Apply to become a consumer credit broker
If you want to engage in regulated activities as a consumer credit broker, you need to be authorised by us. Find out how to apply for authorisation.
On this page
- What to read first
- Prepare your application
- Limited or Full Permission
- Application fee
- Final check and submit
Read everything listed below
Start with our main 'how to apply' page for all firms
Prepare your application
Include your business plan and other supporting material
Pay the application fee
You must pay this in order to apply
Submit your application
You'll do this on our Connect system
This page is for:
- primary credit brokers (where your main business is helping customers find credit and hire agreements)
- motor dealers
- vets
- dentists
- gyms
- golf clubs
- other secondary credit brokers (where credit broking isn’t your main business, eg yacht brokers)
You'll need to demonstrate that you can consistently deliver good outcomes for retail consumers. Make sure you read everything below before you apply to ensure that your application goes smoothly.
What to read first
Our how to apply page explains:
- our expectations of all firms
- the application process
- how to avoid delays with your application
You must read this page in full before submitting your application through our Connect system.
Refer to the other page in this section that's relevant to your type of firm. This has extra information on what to include in your application, and the permissions you may need to apply for:
- primary credit brokers
- motor dealers
- vets and dentists
- gyms and golf clubs
- secondary credit brokers
Along with your application form, you'll need to provide a range of supporting documentation depending on your type of firm. This includes your:
Check what supporting material you need to include.
Review the letters we've sent to your sector.
This includes our Dear CEO letter that focuses on how you should implement our Consumer Duty, which requires your firm to put its customers’ needs first.
Our how to apply page explains:
- our expectations of all firms
- the application process
- how to avoid delays with your application
You must read this page in full before submitting your application through our Connect system.
Refer to the other page in this section that's relevant to your type of firm. This has extra information on what to include in your application, and the permissions you may need to apply for:
- primary credit brokers
- motor dealers
- vets and dentists
- gyms and golf clubs
- secondary credit brokers
Along with your application form, you'll need to provide a range of supporting documentation depending on your type of firm. This includes your:
Check what supporting material you need to include.
Review the letters we've sent to your sector.
This includes our Dear CEO letter that focuses on how you should implement our Consumer Duty, which requires your firm to put its customers’ needs first.
Prepare your application
You'll submit your application through our Connect system, so make sure you register.
Your application must include your:
- application form
- business plan
- financial forecasts
- other forms and supporting material relevant to your type of firm
Limited or Full Permission
You'll either have to apply for Limited Permission or Full Permission, depending on the regulated activities you engage in and the circumstances in which you carry them out.
You'll select one of these options when you start your application on Connect.
Limited Permission firms only carry out certain credit-related activities, so are subject to fewer threshold conditions (our minimum standards) than other firms. All other firms are Full Permission firms. Whether you're applying for Limited or Full Permission, the application process is the same.
How to determine whether you need Limited or Full Permission
If you're already authorised to carry on non-consumer credit activities (eg you're an insurance or mortgage broker), you'll continue to be a Full Permission firm regardless of which consumer credit activities you carry on.
If you don’t hold any other permissions, you'll be Limited Permission if you only carry on the regulated activity of credit broking in the following circumstances:
- Your main business activity isn't credit broking (or any other regulated activity excluding consumer hire); AND
- You intend to conduct credit broking for the purpose of, or in connection with:
- selling your own goods, or
- a service that you supply to customers; AND
OR
- You'll only ever introduce customers to lenders for the purpose of the customer entering into consumer hire and/or hire purchase agreements; AND
- You don't engage in the regulated activities of debt adjusting or debt counselling (these are activities brokers typically engage in when they help customers end one or more credit agreements, eg when advising on debt consolidation loans or part exchanging vehicles that are already subject to finance)
OR
| Broking Green Deal Plans |
|---|
| You only introduce customers to lenders that offer Green Deal plans, as defined in the Energy Act 2011. |
Common misunderstandings about Limited Permission
Remember that if none the criteria above apply to your firm, you'll be a Full Permission firm.
Here are some common scenarios in which applicants apply to be Limited Permission by mistake – if any of these points apply to you, you'll be a Full Permission firm:
- credit broking where introducing customers to lenders or brokers is a main business activity
- credit broking where the sale of goods or services takes place in the customer's home (ie if you're a domestic premises supplier)
- debt administration and debt collection
- debt counselling and debt adjusting when carried on as the firm's main business
- lending where you charge fees or interest, or where the agreements are hire purchase or conditional sale agreements
- providing credit references
- providing credit information services that aren't connected to Limited Permission activities
- operating an electronic system (peer-to-peer lending)
Application fee
You have to pay a fee to submit your application. The fee is non-refundable.
If you're applying for:
- Limited Permission your fee falls into pricing category 2
- Full Permission your fee will be higher, and the pricing category will depend on the regulated activities you intend to carry out
Find out more about our authorisation fees, including our pricing categories and how to pay.
Final check and submit
Before you submit everything on Connect, give it one more check to be sure you've included everything.
Our how to apply page has 3 top tips to ensure your application goes smoothly, and explains what happens after you've submitted it.
If you need more help
Please contact us on 0300 500 0597. We're open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.
