Credit License is crucial for all credit service providers. The two most important names in this context are the Consumer Credit Act 1974 and the Office of Fair Trading. Credit License Laws are also important in the context of credit license.Description of Credit License A credit license is mostly provided in case of the consumer credit services. The credit licenses are used on an extensive basis in the United Kingdom and it is almost mandatory for a company that wishes to provide consumer credit services to secure a credit license.Importance of Credit License A credit license is an important factor as far as the service providers of credit are concerned. The primary reason behind such an assumption is the fact that the particular entities would not be regarded as authentic companies if they do not have the license. This in turn would affect their business prospects. Consumer Credit Act 1974 The Consumer Credit Act 1974 is of utmost importance in the context of credit licenses and the consumer credit companies. This law makes it necessary for any company, which is willing to provide consumer credit services in the United Kingdom to procure a credit license. Office of Fair Trading As per the regulations of the Consumer Credit Act 1974, the aspiring consumer credit entities need to get certified by the Office of Fair Trading. According to the regulations embodied in the Consumer Credit Act 1974 the companies that provide financial services for the purchase of services and goods also come under the jurisdiction of the Office of Fair Trading.
There are also some other entities related to credit that need to be recognized by the Office of Fair Trading:
Companies, which provide goods on either lease or hire
Credit License Laws As per the laws that bound the operation of the credit licenses, if a credit services provider is found to conduct business without possessing a proper license then he would be entitled to punishments. The punishments may range from fines to imprisonment.
Last Updated on : 9th July 2013