The Office of Fair Trading (OFT) has announced a rise in consumer credit licence fees.
The price hikes will come into force from 11 April 2011.
An application for or renewal of a standard credit licence for sole traders will now cost £435 for a five year period, an increase of £21 per year, while an application for or renewal of a licence for all other applicants will now cost £1075 for a five year period, an increase of £51 per year.
Applications for directions under sections 101 and 60 of the Consumer Credit Act will be charged at £1000 and the cost of amending details of an existing licence is unchanged (£80 for the large majority of variations).
The levy imposed on those licensees covered by the Consumer Credit Jurisdiction of the Financial Ombudsman Service remains £150 for a five year period.
Ray Watson, the OFT’s director of consumer credit, said: “We strive at all times to minimise costs for regulated businesses but we must fulfil our statutory duty to protect consumers in their dealings with credit businesses. This increase will allow us to do so.”””
