The Financial Conduct Authority, which is administering the rebates, will write to most firms by the end of the year to explain more about the rebate scheme.
In a statement, the Department for Communities and Local Government said: “As part of a fair and proportionate transfer of consumer credit regulation, the government, having consulted the Office of Fair Trading and FCA, has decided there will be a programme of rebates to consumer credit licence holders.”
Brokers have demanded clarity on the rebate for so-called “lifetime” licences obtained from the OFT, which are to be replaced by interim licences issued by the FCA.
The FCA will now calculate the precise rebates due to individual firms based on how much was paid and how close the licence holder is to the five-year renewal date. Those who have most recently renewed their licence can expect larger pay outs.
Firms with email addresses will be contacted before Christmas, while the remaining licence holders will receive letters in the New Year. The FCA will also publish more details on its website soon.
