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Consumer Credit Licence - Important Reminder
Have you checked your consumer credit licence? Is it still valid?
Credit is provided where a person buys a product or service and is granted the right by the creditor to defer payment for that product or service.
Credit is therefore provided where Commercial product annual insurance premiums are paid in monthly instalments. Consumer credit agreements are regulated by the Office of Fair Trading (the OFT) under the Consumer Credit Act 1974 (CCA).
The following, however, are exempt from the CCA;
- The debtor is a limited company (ltd), or a public limited company (plc) or a limited liability partnership (llp)
- the amount of credit exceeds £25,000
All brokers must have a consumer credit licence if they introduce customers to Norwich Union via credit agreements, or if they provide advice on consumer credit or arrange credit facilities.
Where a credit agreement is entered into via an unlicensed broker, that agreement will be unenforceable without an order from the OFT.
Except for Premier Truck & Taxi and where exemptions apply all Norwich Union's Commercial Lines products paid by instalments are funded by regulated consumer credit agreements.
Norwich Union's Personal Lines products along with Premier Truck & Taxi business operate on a "Pay As You Go" basis (i.e. one month's cover is provided for each monthly premium paid during the period of insurance) and this method of operation is not regulated
Please ask your account manager if you have any queries regarding consumer credit licences and check out the OFT website at www.oft.gov.uk
