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De-bunking the confusion around Consumer Credit Authorisation

August 17, 2016

Many firms within the glazing industry are interested to learn more about consumer finance but are often dissuaded by the process of applying for Consumer Credit Authorisation (CCA), formerly known as a Credit Consumer Licence (CCL). To assist in de-bunking the mystery around this, GGFi’s finance partners Pay4Later are here to provide an easy overview on the basics of a CCA.  

What is Consumer Credit Authorisation? 

Consumer credit regulations apply to agreements where the borrower or hirer is an individual, a sole trader, a partnership with three or fewer partners or an unincorporated association, regardless of the amount of credit or the cost of the hire.

What will I gain by having Consumer Credit Authorisation?

Merchants can offer 0% over 12 months without a Consumer Credit Authorisation However, those with authorisation can offer a much boarder range of finance options including higher interest rates and longer term loans. This helps meet the needs of more customers and increases conversion.

What are the fees around authorisation? 

The application fee for authorisation depends on the firms consumer credit income and whether it will need limited or full permission. Many glazing firms will most likely apply for limited permission authorisation which costs either; £100 (if income from finance is under £50K) or £500 for all other firms.

How do I apply for authorisation?

The Finance Conduct Authority (FCA) is the regulatory body that grants permission for firms to carry out certain regulated activities. The FCA has an authorisation application video available online which provides a step-by-step guide to completing an authorisation application. Pay4Later work alongside a partner company who can assist with applications for a minimal fee. 

Where can I find information?

The team at Pay4Later are consumer finance experts and are always willing to assist with questions relating to this area. You can easily get in contact with them via email or telephone on 0800 021 7150, simply quote ‘GGFi Finance Facility’ as a reference.