Compliance firm has good year 
with rule-change business model

Consumer Credit Compliance directors David Petty (left) and Ian Beardmore. (S)

Consumer Credit Compliance directors David Petty (left) and Ian Beardmore. (S)

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Changes to the way the consumer credit industry is regulated has seen the numbers stacking up nicely for a Yorkshire compliance expert.

Twelve months since launching Consumer Credit Compliance, Ian Beardmore has seen his firm, which is based in Harrogate’s Windsor House, hired by more than 250 firms – including national car dealerships, cosmetic surgery clinics and credit brokers – to handle new, compulsory licence application submissions.

Last April, regulation of the consumer credit industry was taken out of the hands of the Office of Fair Trading (OFT) and given to the Financial Conduct Authority (FCA).

It has now introduced a raft of new rules that companies operating in the consumer credit industry have to adhere to, as well as launching a new licensing scheme.

Failure to submit a licence application within a given timescale will result in companies being unable to offer any form of credit to customers.

Mr Beardmore, who has worked in the compliance industry for more than a decade, said: “When the Government first announced it was changing the body that regulates consumer credit I saw an opportunity. I spoke to David Petty, a friend and IT expert, about my vision, and, together, we launched Consumer Credit Compliance last January.

“Applying for the new licence is an incredibly complex task and one that can take several months of hard work before it is ready to be submitted to the FCA.

“And, once submitted, there is no guarantee the FCA will grant the licence. However, saying that, we have had a 100 per cent success rate!”

Mr Beardmore said that when the FCA took over the regulation, those in the credit consumer industry were offered temporary licences until their new applications had been accepted or rejected.

“If a company does not submit a licence application within an allotted timescale then it will no longer be able to lawfully offer credit,” he added.

Mr Petty said the company had been appointed by more than 250 companies, including some multi-nationals.

“And, with tens of thousands of companies requiring an FCA licence, we are looking to increase the business significantly, which will include a major recruitment drive,” he added. “We are also looking at breaking into other areas too where some form of compliance is needed in order for a business to operate.”