credit Licence
- Assess your business to identify areas of non-compliance
- Help take the actions required to become compliant
- Provide an independent audit of your compliance status ongoing
- Train your staff in their regulatory responsibilities and the consequences of them ignoring them
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Call Claire Wilkinson today on 0844 324 5275 or click here to contact us.