Client thinking of setting up a small loans business - what regulations?

Client thinking of setting up a small loans...

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A client is thinking of setting up a small loans business, and has enquired about what regulations would apply.

The loans would be 'retail' rather than to businesses.

The loan amount would be small (£250 or £500 mainly).

The repayments would be within a year, by weekly instalment.

The interest charge would be by way of a standard add on to the capital (for example a £500 loan would have £150 added on and then be repayable at £20 a week over 33 weeks).

Off the top of my head I suggested checking about a Consumer Credit Licence, and I suspect that this sort of business may be regulated by the Financial Services Authority.

Does anyone know any more of what would be involved to start trading in this manner please?

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