The OFT has today announced that fees for consumer credit licences will rise from 11 April 2011.

The OFT has a responsibility to scrutinise all licence applications to ensure applicants are 'fit' to hold a licence, which includes assessing competence.

Where businesses wish to engage in activities of high risk to consumers, such as debt counselling and secured sub-prime lending, the level of scrutiny is increased. Assessment can include site visits, staff interviews and compliance reviews.


If businesses are found to be unfit or to engage in unsatisfactory practices, the OFT will refuse or revoke licences, or impose formal

requirements. The OFT actively monitors the credit market and takes a wide range of enforcement actions.

The costs of these functions must be met by licence fee income.

From 11 April 2011, the following fees will apply:

• 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,
• 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.....Read more Here from the OFT