Calls on Businesses to Prepare for Consumer Credit Changes

The Office of Fair Trading (OFT) is calling on businesses to prepare for changes to the consumer credit licensing regime that come into force on 1st October 08.

Businesses offering debt administration or credit information services (including credit repair) will need to be appropriately licensed by the OFT.

The new debt administration licence category is required by those wishing to administer debts under consumer credit or consumer hire agreements on behalf of the creditor.

Any business carrying out these activities without a licence is likely to be committing a criminal offence and could face prosecution.

Businesses are encouraged to apply early for any licence categories they may need, so their application can be processed before the deadline.

For further information please visit the OFT website at: www.oft.gov.uk/news/press/2008/100-08

Alternatively download the OFT guide 'Do you need a credit licence?' from: www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/oft147.pdf (PDF 262kb)