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Review of prior permission conditions for consumer credit services operating on premium rate


PhonepayPlus publishes changes to its regulatory framework for consumer credit services

09 December 2014

Today PhonepayPlus is publishing its final statement following a review of regulations, including prior permission conditions, for consumer credit services operating on premium rate telephone lines. This statement introduces new service-specific guidance in this area to ensure consumers get clear information up front before using credit broking services on 09 numbers and other PRS lines.

The Financial Conduct Authority (FCA), having responsibility for consumer credit services following the closure of the Office of Fair Trading (OFT), are introducing new rules for credit brokers on fees and transparency. These rules, coming into force on 2nd January 2015, are being introduced to address credit broking activities that are seen as putting consumers at risk. The new rules include:

- making sure customers receive clear information about who they are dealing with;

- what fees will be payable and when; and,

- clearly advertising that the organisation a consumer is dealing with is a broker.

In drawing up our Guidance, PhonepayPlus has worked closely with the FCA to ensure that our regulations are aligned with those FCA rules coming into effect on 2nd January. The Final Statement and appended Guidance below outline key points for consumer credit services operating by PRS, including:

- the scaling back of the prior permission requirement for consumer credit services during the remaining period of time in which the 12th code is in force; and,

- the requirements on providers of PRS consumer credit services in being compliant with the Code of Practice.

PhonepayPlus are aware that there are some complexities surrounding the shift away from prior permission conditions and towards the use of Code enforcement and the issuing of guidance is part of its support to industry as this transition takes place.

To read the final statement on the review of prior permission conditions for consumer credit services operating on premium rate, please click here.

To read the Service-Specific guidance note on consumer credit, please click here.

To read the Premium Rate Service-Based Consumer Credit Research Report, please click here.

For further information on the new rules being introduced by the FCA on credit broking, please click here.


Previous consultation document can be downloaded here:

PhonepayPlus Consultation prior permission consumer credit services Feb 2013

This consultation closed on the 2nd April 2013.

Consultation responses:

Action 4 
AIME 
BT 
Cash Finance Direct 
Citizens Advice 
Communications Consumer Panel 
Step Change 
txtNation