Consumer Credit License

This is just a quick reminder that if you have IVA cases then there is an assumption that you have given debt counselling advice to an individual. If you do give debt counselling advice then you need to have a consumer credit license.

The ICAEW and the ACCA both have group consumer credit licenses; therefore if you hold an insolvency license with these institutions and you are not doing large volumes of IVA’s you will not need to apply for an individual or firm license, you should be covered by the group license.

It becomes more complicated, however, where your firm is a member of the ICAEW or the ACCA and you are licensed by the IPA or BIS. The ICAEW have stated that if you do not hold an insolvency license with them then you are not covered by their group license even if the firm is a member of the ICAEW.

I have been told that the ACCA take a different view and provided the firm is a member of the ACCA even if you do not hold an insolvency license with them you are still covered by their group license.

My advice to anyone not licensed for insolvency by the ACCA or ICAEW but are relying on their group consumer credit license is have them confirm in writing that you are covered.

Where you have identified the need to apply for a consumer credit license then an online application may be made via the OFT website together with information about the process and the requirements. The process takes about three to six months.