You will see "Article 60B" mentioned across our site and documents. It is worth understanding, because it is the single rule that explains why borrowing from us is business lending rather than consumer credit — and what that means for your protections.
What Article 60B says
Article 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 — the "RAO" — defines a regulated credit agreement. Crucially, a regulated credit agreement requires the borrower to be an individual, a small partnership, or an unincorporated association. A limited company is none of those.
Because our borrowers are companies, our lending is not a regulated credit agreement. So it is outside FCA consumer-credit regulation, the Financial Ombudsman Service cannot consider complaints about it, and the Financial Services Compensation Scheme does not cover it.
What that means for your rights
It means the specific statutory protections of the Consumer Credit Act 1974 do not automatically apply, and the FOS/FSCS routes are not available. It does not mean there are no protections — we voluntarily apply several consumer-style safeguards because we think they are the right way to behave:
- a clear complaints procedure with defined timescales — see the escalation ladder;
- a 14-day withdrawal period on a new agreement;
- fair-treatment and vulnerability practices, and supportive handling of payment difficulty;
- a hard 100% total-cost cap, and no personal guarantee.
Why we are open about it
A reputable business lender should be clear about the perimeter it sits outside, not bury it. Knowing your lending is outside the consumer-credit regime helps you ask the right questions and weigh the protections alongside the price. For who can borrow on this basis, see what kind of lender Credicorp is.
This article is a plain-English explanation, not legal advice; the governing terms are in your agreement. Our lending to UK companies for business purposes is outside FCA consumer-credit regulation under Article 60B FSMA RAO 2001 and is not covered by the Financial Ombudsman Service or the FSCS.
See also: What is a CVA (Company Voluntary Arrangement)?, What is a SIC code?, A plain-English glossary of business-lending terms.