§ Mr. BercowTo ask the Secretary of State for Trade and Industry if he will make a statement on the circumstances in which an individual or business is required to obtain a consumer credit licence. [65588]
§ Dr. HowellsIn general any business which provides credit under agreements which are regulated by the Consumer Credit Act 1974 is required to hold a consumer credit licence issued by the Director General of Fair Trading. The Act regulates agreements involving the granting of credit up to £25,000 to individuals, including sole traders and partnerships. Section 16 of the Act exempts some types of consumer credit agreement and businesses which only offer exempt agreements do not require a licence. Licences are also required by businesses and others who hire or lease out goods, arrange credit for others, collect debts, undertake debt adjusting and debt counselling, and by credit reference agencies.