OFT licence fee rebate - Financial Conduct Authority

OFT licence fee rebate

Published: 22/04/2014
Some firms that held an OFT consumer credit licence may be eligible for a rebate of fees they paid. Find out what to do if you need to apply for a rebate.

We took over regulation of consumer credit from the Office of Fair Trading (OFT) on 1 April 2014.

The Government decided that as some firms had an OFT consumer credit licence that would have continued past 1 April 2014, they may be eligible for a rebate of fees they have paid. A rebate scheme was therefore created.

Most OFT licence holders will have received an email or letter from us in December 2013 that explained how the rebate scheme works. 

We posted cheques from January 2014 to eligible firms that had either:

  • registered for interim permission
  • been licensed by the OFT after 31 December 2013, or
  • paid a maintenance charge to the OFT

The Government passed legislation on 31 December 2013 allowing us to implement the rebate scheme. See the full details of the scheme and who qualifies for a rebate.

Apply for a rebate

If you are eligible for a rebate you may have already received a cheque.

If you have not received a cheque you should check if you are eligible then apply for a rebate by 30 June 2014.

Check your rebate claim

You can check the status of your rebate using your OFT licence number.

This information is updated weekly and was last updated at 10:00 on 22 April 2014. The next update is scheduled for 10:00-12:00 on 6 May 2014, during which time the system will be unavailable.

How rebates are calculated

We will calculate the rebate based on the number of complete months between regulation transferring to us on 1 April 2014 and either:

  • the expiry date, for a standard or group licence
  • the end of the relevant maintenance payment period for an indefinite licence

A proportion of your rebate will not be based on the payment that you have made to the OFT. This is because the cost of a licence obtained from the OFT is made up of:

  • the Consumer Credit Licensing Fee to the OFT (in 2013/14 this was £530 for a sole trader, otherwise £1,326), and
  • the Consumer Credit Jurisdiction (CCJ) levy to the Financial Ombudsman Service (in 2013/14 this was £140)

Your rebate will be a proportion of the Consumer Credit Licensing Fee only, as the CCJ levy is an ongoing responsibility of the ombudsman service.

This is the calculation we will use for your rebate amount:

[the amount paid to OFT in respect of the Consumer Credit Licensing Fee / Maintenance Charge]
Multiplied by [the number of complete months remaining on the licence / charge]
Divided by [60 (the number of months in five years)]

Rebate calculation examples

Indefinite licence held by a partnership, company or other organisation
Maintenance charge due date: 1 September 2016
Total fee paid to OFT: £1,225 (of which £1,075 Consumer Credit Licensing Fee; £150 CCJ Levy)
Complete months remaining from 1 April 2014: 29
Rebate calculation: £1,075 x 29 ÷ 60 = 519.58
Rebate amount paid: £519.58

Indefinite licence held by a sole trader
Maintenance charge due date: 1 September 2016
Total fee paid to OFT: £585 (of which £435 Consumer Credit Licensing Fee; £150 CCJ Levy)
Complete months remaining from 1 April: 2014: 29
Rebate calculation: £435 x 29 ÷ 60 = 210.25
Rebate amount paid: £210.25

Further information

You can find out more about the OFT licence fee rebate scheme including who qualifies for a rebate.