Do you require FCA authorisation?

Understanding whether you need to be authorised by the Financial Conduct Authority (FCA) is essential! You cannot legally lend, collect or give advice on debts if the person you are dealing with is a ‘relevant recipient of credit’.

You need to be authorised by the FCA if you:

Lend, collect debts or give advice, in relation to:

• an agreement for credit (meaning: providing money or finance which is to be repaid over a period of 12 months or more OR providing money or finance which is to be repaid with interest/charges OR providing a product or service which is to be paid for in instalments which are to be repaid over a period of 12 months or more OR providing a product or service which is to be paid for in instalments with interest / charges)

• is provided to an individual, sole trader or partnership (i.e. not a public limited company or a private limited company)

If you do the above, or exercise the rights of the lender such as recovery action on debts, you should be authorised by the FCA for the activity you undertake.

If you need any confidential advice about becoming authorised or maintaining your authorisation please do not hesitate to contact us.

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