Written question asked by Lord Stevens of Ludgate (Conservative Independent), in the House of Lords. It was answered by Lord Jones of Birmingham (Other (affiliation)) on Monday, 22 October 2007.

Consumer Credit

Question: asked Her Majesty's Government:Whether consumer credit guidelines require amateur golf and other amateur sports clubs to obtain a consumer credit licence; and, if so, whether they will amend these guidelines so as to ensure that such clubs do not require a consumer credit licence.

Answer: The Consumer Credit Act requires that most businesses that offer goods or services on credit hold a consumer credit licence. Golf clubs and other private sports clubs which allow for payment of membership fees in more than four instalments may need a consumer credit licence. However, whether a licence is required will be dependent on the individual circumstances applicable to the operation of each individual club, such as whether the club is classified as ““carrying on a business””, if so whether this would be classified as ““occasional business”” and whether the particular club's agreements might be subject to any exemptions. Given that unlicensed trading is a criminal offence, the Office of Fair Trading advice has been for clubs to apply for a consumer credit licence if they are in any doubt. Agreements between clubs and their members may involve substantial loans and as such are as appropriately subject to regulation under the Consumer Credit Act as other types of agreements where credit is provided.

Secondary information

Type: Written question
Reference: 5430; 695 c75-6WA
Session: 2006-07
Related items: Sport: Amateur Clubs
Tuesday, 20 November 2007
Written questions
House of Lords; Sport: Amateur Clubs
Tuesday, 20 November 2007
Written questions
House of Lords
Subjects: Consumers Clubs Credit Licensing Golf Sports
Link: View this Written question on www.publications.parliament.uk