The commission normally comes from the individual or institution offering credit, and the broker is therefore not entirely objective.
[1] In British law, credit brokers are covered by the Consumer Credit Act 1974 and the Consumer Credit Act 2006, which defines a credit broker not just as a mortgage or loan broker, but also as a vast range of other intermediary bodies such as car dealers, shops that introduce customers to financial houses for hire-purchase agreements and solicitors who negotiate advances for non-corporate clients.
Under the 1974 Act, such businesses require licenses from the Office of Fair Trading.
In this situation, agreements are only enforceable with a direct order from the Director General of Fair Trading.
[3] This only comes into effect if enforcement is sought through the courts, however; it has been pointed out that agreements can still run their course regardless of the status of the broker.