How to Make Sure Your Lender Is FCA Authorised: A Simple Guide for UK Borrowers

If you’re thinking about borrowing money, whether it’s a payday loan, credit card, or buy-now-pay-later offer, let’s pause for a moment. You might feel pressure to get the cash you need quickly. But I want you to know this: the single most important step you can take to protect yourself is making sure your lender is FCA authorised. You deserve to borrow safely. And you have every right to expect fair treatment.

Why FCA Authorisation Matters for Your Money

First, let’s talk about what’s really at stake here. If you borrow from a lender who isn’t authorised by the Financial Conduct Authority (FCA), you are putting yourself and your money at serious risk. I’m not saying this to scare you. I’m saying it because I care. You deserve the facts.

The FCA is the UK’s main financial watchdog. Their job is to make sure lenders play by the rules. They make sure companies treat you fairly, check that loans are affordable, and have enough resources to operate safely.

If your lender is not FCA authorised, you are stepping into a world with no safety net.

What’s at Risk If You Skip This Step?

• No protection if things go wrong: Only FCA-authorised lenders must treat you fairly.
• No help if you’re scammed: Unauthorised lenders can disappear with your money, and you have no legal support.
• No way to complain: Without FCA authorisation, you can’t use the Financial Ombudsman Service if things get messy.
• No compensation: You won’t be covered by the Financial Services Compensation Scheme (FSCS) if the company fails.

If you’re using payday loans or high-cost credit, you are not alone. Many good people turn to these loans in a tight spot. But the right to fair treatment is yours. It starts with the FCA Register.

TIP: I have found that talking to someone you trust before taking out a payday loan, like a friend, family member, or free debt adviser, can help you step back and make a safer decision.

What Does FCA Authorisation Actually Mean?

Let’s break it down in plain English. An FCA authorised lender is a company that has been checked and approved by the Financial Conduct Authority. This means:

• They’ve passed strict background checks.
• They follow rules about treating borrowers fairly.
• They can only do what they are authorised to do. Nothing more.

Each FCA authorised lender gets a special reference number. This number is the key to checking if your lender is truly authorised, or just pretending.

FCA authorisation isn’t a “nice to have.” It’s the law. Any business offering you a loan, credit card, car finance, or even buy-now-pay-later should be FCA authorised.

What Types of Lending Does FCA Authorisation Cover?

If you’re wondering which types of loans and credit this applies to, here’s a quick list:

• Personal loans and payday loans
• Credit cards and store cards
• Buy-now-pay-later (BNPL) deals
• Hire purchase and car finance
• Debt management plans and advice
• Secured loans and mortgages (though mortgages have some separate rules)

In short: If a company offers you money to borrow, or helps you find a loan, they should be FCA authorised.

The Dangers of Unauthorised Lenders

It’s tempting to go with whoever offers you the fastest cash, especially if you’ve been turned down elsewhere. But if a lender isn’t FCA authorised, here’s what can happen:

• Hidden charges and sky-high interest rates
• No checks on whether you can afford the loan
• No right to cancel, or “cooling-off” period
• Aggressive or illegal debt collection tactics
• Total loss of your money in outright scams
• No help if something goes wrong

If you feel rushed, pressured, or uneasy, listen to your gut. A lender who isn’t FCA authorised isn’t worth the risk.

What Is the FCA Register and Why Should You Use It?

Now, let’s get practical. The FCA Register is the official online list of every firm and person authorised to provide financial services in the UK. It’s free to use. It’s updated every single day. And it’s the first place you should check before borrowing a penny.

The FCA Register shows you:

• The company’s full legal name (not just a trading name)
• Their FCA reference number (FRN)
• Their address and contact details
• What they are authorised to do
• If there are any warnings, restrictions, or enforcement actions

This is your first line of defence against scams and unauthorised lenders. If a company isn’t on the register, don’t use them.

What You Need Before You Search

Before you jump onto the FCA Register, make sure you have these details to hand:

• The exact legal name of the lender (not just what’s on their logo or advert)
• Their FCA reference number (FRN) is usually eight digits.
• The lender’s address and phone number (from their website or documents)
• Any emails, letters, or texts they’ve sent you

A genuine FCA-authorised lender will always show their FCA reference number on their website and paperwork. If you can’t find it, that’s a big red flag.

Step-by-Step: How to Check If a Lender Is FCA Authorised

Here’s how you do it. This takes less than five minutes. And it could save you from a world of trouble.

