Consumer Credit Rebates

Many firms will already have received notification (and indeed cheques) in relation to rebates on OFT CCLs, given that the current regime is to cease after 31st March this year. however, some firms have not had these details ( or payments) and may be wondering what if anything they are entitled to.

The requirements are set out here in detail by the FCA but by way of a brief overview, please consider the following to see if you are likely to be  eligible or not. (Please note, this is just for guidance ... to be  certain read the requirements.)

• You must have paid an OFT licence fee for a licence issued or renewed on or after 1 April 2009 or you have paid a maintenance fee on or after that date.
• You must hold a standard licence or be the original applicant for a group licence that will still be in existence on 1 April 2014.
• Your licence would have expired or have terminated at least one month after 1 April 2014

There are a load of caveats included in the FCA / OFT rules for this but that is it in very broad terms.

The rebate you should get is based on the following rules:-

A x B / C where,

A = the amount paid to OFT in respect of the Consumer Credit Licensing Fee / Maintenance Charge
B=  the number of complete months remaining on the licence / charge
C= 60 (the number of months in five years)

NOTE: The figure in A will be  the amount that you paid less £140 (the Consumer Credit Jurisdiction (CCJ) levy to the Financial Ombudsman Service  - which is not refundable). There seems to be  a discrepancy on the FCA site about whether the CCJ is £140 or £150.

What if I have yet to pay a maintenance fee?

My reading of this is that you must ensure that if you are due to pay a fee to the OFT between now and 31st March, that you do so. if you do not, your CCL will lapse prior to 1st April and your extension to permissions with the FCA will not be  valid and you will have to make a fresh application ( with costs). If you do not make the payment you will fall foul of the rebate rules but then again if you are in this category you won't be  entitled to a rebate in any case and you won't have made a payment to be  rebated on. Obviously, this approach is only advisable if you are not planning to undertake CCL   activities after 31st March this year.

OF COURSE, YOU HAVE ALREADY APPLIED ONLINE FOR YOUR EXTENSION TO PERMISSION FOR CONSUMER CREDIT ACTIVITY AFTER 1ST APRIL...haven't you?