Penalties and requirements
It is important that you are aware of the penalties and requirements that can be imposed in regards to credit licensing.
Content on this page ...
Trading without a licence
It is a criminal offence to carry out any activities that require a consumer credit licence before a licence is issued to you, this includes publicly launching a website.
Unlicensed trading is punishable by a fine and/or imprisonment. Additionally, if any of your customers were to default on a payment, you would not be able to enforce the credit agreement made while you were unlicensed without making a special application to the OFT.
Undertaking activities not covered by your licence
If you have a licence, it is an offence to carry out any licensable activities that are not covered by that licence, see details on licence categories.
This is also unlicensed trading and is punishable by a fine and/or imprisonment.
Trading in a name not on your licence
It is a criminal offence to carry out any activity that requires a consumer credit licence under a name that is not on your licence. Any websites used for licensable activities must also be named on the licence. If your details change you should let us know immediately, for more information see changing details on a credit licence.
Businesses must inform the OFT of changes to their information within 28 days and failure to do so may result in a financial penalty of £2,000.
Duty to Notify of changes in information provided by licensee
Businesses must inform the OFT of changes to their information within 28 days and failure to do so may result in a financial penalty of £2,000.
You must notify changes in particulars entered in the Public Register within 21 working days of the change. Failure to notify us could result in a fine or imprisonment.
Refusing a licence application and/or imposing requirements
If you are applying for a new credit licence we will assess your fitness (pdf 263kb) to hold a licence and we can:
- grant a licence in accordance with an application
- grant a licence on different terms to those applied for
- impose conditions (called requirements) on your licence
- refuse applications for new licences.
If you have a credit licence and don't comply with the relevant legislation and guidance we can:
- impose requirements on your licence
- impose financial penalties of up to £50,000 for a breach of requirements
- suspend, vary or revoke your licence.
Licensees are able to appeal against any decisions the OFT makes.
More information
For more information on penalties see the statement of policy on civil penalties (pdf 111 kb).
For more information on requirements, see the guidance on fitness and requirements (pdf 147 kb) which explains how you should comply with the legislation and OFT standards.
Back to: Credit licensing
Recently viewed pages
This feature requires Javascript and Cookies to be enabled on your browser
Email alerts
Register for email alerts or amend your existing account details here.