THE City of York Council Trading Standards department provides information and advice to York residents be they consumers or businesses based in York.

This week we look at the law relating to consumer credit and consumer hire licences.

Did you know that to comply with the law, traders must have a credit licence to carry out certain activities in the field of providing credit or hire facilities to consumers?

Such licences are issued by the Office of Fair Trading, but Trading Standards work closely with that department to ensure that licences are not granted to traders who are not fit to hold one, and also to investigate offences involving consumer credit and hire.

There are several different kinds of trading activities involving credit which can only be carried on if you have a licence - these include businesses which offer hire purchase sales or cash loans, businesses which lease or hire goods, credit brokers and debt collectors.

Licences are valid for five years and any trader involved in transactions, which come within the scope of the Act, who does not hold a licence (or has an incorrect licence) commits a criminal offence.

A public register is available which holds information on consumer credit licence application under consideration, existing licences, revocations, suspensions or variations of licences.

In this month alone, the Office of Fair Trading has refused to grant a licence to a car parts retailer based in Jersey, a hearing aid consultant in the West Midlands, a motor trader in Lincolnshire, and a caravan dealer in the North East.

The office takes into account a number of factors about a business or anyone involved in running the business including any offence or conviction of violence or dishonesty, failure to comply with the provisions of the Consumer Credit Act or other consumer protection legislation, consumer complaints, evidence of unfair business practice or evidence of discrimination on grounds of sex, colour, race or ethnic/national origin.

The aim of the licensing system is to protect consumers and reputable credit traders alike. For further information or advice on credit and hire licences, contact City of York Trading Standards on 01904 552518.

Updated: 08:38 Thursday, May 05, 2005