If you’re planning to be a Green Deal Provider in the delivery of the government’s Green Deal to UK households it is vital that you act now to obtain a consumer credit licence. Those businesses that fail to do so are likely to find that they are unable to operate.
The activities of Green Deal providers, in offering plans to domestic properties, require a consumer credit licence as the plan involves a finance package that spreads the cost of the measures over time. Whilst the Department of Energy and Climate Change (DECC) has been clear in its guidance about the need for providers to hold a consumer credit licence it is feared that many Green Deal providers may leave it too late to apply for a licence from the Office of Fair Trading (OFT). With the OFT quoting typical timeframes of 90 days for processing a licence businesses intending to provide the Green Deal should act now to ensure that they are licensed in time.
Applicants for a consumer credit licence must be able to demonstrate to the OFT that they are fit and proper in order for a licence to be granted. Thus those intending to apply for a licence should ensure that as a bare minimum they understand the legal obligations placed upon them by the Consumer Credit Act 1974 and that they are familiar with the documents and processes that will need to be followed both before a deal is made and during the life of the agreement.
Ensuring that these legal obligations are fulfilled is essential. Operating without a consumer credit licence is not only a criminal offence but would also mean that all deals made without a licence would be unenforceable against the customer. This would mean that the customer would have no obligation to pay for the finance that has been provided to them under the Green Deal. Similarly failing to ensure that the appropriate steps are taken, and credit documentation issued, before a contract is formed with a customer is likely to lead to potential challenges from customers at a later stage.
If you haven’t yet applied for a consumer credit licence, or
you are in need of assistance with the consumer credit documentation, you
should consider seeking professional assistance. Scott
Robert LLP is an advisory firm that specialises in OFT regulated consumer
credit and Green Deal Nationwide is pleased to confirm that its customers are
able to obtain a reduced rate on its services.
Contact Scott Robert LLP today on 0844 736 5327 or use the contact form below and we will put you in touch: