OFT licence fee rebate - Financial Conduct Authority

OFT licence fee rebate

Published: 24/07/2014
Some firms that held an OFT consumer credit licence may be eligible for a rebate of fees they paid before we took over regulation of the market on 1 April 2014.

The rebate scheme closed to new claims on 15 July 2014.

Firms offering consumer credit that paid fees to the Office of Fair Trading (OFT) before we took over regulation of the market on 1 April 2014 could claim a rebate until 30 June 2014.

We contacted these firms in December 2013 to explain the scheme and how to claim a rebate.

Since then we have sent over 50,000 cheques – totalling more than £24m – to eligible firms that had:

  • registered for interim permission
  • been licensed by the OFT after 31 December 2013, or
  • made an application via the FCA’s OFT Rebates web site (which closed on 15 July 2104)

Check your rebate claim

If you claimed a rebate before 15 July 2014 but have not received a cheque, you can check the status of your rebate by emailing ccrebates@fca.org.uk and quoting your OFT licence number.

How rebates were calculated

We calculated 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 was not based on the payment that you have made to the OFT. This is because the cost of a licence obtained from the OFT was 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 was 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 used 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

Find out more about the OFT licence fee rebate scheme including who qualified for a rebate.

You can also see our final rules for consumer credit firms.