Q&As

Where private mortgages or legal charges are agreed in order to secure care home fees owed by an individual to a commercial client or to protect monies loaned to assist a friend or family member in the purchase of a residential property, Can such work be undertaken without an FCA licence under the current consumer credit activities regulatory regime? Are such legal charges or mortgages caught by the Consumer Credit Act 1974, and if so what formalities need to be complied with? Are there any exemptions which may be of assistance? In the case of a commercial client, looking to enter into a number of such agreements with their customers, should the client be advised to consider whether they require an FCA licence to enter into such multiple arrangements in the capacity of 'lender'?

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Published on LexisPSL on 01/10/2015

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • Where private mortgages or legal charges are agreed in order to secure care home fees owed by an individual to a commercial client or to protect monies loaned to assist a friend or family member in the purchase of a residential property, Can such work be undertaken without an FCA licence under the current consumer credit activities regulatory regime? Are such legal charges or mortgages caught by the Consumer Credit Act 1974, and if so what formalities need to be complied with? Are there any exemptions which may be of assistance? In the case of a commercial client, looking to enter into a number of such agreements with their customers, should the client be advised to consider whether they require an FCA licence to enter into such multiple arrangements in the capacity of 'lender'?
  • Regulation of consumer credit
  • Will the consumer Credit Act 1974 apply?
  • Does an exemption apply?
  • Regulated agreements

Where private mortgages or legal charges are agreed in order to secure care home fees owed by an individual to a commercial client or to protect monies loaned to assist a friend or family member in the purchase of a residential property, Can such work be undertaken without an FCA licence under the current consumer credit activities regulatory regime? Are such legal charges or mortgages caught by the Consumer Credit Act 1974, and if so what formalities need to be complied with? Are there any exemptions which may be of assistance? In the case of a commercial client, looking to enter into a number of such agreements with their customers, should the client be advised to consider whether they require an FCA licence to enter into such multiple arrangements in the capacity of 'lender'?

Regulation of consumer credit

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