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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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We are a debt recovery firm and are currently completing our

Resolved Question:

We are a debt recovery firm and are currently completing our Full Permission paperwork for the Financial Conduct Authority to become regulated.
Whilst I have been reading through the paperwork it constantly relates to regulated credit.
As a company we collect for Nurseries, Dentists, Vets and Letting Agents and this debt is based around contracts and agreements.
I am wondering whether we need to be regulated by the FCA
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

How would the debts come about please?

Customer:

We sign clients to our service for one year and they pass debts that have arisen from non payment of Nursery Fees, rent and veterinary bills

Customer:

Most customers have signed contract with our clients, however our clients are not offering credit the debt is created by non payment of a service

Customer:

hello ?

Customer:

im sorry but are we still chatting please

Alex Watts :

so credit as such is not provided?

Customer:

no Alex our clients do not provide credit

Alex Watts :

Ok. Let me just have a little look at this.

Customer:

thank you

Alex Watts :

Right I have looked at this and also called the FCA

Alex Watts :

They define it as (and it can be found here):

Alex Watts :

http://fshandbook.info/FS/html/FCA/PERG/2/7

Alex Watts :

2.7.8D

Alex Watts :

An agreement between them and another that gives credit of any amount.

Alex Watts :

So if it is a case that the vet says its not an up front payment but I will send you an invoice, then yes it is credit (Although not a regulated credit agreement) and would need FCA approva

Alex Watts :

approva;

Alex Watts :

approval

Alex Watts :

So any type of credit. So even if its pay within 30 days, its credit.

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

A vet would expect payment immediately its when the customer says I've left my purse at home etc.I understand what you are saying though and it looks as if we need Limited Permission.

Customer:

Thank you for your help

Alex Watts :

Sadly yes.

Alex Watts :

Its any type of credit.

Alex Watts :

And this technically is.

Alex Watts :

Can I clarify anything else for you

Customer:

no that's fine thank you Alex

Alex Watts :

Great. If I could ask you to rate my answer before you go today please, the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

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