Obtaining a credit licence for a debt collection agency

[rickyhyde89]

I am thinking of starting a debt collection agency and I am looking for some advice with obtaining a credit licence.

I have 18 months experience in the home credit industry, both as a collector and a manager. Will this be enough to support my application?

Also do they check your credit file? I do have a default from a bank for overdraft fees should not have been added. The bank has cleared the fees now but it is still showing on my credit file. I have sent them a letter to try to get this removed. I was unaware of this default when I was applying for a mortgage 2 years ago and it did not stop me getting a £110k mortgage so I don't think it will effect my application.

 

[MichelleDunn]

I hope someone else can answer your question about a credit license in the UK. I am in the US and only know the licensing information here.
In my experience as a collector and an agency owner, you are ahead of the game since you have experience. I offer consulting on starting a collection agency and so many of my clients do not have any collection experience.
Good luck with starting your agency.
I did want to mention that now through Saturday my book Starting a Collection Agency how to make money collecting money is available free on Amazon.
I hope it is helpful to you! Good luck.
Michelle Dunn
MichelleDunn.com
credit-and-collections.com

 

[mcjohn]

If you are from UK then better to access licensing information of UK states. You can get license to collect debt from state credit bureau. You must have specialized knowledge and information of debt collection guidelines along with the experience in this field. Important thing is that you must have experienced from a licensed debt collection agency.

 

[businessfunding]

Some UK input..


It is unlikely that small financial issues will hinder your application, however for debt collection you will need to provide full details of how you will operate, risk assessment etc.

Best to contact the OFT to discuss.

 

[TOKN]

They will do a background check but one default shouldn't stop you. Just bear in mind it's almost never possible to have a default removed from your file as this would give an unfair representation to future creditors.

FSA will have everything you need.

 

[Mark@PFH]

Incorrect - Defaults are removed from the credit file after 6 years, you can apply to have them removed providing you have good ground and it is proven the default should not have been registered, however the company that registered the default must ask for that to be done.

In saying that, after watching 'Watch dog' the other night it would appear that not all the 3 agencies (experian, Equifax and the other one I cant remember) are quite up to speed.

 

[TOKN]

What I meant is it's unlikely that a company will take a default back; having put it on their. Referencing agencies can do a lot to your credit file, that doesn't guarantee they will, haha.

 

[Geoff T]

I hope someone else can answer your question about a credit license in the UK. I am in the US and only know the licensing information here.
In my experience as a collector and an agency owner, you are ahead of the game since you have experience. I offer consulting on starting a collection agency and so many of my clients do not have any collection experience.
Good luck with starting your agency.
I did want to mention that now through Saturday my book Starting a Collection Agency how to make money collecting money is available free on Amazon.
I hope it is helpful to you! Good luck.
Michelle Dunn
MichelleDunn.com
credit-and-collections.com

Out of curiosity - you wouldn't be this 'Michelle Dunn' would you?

if so - hail!

for those wondering - a DCA shouldn't be considered a "get rich quick scheme" - for those that get the wrong idea!

 

[Sparx]

Out of curiosity - you wouldn't be this 'Michelle Dunn' would you?

if so - hail!

for those wondering - a DCA shouldn't be considered a "get rich quick scheme" - for those that get the wrong idea!

Well that website is in the signature of her post you just quoted, so I am guessing yes..

 

[daniel.benson]

I hope someone else can answer your question about a credit license in the UK. I am in the US and only know the licensing information here.
In my experience as a collector and an agency owner, you are ahead of the game since you have experience. I offer consulting on starting a collection agency and so many of my clients do not have any collection experience.
Good luck with starting your agency.
I did want to mention that now through Saturday my book Starting a Collection Agency how to make money collecting money is available free on Amazon.
I hope it is helpful to you! Good luck.
Michelle Dunn
MichelleDunn.com
credit-and-collections.com

This has: "This time next year Rodney we'll be millionaires!" written all over it.

 

[vvaannmmaann]

OP have you seen this?
http://www.oft.gov.uk/OFTwork/credit-licensing/

 

[MichelleDunn]

Yes, that is one of my websites. Thank you for allowing me to be a part of your forum.

Michelle Dunn

 

[David A]

I am thinking of starting a debt collection agency and I am looking for some advice with obtaining a credit licence.

You firstly need to decide if you are going to be apply to be registered as an individual or as a Ltd Co.

In home credit, and IMO debt collection, Ltd is best. However, the OFT charge a few hundred pounds more for Ltd - with the fee now over £1,000.

You need to demonstrate that you are a 'fit and proper person' and have knowledge of the area you wish to embark on. For home credit, the sector I operate in also, membership of the CCA counts for a lot - the CCA will also help members with the form filling - and there are pages and pages of it. Research into a trade association for debt collectors and their relationship to the OFT might be beneficial.

Your financial blip won't affect matters at all. What the OFT is looking for is fraud convictions or acts of dishonesty and the like.

 

[Geoff T]

I'd also advice to get proper insurance cover...

This ISN'T to say you'd do it wrong, merely that the "USA Claim culture" has crossed the pond, and you need to cover yourself....