Apply to become a consumer credit broker

If you want to engage in regulated activities as a consumer credit broker, you need to be authorised by us. Find out how to apply for authorisation.

What to read first

The application process

Our how to apply page explains:

our expectations of all firms
the application process
how to avoid delays with your application

You must read this page in full before submitting your application through our Connect system.

The page for your type of firm

Refer to the other page in this section that's relevant to your type of firm. This has extra information on what to include in your application, and the permissions you may need to apply for:

Supporting material

Along with your application form, you'll need to provide a range of supporting documentation depending on your type of firm. This includes your:

regulatory business plan
financial forecasts
required policies, procedures and other relevant forms on Connect

Check what supporting material you need to include.

Our letters to your sector

Review the letters we've sent to your sector.

This includes our Dear CEO letter that focuses on how you should implement our Consumer Duty, which requires your firm to put its customers’ needs first.

Our how to apply page explains:

our expectations of all firms
the application process
how to avoid delays with your application

You must read this page in full before submitting your application through our Connect system.

Refer to the other page in this section that's relevant to your type of firm. This has extra information on what to include in your application, and the permissions you may need to apply for:

Along with your application form, you'll need to provide a range of supporting documentation depending on your type of firm. This includes your:

regulatory business plan
financial forecasts
required policies, procedures and other relevant forms on Connect

Check what supporting material you need to include.

Review the letters we've sent to your sector.

This includes our Dear CEO letter that focuses on how you should implement our Consumer Duty, which requires your firm to put its customers’ needs first.

Prepare your application

You'll submit your application through our Connect system, so make sure you register.

Your application must include your:

application form
business plan
financial forecasts
other forms and supporting material relevant to your type of firm

Limited or Full Permission

You'll either have to apply for Limited Permission or Full Permission, depending on the regulated activities you engage in and the circumstances in which you carry them out.

You'll select one of these options when you start your application on Connect.

Limited Permission firms only carry out certain credit-related activities, so are subject to fewer threshold conditions (our minimum standards) than other firms. All other firms are Full Permission firms. Whether you're applying for Limited or Full Permission, the application process is the same.

How to determine whether you need Limited or Full Permission

If you're already authorised to carry on non-consumer credit activities (eg you're an insurance or mortgage broker), you'll continue to be a Full Permission firm regardless of which consumer credit activities you carry on.

If you don’t hold any other permissions, you'll be Limited Permission if you only carry on the regulated activity of credit broking in the following circumstances:

Credit broking for the purpose of, or in connection with, the sale of goods or supply of services
Your main business activity isn't credit broking (or any other regulated activity excluding consumer hire); AND You intend to conduct credit broking for the purpose of, or in connection with: selling your own goods, or a service that you supply to customers; AND You don't sell, offer to sell or agree to sell any of your goods or offer to supply any services or contracts to supply services whilst physically present in a customer’s home (ie you aren't a domestic premises supplier)

Broking Consumer Hire and Hire Purchase
You'll only ever introduce customers to lenders for the purpose of the customer entering into consumer hire and/or hire purchase agreements; AND You don't engage in the regulated activities of debt adjusting or debt counselling (these are activities brokers typically engage in when they help customers end one or more credit agreements, eg when advising on debt consolidation loans or part exchanging vehicles that are already subject to finance)

Broking Green Deal Plans
You only introduce customers to lenders that offer Green Deal plans, as defined in the Energy Act 2011.

Common misunderstandings about Limited Permission

Remember that if none the criteria above apply to your firm, you'll be a Full Permission firm.

Here are some common scenarios in which applicants apply to be Limited Permission by mistake – if any of these points apply to you, you'll be a Full Permission firm:

credit broking where introducing customers to lenders or brokers is a main business activity
credit broking where the sale of goods or services takes place in the customer's home (ie if you're a domestic premises supplier)
debt administration and debt collection
debt counselling and debt adjusting when carried on as the firm's main business
lending where you charge fees or interest, or where the agreements are hire purchase or conditional sale agreements
providing credit references
providing credit information services that aren't connected to Limited Permission activities
operating an electronic system (peer-to-peer lending)

Application fee

You have to pay a fee to submit your application. The fee is non-refundable.

If you're applying for:

Limited Permission your fee falls into pricing category 2, which will be £500
Full Permission your fee will be higher, and the pricing category will depend on the regulated activities you intend to carry out

Find out more about our authorisation fees, including our pricing categories and how to pay.

Final check and submit

Before you submit everything on Connect, give it one more check to be sure you've included everything.

Our how to apply page has 3 top tips to ensure your application goes smoothly, and explains what happens after you've submitted it.

If you need more help

Please contact us on 0300 500 0597. We're open Monday, Tuesday, Wednesday and Friday 9am to 5pm, and Thursday 9.45am to 5pm.

First published: 15/11/2023 Last updated: 15/11/2023