How To Verify If Your Short-Term Lender Is Authorised To Extend Credit

Short-term lenders in the UK abound but beware of those who are merely out to take advantage of you. Here is what a UK financial regulatory body suggests before availing of financing:

Check with the appropriate register which governs consumer credits

Firms extending loans, including short-term facilities, are required to obtain interim permission before they are even allowed to operate as a financier. If you discover that the entity you are dealing with does not bear the necessary authorisations, stop dealing with them immediately. Otherwise, if you encounter abuses, the Ombudsman would not be able to assist you.

How to search and verify:

There are many ways of searching in the Consumer Credit Register. You can start doing so by keying in the name of the firm or its assigned reference number. By doing so you will be able to verify the following:

  • If it's authorised to extend consumer credit, including short-term credit;
  • Type of authorization granted; and
  • Important information such as contact numbers and details, trade names used, and its key businesses
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