CCL Consumer Credit License

[sm505 0]

Hi Guys,

I've been running a motor trade company for about 4 years now and doing well as I have a niche market and target high end vehicles and only advertise exclusively to a certain market. I currently refer my customers wanting a car on finance to www.zuto.com. However, I've been advised to apply for a Consumer Credit License (Interim Permission) to be able to offer finance directly. I'm wondering if anyone can advise me on this as I have no experience on this and can't seem to get help online either.

I'd like to know:

1. What are the benefits of having a consumer credit license?

2. Once I get the CCL then what are the next steps? How to set up an account with lenders? Any recommendations on lenders?

3. Is it worth getting an interim permission or full permission?

Any additional information, most welcome.

 

Many Thanks

Shah

[ChrisG 0]

The advice you got is a bit out of date. You now need to apply for permission with the FCA.
https://www.the-fca.org.uk/fees-and-levies-consumer-credit

You will need limited permissions for credit broking, debt adjusting and debt counciling (for repaying debt on part-ex).
It's not zero work and then you ned to keep up all of the paperwork for the FCA.

When it comes to lenders, they like clean cars, a good track record and are focussed on dealers who dont have complaints. You need to get agreements in place with a few lendre sto serve, prime, near prime and subprime customers as each one has advantages and disadvantages.

If you don't want the paperwork or to register for the FCA consider recommending your clients to a smaller broker who will help you keep the customer.