What is the Consumer Credit Permission (CCP)?

The Consumer Credit Permission is a regulatory requirement issued by the Financial Conduct Authority (FCA) in the UK. It is mandatory for businesses involved in providing consumer credit or credit-related services, ensuring compliance with responsible lending practices and protecting consumers.

Who needs a Consumer Credit Permission?

The CCP is required for businesses offering loans, credit cards, or overdrafts; credit brokering services; debt collection and advising services; credit information or reference agency services; and payment services involving credit, such as Buy Now, Pay Later (BNPL) schemes and store cards.

What are the types of firms requiring authorisation?

The FCA specifies categories such as mainstream consumer credit lenders, high-cost lenders, motor finance providers, retail finance providers, limited permission lenders, and consumer hire firms.

What is the difference between Limited and Full Permission?

Limited Permission is for firms engaging in specific, low-risk credit-related activities, while Full Permission is for firms conducting a broader range of credit activities with more stringent regulatory requirements.

What is the process for obtaining a Consumer Credit Permission?

Prepare by understanding FCA guidelines and determining the required permission type. Submit the application with necessary documents, such as a business plan, financial forecasts, and compliance policies, via the FCA’s Connect system. Pay the applicable fees.

What are the ongoing compliance requirements?

Businesses must maintain accurate records, submit periodic reports to the FCA, adhere to Consumer Duty standards, ensure transparent communication with consumers, and regularly update policies and undergo audits.

What role does the Consumer Credit Permission play in the payment services sector?

The CCP covers emerging payment solutions such as BNPL schemes and store cards, enabling businesses to extend credit responsibly within the payment services ecosystem.

Why is the Consumer Credit Permission important for businesses?

The permission ensures fair and transparent lending practices, demonstrates regulatory compliance, and builds trust with consumers and stakeholders.

What happens if a business operates without a Consumer Credit Permission?

Operating without a CCP can result in severe penalties, including fines, legal action, and reputational damage. It may also invalidate agreements made under unauthorised credit activities.

How can your consultancy help with the CCP process?

We provide end-to-end support, including assessing your business’s needs, guiding the application process, ensuring compliance with FCA requirements, preparing documentation, and offering ongoing support post-authorisation.