Group credit licence

A group licence may be issued where the OFT concludes that the public interest is better served by doing so than by obliging the persons concerned to apply separately for numerous standard licences (the public interest test).

Group licences are granted in terms that permit those covered by them to carry out specified credit activities, but only within their role as part of the group. The Consumer Credit Act 1974 excludes from the group licensing regime the canvassing of debtor-creditor-supplier or regulated consumer hire agreements off trade premises. A standard consumer credit licence is required for these activities.

Group licences are suitable for groups where the risk of consumer detriment arising from the activities of members of the group is low. Currently there are two broad categories of applicant that generally meet the criteria:

• advisory organisations with altruistic aims, and
• professional bodies, with established disciplinary arrangements, for whom credit is an adjunct to their prime business activity.

See more information on group licence holders.

Group licences will in general be issued for a five year period so as to enable the OFT to regularly hold a full review of the performance of the group licence holder and its membership.

Download the OFT report - Group licensing regime (pdf 135 kb)

Fees on application for a group licence received on or after 6 April 2008 and on application for renewal of a group licence due to expire on or after 5 April 2008.

Note - no fee is required where the application is made in respect of a group consisting of persons who make or require no charge, fee or commission in connection with the categories of business of debt adjusting, debt counselling, and/or credit brokerage to which the application only relates.

In all other cases:

• Where the application relates to a group of 1,000 persons or less - £6,000
• Where the application relates to a group of more than 1,000 persons and not more than 5,000 persons - £15,000
• In any other case, apart from an application falling within the note above - £30,000

Cycle to Work licence

The OFT has issued a group licence to cover employers implementing Cycle to Work schemes.

Back to: Consumer credit licences