Consumer credit licences

The Consumer Credit Act 1974 requires most businesses that offer goods or services on credit to be licensed by the OFT. Trading without a licence is a criminal offence and can result in a fine and/or imprisonment. Professions and trades are ‘businesses’ for licensing purposes.

From 2011 all sellers will require a consumer credit licence to offer credit to consumers. Previously where credit has been offered in four or fewer payments in a year sellers were exempt them from the requirement to have a consumer credit licence.

You will not require a consumer credit licence if you receive payment in advance for goods or services, as you will not be giving credit. If you are currently offering credit to patients but do not have a consumer credit licence, you should either stop offering credit or obtain a licence.

Information on the circumstances in which a consumer credit licence will be required and how to apply for one is available on the OFT’s website.

For further information visit the Office of Fair Trading’s (OFT) website at www.oft.gov.uk