Applying for consumer credit validation

Louise Wallis, head of business development, National Franchised Dealers Association

Some franchised dealers have already had landing slot deadlines to submit their application for full FCA approval for consumer credit. Key advice from NFDA head of business development Louise Wallis was to work through the form meticulously and, above all, to not miss the deadline, because dealers’ interim permission would immediately lapse and they would  have to cease sales.

Dealers must check their interim permission includes all the categories they’ll need, such as category C for credit brokering and D and E if they do finance settlements, and category A if the dealer is one of the minority that  lends its own money. Crucially, dealers can start putting the information together early, although they cannot submit the application until their landing slot opens. They can also view FCA videos and webinars or seek NFDA advice for guidance on making the application.

The decision dealers face is whether to apply for full permission or a variation of an existing permission. Dealers not already FCA authorised for insurance may be able to apply for limited permission, which has less regular reporting and demands. Those with FCA authorisation for insurance will apply for a variation, to add consumer credit categories to those permissions.