Rebates for consumer credit licence holders

Posted by Richard Humphreys on
Consumer credit regulation is transferring to the FCA from the OFT on 1 April 2014. As a result, the Government has decided to give some consumer credit licence holders a rebate (the "Scheme") of their licence fee so that firms do not have to pay for periods of their licence after the transfer to the FCA takes place. OFT licences will, of course, expire on 1 April 2014.

Will I qualify for a rebate under the Scheme?

  • You must have paid an OFT licence fee for a licence issued or renewed (or paid a maintenance fee) on or after 1 April 2009.
  • You must hold a standard licence or be the original applicant for a group licence that is still in existence on 1 April 2014.
  • You will be eligible if your licence would have expired at least one month after 1 April 2014.
  • You must not have:
    - received a letter from the OFT regarding its Irresponsible Lending Guidance Compliance Review in respect of the payday lending industry
    - received a visit from an officer of the OFT or an agent of the OFT.
  • Payments are suspended for those whom the OFT has informed it is:
    - minded to revoke a licence- minded to refuse a licence
    - suspending a licence.
  • Payments of less than £10 will not be made.
  • Applications after 30 June 2014 will not be accepted.
  • Under the Scheme, the FCA has a right not to make payment to an eligible licencee at any time.
  • How will I receive a rebate?

Most licencees will have already received an email from the FCA in December 2013 giving notice of the Scheme. If the FCA do not hold a valid email address for you they will be shortly contacting you by letter.

About the Author

Specialising in CCA compliance and FCA regulatory advice, Richard is a partner in Blake Morgan's Financial Services group.

Richard Humphreys
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01865 254243

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