Consumer credit is one of the most heavily regulated areas in UK financial services. If your firm lends to individuals, brokers credit, manages debts, or collects on consumer credit debts, you need FCA authorisation with the appropriate permissions.
Which activities require permission?
Consumer lending, credit broking, peer-to-peer lending, debt adjusting and counselling, debt collection, and credit information services. Credit broking catches many firms out — even retailers offering third-party instalments may need it.
Requirements
The FCA focuses on consumer protection and the Consumer Duty. Capital varies by activity. Systems for creditworthiness assessments, affordability checks, and arrears management are essential.
The Consumer Duty impact
The Consumer Duty requires demonstrating four outcomes: products meeting customer needs, fair pricing, adequate understanding, and appropriate support. This must be woven throughout your documentation.
Common pitfalls
Weak affordability assessments, non-compliant financial promotions, and inadequate arrears management policies that don't demonstrate forbearance or account for vulnerable customers.
How Complizoom helps
Our Consumer Credit packages provide the complete documentation set tailored to your lending, broking, or debt management model.
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