1. Go to the FCA Register
   Visit register.fca.org.uk.
   You don’t need to sign up or pay. The search is free.
2. Enter the Lender’s Details
   Type in the legal name or the FCA reference number.
   For best results, use both if you have them.
   If the name is common, use quotation marks around it (e.g., “Speedy Loans Ltd”).
3. Check the Search Results
   Look for the exact match for the name and FCA number.
   Make sure the address and contact details match what’s on the lender’s website or paperwork.
4. Click Through for Full Details
   Click the company name to open their record.
   Check for these signs:
   • Status: Must say “Authorised”
   • Permissions: For borrowing, look for “consumer credit lending” or “credit broking”
   • No warning or enforcement notices
   • The address should match the lender’s details
5. Double-Check for Red Flags
   Is the website address different to what’s on the register?
   Is the FCA number missing from their materials?
   Does their “status” say anything other than “Authorised”?
   Is there a warning or restriction?
   If anything feels off, stop. Do not sign anything or hand over personal details.
6. Save or Print Their Record
   You can save a PDF or print out the FCA Register entry.
   Keep it in your records, just in case.

How to Understand What the FCA Register Tells You

Let’s keep it simple:

• Authorised: The company has full FCA permission to do business in the UK.
• Appointed representative: The company acts under the control of another FCA-authorised firm. You need to check both names.
• Interim permission: The company has temporary permission. Look for expiry dates.
• Suspended/Revoked: The company cannot legally offer loans or credit at this time.

Always check that the FCA reference number matches exactly. If you’re unsure, contact the FCA for help before you borrow.

TIP: I always recommend taking a screenshot or saving the FCA Register page when you check a lender. This way, you have proof of what you found, in case there are questions later.

What If the Lender Isn’t On the Register or Is Suspended?

If you can’t find the lender on the register, or their status is anything except “Authorised,” here’s what to do:

• Don’t borrow. Walk away.
• Report the company to the FCA.
• Seek free debt advice from Citizens Advice or a reputable debt charity.

If the lender’s details don’t match up, such as a different address, no FCA number, or an unusual name, call the FCA or the genuine firm directly to check. Never trust information from a review site or advert alone.

When Should You Check FCA Authorisation?

Don’t just check once and forget about it. Make it a habit to protect yourself:

• Before you apply: Check before sharing your personal or bank details.
• Before you sign anything: Permissions can change at any time.
• While your loan is ongoing: Re-check every few months if you’re still making payments.
• If you get strange emails or texts: Double-check any new requests or contact details.

Remember, FCA authorisation can be suspended, revoked, or restricted at any time. Stay vigilant.

Red Flags: How to Spot a Scam or Fake Lender

Even a convincing website or ad can be a scam. Watch out for:

• No FCA number shown, or vague claims like “We follow FCA rules”
• Contact details that don’t match the FCA Register
• A website with a similar name but a different ending (like .net instead of .co.uk)
• High-pressure sales tactics, very low rates, or “guaranteed” approval
• Requests for an upfront payment before your loan is approved

If you’re ever in doubt:

• Report the firm on the FCA website
• Call the FCA Consumer Helpline: 0800 111 6768

Your Rights with FCA Authorised Lenders

When you borrow from an FCA-authorised lender, you are protected by law. Here’s what you’re entitled to:

• Clear and fair information: No hidden fees or tricks.
• Affordable loans: Lenders must check you can repay.
• Right to complain: If you’re treated unfairly, you can use the Financial Ombudsman Service.
• Compensation if things go wrong: If the lender fails, the FSCS may help.

If you think you’ve borrowed from an unauthorised lender, act quickly. Save all your documents. Contact Citizens Advice or a debt charity. Report the firm to the FCA. You do not have to face this alone.

A Simple Checklist: Confirming FCA Authorisation

Let’s make it easy. Before you borrow:

• Get the lender’s legal name and FCA reference number
• Check the FCA Register
• Match every detail: name, number, and address.
• Confirm “Authorised” status and relevant permissions
• Check for warnings or restrictions
• Save or print the record
• Report any problems to the FCA

Where This Leaves You and Your Borrowing Choices

You work hard for your money. You deserve to be treated with respect and honesty when you borrow. Checking a lender’s FCA authorisation is not just a “nice idea.” It’s your best line of defence against scams, unfair treatment, and financial loss.

Let’s put this into practice. Next time you consider a loan, credit card, or buy-now-pay-later deal, check the FCA Register before you do anything else. It takes less than five minutes, costs nothing, and could save you heartache down the road. If you feel unsure, ask for help. There’s no shame in protecting yourself.

You have the power to make safe, smart financial decisions. Checking for FCA authorisation is your first step. You are not alone, and there is always a way forward.

For extra support, visit fca.org.uk or call the FCA Consumer Helpline on 0800 111 6768.