HC Deb 08 March 2001 vol 364 c288W
Mr. Alexander

To ask the Secretary of State for Trade and Industry if he will make a statement on the penalties which are applied to unlicensed money lenders. [152407]

Dr. Howells

The Consumer Credit Act 1974 set up a licensing regime for individuals, companies and firms carrying on regulated consumer credit or consumer hire business. Therefore, generally, a money lender is required to obtain a licence in order to carry on its business. Licences are issued by the Director General of Fair Trading and it is a criminal offence to engage in regulated consumer credit (or consumer hire) business without one.

Section 167 of, and Schedule 1 to, the Act set out the penalties for this offence, which are:

  1. (a) Summarily—The prescribed sum within the meaning of the Magistrates Court Act 1980 which is currently £5,000.
  2. (b) On indictment—Two years imprisonment or a fine or both.