The Consumer Credit Act 1974 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 annual membership fees in more than four instalments may need a consumer credit licence. However, whether or not a licence is required will be dependent on the individual circumstances applicable to the operation of each individual club such as whether or not 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.