User Tag List

Thanks Thanks:  0
Likes Likes:  0
Page 1 of 2 12 LastLast
Results 1 to 10 of 13

Thread: consumer credit licence

  1. #1
    Regular Member the fisherman's Avatar
    Join Date
    Feb 2009
    Location
    manchester
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default consumer credit licence

    does anyone no much about this?ive applied for one for our company and well was wondering once we get accepted how do i go about getting banks to give credit to people who want finance?

  2. #2
    Regular Member m8internet's Avatar
    Join Date
    Dec 2006
    Location
    Cumbernauld, Scotland
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    Once you have your licence you can then apply to any merchant and then act as an intermediary for them
    The type of merchant you chose really depends on the type of finance required by the client
    The licence also allows you provide and supply your own finance
    Once you have your licence read through the FSA policies to see if any additional requirements apply

    My company uses Capital Bank as this is the merchant arm of Bank Of Scotland, which is the bank we use
    Typically the bank will not provide finance directly to a third party
    Previous to this we used Black Horse, which was the merchant arm of Lloyds (TSB)
    Last edited by m8internet; 8th October 2011 at 13:24.

  3. #3
    Regular Member the fisherman's Avatar
    Join Date
    Feb 2009
    Location
    manchester
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    merchant?so would i just phone banks and ask?

  4. #4
    Regular Member m8internet's Avatar
    Join Date
    Dec 2006
    Location
    Cumbernauld, Scotland
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    You should already have a business bank account, so ask your account manager for the details of their provider
    They are obliged to give you a list of all their providers, not just one
    This is due to the variety of merchant providers, as some prefer vehicle finance others prefer mortgages, and so on

    As an example, the Bank of Scotland have a directory of over 200 to choose from
    Some have excellent commission rates, but have higher APR and charges plus they will accept almost any type of customer
    The downside is the customers may contact you about excessively high charges, charges for letters, and so on
    At the other end of the spectrum are the lower commission rates with lower APR rates and only accepting higher credit ratings

  5. #5
    Regular Member the fisherman's Avatar
    Join Date
    Feb 2009
    Location
    manchester
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    cheers bud i do have buisness account with yorkshire bank

  6. #6
    Regular Member m8internet's Avatar
    Join Date
    Dec 2006
    Location
    Cumbernauld, Scotland
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    Contact your business bank manager, they should be able to provide you with a list of suitable merchants, relevant to the sector you plan to offer finance in

    Equally, you would only need this licence if you are the company providing the finance (along with all the risks involved)
    Who advised you to apply for this licence?
    If the bank is providing the finance, then you do not need the licence the merchant holds it

    It is for this very reason none of our companies hold such a licence, we use a merchant for this and they take the risk

  7. #7
    Regular Member the fisherman's Avatar
    Join Date
    Feb 2009
    Location
    manchester
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    because we sell quite alot of cars we get alot of customers coming in or phoning to see if we do finance,so we decided to go get our own licence.as we been useing a freinds licence to get the finance and well weve done loads on it,so our freind we use will be the merchant?as we go through him to use his licence

  8. #8
    Regular Member m8internet's Avatar
    Join Date
    Dec 2006
    Location
    Cumbernauld, Scotland
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    I've personally never been in the position of using someone elses (or a different companies) finance provider or their finance and their licence
    Equally, this may fall foul of the FSA requirements

    I keep all finance transactions in-house, either through our bank or their recommended merchant
    The plus side is not requiring a licence and/or even having to handle the finance

    I would suggest reading their actual licence, I suspect they may actually be in breach and your customer not covered
    This could result in your customer walking away with the goods unpaid, and quite legally too

    As above, discuss with your business bank manager, I think they will be shocked this form of financing is taking place

  9. #9
    Regular Member the fisherman's Avatar
    Join Date
    Feb 2009
    Location
    manchester
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    i dont understand how you can give finance without a consumer credit licence?how do you manage it

  10. #10
    Regular Member m8internet's Avatar
    Join Date
    Dec 2006
    Location
    Cumbernauld, Scotland
    Problems Posted
    0
    Problems Solved
    0
    Best Answers
    0
    Good Answers
    0
    Post Thanks / Like
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)
    Vehicle InfoStats





    Default

    A Credit Licence is only required if you are the supplying financier, ie providing the money, and you are offering credit
    In the event the customer defaults they are liable to you directly

    With finance agreements, such as a HP agreement secured on a vehicle, this is not normally the case as the financier is a merchant provider
    The sales agent is then covered by the FSA and must adhere to their requirements, and the merchant will ensure this is the case
    In the event the customer defaults they are liable to the merchant

    As above, discuss with your business bank manager to determine which is more appropriate

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. moving a consumer unit??
    By paul.sessions in forum The 'Off Topic' room
    Replies: 5
    Last Post: 30th December 2012, 09:10
  2. Consumer Advice = guidance for members
    By Deztroyer in forum Vectra C / Signum Car Chat
    Replies: 20
    Last Post: 9th August 2012, 03:47
  3. Cost of replacing a consumer unit
    By peelmeister in forum The 'Off Topic' room
    Replies: 15
    Last Post: 12th May 2011, 16:04
  4. Are there any consumer groups that can help in a dispute with a VX Dealer?
    By vectravirg in forum Vectra C / Signum Car Chat
    Replies: 7
    Last Post: 6th February 2008, 02:36
  5. A bit of consumer testing
    By JCB in forum General Chat
    Replies: 4
    Last Post: 29th March 2006, 20:37

Visitors found this page by searching for:

Nobody landed on this page from a search engine, yet!

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •