UPDATE: Government set to offer CCL rebates
Posted on in Business News , Cycles News
The government is set to refund businesses who have been charged twice for consumer credit licences (CCL) following regulatory changes.
In April 2014, the Financial Conduct Authority (FCA) will begin taking over the regulation of consumer credit from the Office of Fair Trading (OFT), with an interim period of two years before assuming full control in 2016.
ACT openly shared their outrage at the announcement that during this interim period, businesses with a CCL would need to pay up to £350 for an interim licence to continue offering finance to customers - despite the fact that so many companies have already forked out for so-called indefinite licences.
The ACT also felt that the interim fees were too expensive in proportion to the work the FCA would do in the interim period while others raised the point they had recently bought indefinite licenses.
Following these complaints, the FCA has now said that firms will receive a rebate on their licence fees.
The regulator stated: ‘The government, having consulted the OFT and FCA, has decided that as a result of the transfer of consumer credit regulation to the FCA in April 2014, there will be a programme of rebates to consumer credit licence holders to reflect the closure of the OFT regime at 31 March 2014. This is designed to ensure that the cost of the transfer of regulation is proportionate.
It said that further details about how the rebates will be made, including the eligibility criteria and mechanism to be used, will be announced in the autumn.
The FCA is also offering a 30% discount to firms who register on or before 30th November 2013 for an interim licence. The discount will see firms pay £245 for interim permissions while sole traders would pay £105 instead of £150 with the discount.
It is recommended that all retailers with a current CCL visit fca.org.uk/clicked to register straight away or to find out more information on registering, including frequently asked questions and step-by-step guides.
ACT will bring you more details on the rebates as and when these are published.