Consumer Credit
FCA Authorisation
Specialist regulatory support for consumer credit lenders, credit brokers, debt advisers, debt collectors, and P2P lending platforms serving UK consumers.
Consumer Credit Regulatory Landscape
The consumer credit sector encompasses lending activities, credit broking, debt advice, debt collection, and peer-to-peer lending platforms. The FCA assumed regulation of consumer credit from the OFT in 2014, bringing significantly enhanced consumer protection standards.
FCA regulation has transformed the sector through the Consumer Credit sourcebook (CONC), introducing stringent affordability assessments, creditworthiness checks, and responsible lending obligations. The Consumer Duty further elevates expectations for fair value and customer outcomes.
Successfully navigating authorisation requires demonstrating robust affordability frameworks, comprehensive debt management procedures, and customer-centric business models that prioritize borrower welfare and financial resilience.
Typical Services
- Unsecured personal lending
- Credit broking and intermediary services
- Debt counselling and debt advice
- Debt collection and debt administration
- Peer-to-peer lending platforms
- Buy-now-pay-later (BNPL) services
Required FCA Permissions
Consumer credit firms require specific permissions based on their lending or intermediary activities.
Lending
Providing credit to consumers through loans, credit cards, overdrafts, or other credit facilities.
- Affordability assessments
- Creditworthiness checks
- Responsible lending policies
- APR calculations
Credit Broking
Introducing consumers to lenders or arranging credit agreements on behalf of customers.
- Lender panel due diligence
- Customer best interests
- Commission disclosure
- Clear explanations
Debt Adjusting
Negotiating or varying the terms of a consumer credit agreement on behalf of the customer.
- Debt solution suitability
- Fee transparency
- Client communication
- Creditor negotiation
Debt Counselling
Providing advice to customers about the liquidation of debts or debt management solutions.
- Qualified advisers
- Free debt advice
- Vulnerability support
- DMP administration
Debt Collection
Recovering debts due under credit agreements, including in-house and third-party collections.
- Fair treatment standards
- Forbearance procedures
- Complaint handling
- Vulnerable customer policies
Operating an Electronic Platform for P2P Lending
Operating a platform that facilitates lending between individual lenders and borrowers.
- Platform resilience
- Wind-down planning
- Investor appropriateness
- Loan book management
Key Regulatory Requirements
Consumer credit firms must demonstrate compliance with CONC and Consumer Duty frameworks.
CONC (Consumer Credit Sourcebook) Compliance
Creditworthiness and Affordability
Consumer Duty Requirements
Vulnerable Customers
Financial Promotions and Marketing
Financial Resources and Capital
Common Authorisation Challenges
Issues we frequently help consumer credit firms navigate during the FCA application process.
Building comprehensive affordability assessment processes that satisfy FCA expectations. We provide detailed frameworks covering income verification, expenditure analysis, and decision-making criteria.
Demonstrating robust creditworthiness checks beyond basic credit scoring. We help implement multi-faceted assessment methodologies incorporating credit data, income verification, and behavioral analytics.
Creating effective vulnerable customer identification and support frameworks. We develop comprehensive policies covering mental health, financial difficulty, and disability accommodations.
Establishing fair and compliant debt collection procedures. We implement forbearance frameworks, communication standards, and complaint handling processes aligned with CONC requirements.
For P2P platforms, demonstrating operational resilience and wind-down planning. We create comprehensive contingency plans, investor protection mechanisms, and loan book management strategies.
Embedding Consumer Duty principles across all customer touchpoints. We help design products for target markets, assess fair value, and implement outcome monitoring frameworks.
How We Support Consumer Credit Firms
Pre-Application
- Business model scoping and permissions mapping
- Affordability framework design and implementation
- Lending policy and credit risk framework development
- Technology and platform selection guidance
- Capital planning and financial projections
- Senior Manager identification and recruitment
Application Preparation
- Complete Connect application submission
- Creditworthiness and affordability procedures
- CONC compliance manual and policies
- Vulnerable customer framework documentation
- Financial promotions and marketing compliance
- Complaints handling and dispute resolution
Post-Submission
- FCA query management and responses
- Senior Manager interview preparation
- Additional information and clarification requests
- Conditional approval requirements fulfillment
- Post-authorisation compliance monitoring
- Ongoing regulatory support and updates
Ready to Get Authorised?
Speak with our consumer credit regulatory specialists to discuss your FCA authorisation.