Cost of consumer credit licences to rise

Published on

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.”””

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Tories put stamp duty abolition at heart of housing shake-up

The Conservatives have pledged again to scrap stamp duty as part of a housing...

Target Group adds Carla Stent to board

Target Group has appointed Carla Stent as a non-executive director, adding further financial services,...

Later life lending summit to focus on changing advice needs

Mortgage advisers will be encouraged to consider how longer borrowing lives and increasingly complex...

National Friendly launches mortgage-linked income protection cover

National Friendly has launched a short-term income protection product designed to cover mortgage payments...

Side hustles helping first-time buyers reach deposit targets sooner

Almost two-thirds of prospective first-time buyers are using additional sources of income to help...

Latest publication

Other news

Tories put stamp duty abolition at heart of housing shake-up

The Conservatives have pledged again to scrap stamp duty as part of a housing...

Target Group adds Carla Stent to board

Target Group has appointed Carla Stent as a non-executive director, adding further financial services,...

Later life lending summit to focus on changing advice needs

Mortgage advisers will be encouraged to consider how longer borrowing lives and increasingly complex...