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Office of Fair Trading

Lynn SimsLynn Sims Just JoinedRegistered Posts: 1
Hi

Can anyone help me.
I have recently renewed a Licence with the Office of fair Trading which was taken out by the previous owner about 5 years ago. He had the Licence as he was also an IFA.
He advised me that I would need to continue with this as the business gives out Credit References in relation to Mortgages, Loans and Rental agreeements.
The Category I selected was category I - credit reference agency, as this was the only one that seemed to be appropriate.
They have sent me a letter asking me to reselect but there is nothing on the form that seems more approriate !. They have currently kept my money.

I am now wondering if I need to licence at all. Has anyone else had this problem and can help me. Thanks Lynn Sims

Comments

  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    A lot of accountants give out mortgage references etc.
    I've never heard of this type of licence. Ever, and I've been in practice for over 5 years.

    Doesn't mean you don't need it, but I don't *think* you do. You aren't giving a credit reference, you are stating what someone's income was. I believe that's different.
  • farmergilesfarmergiles Font Of All Knowledge Registered Posts: 1,693
    I would ring the OFT and check out if you need this licence. If not, then ask them for a refund.
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    Did you notice the request for details of anyone with a Consumer Credit Licence in this month's The Professional?

    I asked the AAT to consider obtaining a group wide Consumer Credit Licence on behalf of MIPs but they will only do so if they perceive a demand for it.

    I have two problems with the way the question was asked:

    i) It only asks if any MIPs already have a licence - no good for those of us that don't know whether we really need one or not.

    ii) It gave no explanation as to the circumstances when one would be required.

    If anyone wants to support the AAT obtaining a group wide CCL then they should send a short email to [email protected].

    In answer to your question:

    A licence is not required for giving mortgage references to brokers for the reason explained by Faerie above but you may need one for other reasons.
  • claudialoweclaudialowe Trusted Regular Registered Posts: 275
    Dean

    Excuse my ignorance, but why would we need a consumer credit licence?

    Claudia
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    The guidance is not particularly clear but the following instances seem to require a licence:

    i) If your clients pay by monthly standing order and, once you have raised an invoice, that invoice will not have been covered in full within 4 months;

    ii) If a client comes to you in financial difficulty and wants to spread payment of your invoice over more than 4 instalments.

    I certainly have a number of clients in category i) and I would envisage a number of clients in the forthcoming year requesting time to pay arrangements too.

    I know that ICAEW, ACCA and ICAS all have group wide licences for their members so they do not need to acquire individual licences at a cost of £970 each.

    If the AAT were to acquire a group licence on our behalf the cost would be either £6,000 or £15,000 depending on numbers which is a considerable saving.

    Incidentally, I spoke to Aleem Islan earlier and he explained that the reason the question was worded how it was is to avoid the AAT being put in the position that it is aware of members who require a licence but do not have one.
  • claudialoweclaudialowe Trusted Regular Registered Posts: 275
    Email sent to Aleem. :thumbup1:

    Claudia
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