Consumer Credit Licence Help?!

[MikeJames]

Hi, i have currently applied for a CCL and as im waiting i have been offered to use a companies CCL for the time being.

for example lets say the company is called A who has the licence. I have a company who provides leads to debt management companies, so we will call my company, company B.

Company A has told me to state at the bottom of my letter head "Company B is a trading style of Company B - Company reg 123456 - CCL No 123456.

Is this possible to do? and would that affect any of my accounts?

Im very confused on this matter and want to remain fully compliant and to make sure my accounts are in order.

Many thanks

Mike

[bluebottle]

Re: Consumer Credit Licence Help?!

Hi Mike and welcome to Legal Beagles.

Your best course of action would be to contact OFT Credit Licensing. You can do this by telephone on 08457 224499 or by email to enquiries@oft.gsi.gov.uk and insert CREDIT LICENSING ENQUIRY in the subject box.

As for putting your business name as a trading style of another company on your business stationery, unless your business is part of the other company, you would be in breach of the Business Names Act 1985 and, possibly, Company Law, by doing so.

At this stage, you would be best playing things "by the book" as anything remotely dodgy could bring into question your fitness to hold a Credit Licence and this, in turn could jeopardise your application.

BB

[EXC]

Re: Consumer Credit Licence Help?!

Unfortunately OFT don't offer any advice other than that it publishes on it's site - which is a bit crap really.

This is the response I got when we approached them to ask whether we needed a CCL as we offer debt advice:

Thank you for your email to the Office of Fair Trading (OFT).

It is out of the OFT's legal remits to advise on whether or not a business requires a Consumer Credit Licence (CCL) nor can we advise on the categories a business may need to apply for. This is because we cannot be aware of the full facts of a business and only the courts can rule on legal matters.

I have attached our guidance document 'Do You Need A Credit Licence' (oft147) which was published to assist with general compliance.

Please follow the link below, if you require to apply for a consumer credit licence:
www.oft.gov.uk/cclforms

Please note, if you still remain in doubt after reading our guidance notes oft147, I can suggest you seek your own professional/legal advice.

[Guest]

Re: Consumer Credit Licence Help?!

HI
I received this following a query i made regarding the placing of advertisements on the CAG website and if this would represent a business under the act.

The website at 'www.consumeractiongroup.co.uk' (the CAG website) is owned by Reclaim the Right Ltd, company registration number 05783665, registered office 923 Finchley Road, London, NW11 7PE. Section 21(1) of the Consumer Credit Act 1974 requires that a licence is held to carry on a consumer credit business. We have now had an opportunity to examine the CAG website in more detail and our initial view at this time is that the CAG website is not 'carrying on a business' but is merely a collection of individuals who offer each other advice. Indeed the CAG website carries numerous disclaimers which advise its users that the advice contained on the site is provided by volunteers who hold no particular expertise or qualifications and that there is no guarantee of accuracy of any of the advice or information provided. The disclaimer also advises site users to contact a qualified professional. In the absence of substantive evidence that a consumer credit business is being carried on by Reclaim the Right Ltd through the CAG website our initial view is that Reclaim the Right Ltd do not require a consumer credit licence. In your further email dated 24 July you have raised concerns that the CAG website is placing advertisements for high interest (payday lenders) on its forum. The OFT has recently consulted on draft Guidance for Credit brokers and credit intermediaries. In its current draft format the guidance does suggest there is the potential for 'click throughs' to creditors' websites to be construed as brokerage, depending on the nature and presentation of any web-links. Whether or not a web-site is engaged in credit brokerage will depend on the way in which it operates, and will be a question of fact in each case. Please note that although the OFT has the power to take enforcement action against a licensee, we may be constrained from disclosing specific details about any action taken, should it be appropriate to take such action, until it is complete or reaches a stage where the law permits disclosure. Yours sincerely David AnnisEnquiries and Reporting CentreOffice of Fair Trading