Part X Ancillary Credit Businesses

Licensing

C1149 Regulated agreements made on introductions by unlicensed credit-broker.

1

A regulated agreement made by a debtor or hirer who, for the purpose of making that agreement, was introduced to the creditor or owner by an unlicensed credit-broker is enforceable against the debtor or hirer only where—

a

on the application of the credit-broker, the F1OFT has made an order under section 148(2) in respect of a period including the time when the introduction was made, and the order does not (whether in general terms or specifically) exclude the application of this paragraph to the regulated agreement, or

b

the F1OFT has made an order under subsection (2) which applies to the agreement.

2

Where during any period individuals were introduced to a person carrying on a consumer credit business or consumer hire business by an unlicensed credit-broker for the purpose of making regulated agreements with the person carrying on that business, that person or his successor in title may apply to the F1OFT for an order that regulated agreements so made are to be treated as if the credit-broker had been licensed at the time of the introduction.

3

Unless the F1OFT determines to make an order under subsection (2) in accordance with the application, F2it shall, before determining the application, by notice—

a

inform the applicant, giving F3its reasons, that, as the case may be, F2it is minded to refuse the application, or to grant it in terms different from those applied for, describing them, and

b

invite the applicant to submit to the F1OFT representations in support of his application in accordance with section 34.

4

In determining whether or not to make an order under subsection (2) the F1OFT shall consider, in addition to any other relevant factors—

a

how far, if at all, debtors or hirers under regulated agreements to which the application relates were prejudiced by the credit-broker’s conduct, and

b

the degree of culpability of the applicant in facilitating the carrying on by the credit-broker of his business when unlicensed.

5

If the F1OFT thinks fit, F4it may in an order under subsection (2)—

a

limit the order to specified agreements, or agreements of a specified description or made at a specified time;

b

make the order conditional on the doing of specified acts by the applicant.

F56

For the purposes of this section, “unlicensed credit-broker ” does not include a consumer credit EEA firm unless at the time the introduction was made that firm was precluded from making it as a result of—

a

a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or

b

a restriction imposed on the firm under section 204 of that Act.