Consumer credit from 1 April 2016: SRA examples
Consumer credit from 1 April 2016: SRA examples

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Consumer credit from 1 April 2016: SRA examples

This Practice Note sets out a number of activities firms may engage in that stray into the realms of consumer credit. For each activity, the Practice Note summarises and explains SRA guidance on whether Financial Conduct Authority (FCA) authorisation is required.

The SRA may update these case studies in the light of changes to the Financial Services (Scope) Rules 2019. See Practice Note: Law firms and ancillary consumer credit business — Exempt Professional Firms regime

Work type Scenario SRA guidance
Debt recovery Debt recovery is:
—marketed as one of the firm's primary services
—conducted by non-qualified staff and managed by a solicitor
The firm is instructed by a financial institution to recover outstanding payments due under a credit card. The instructions are to:
—take steps to recover the debt
—consider whether it is commercially viable to continue should the debtor fail to respond
—not to issue proceedings or commence litigation
The firm will need to be authorised by the FCA in relation to its debt recovery activities because:
—the advocacy or litigation exclusion does not apply (presumably because the firm is expressly instructed not to commence proceedings)
—the service does not appear to be incidental