CONP11846 – Application for a High-Cost Credit Business Licence

Jurisdiction: Country: Canada | Province/State: Alberta

What is a CONP11846 – Application for a High-Cost Credit Business Licence?

This form is the official application to get licensed as a high-cost credit business in Alberta. You use it to ask the provincial regulator to approve your business to offer or arrange high-cost consumer credit. It applies whether you operate a storefront, an online platform, or both. The licence is required before you advertise, negotiate, or enter into these credit agreements with Alberta consumers.

High-cost credit means consumer credit with a higher cost of borrowing than the general market. The law sets a threshold to define “high-cost.” If your product or offer crosses that threshold, you fall into this category. This can include installment loans, lines of credit, and lease-to-own products. It can also include brokering or arranging credit on behalf of lenders. Payday loans are licensed under a separate regime. If you are unsure whether your product is high-cost credit, assume the regulator will check your effective annual rate and all fees.

The form is used by owners and operators of credit businesses. That includes corporations, partnerships, and sole proprietors. It also includes brokers and lead generators who match consumers with high-cost lenders. Franchise systems and multi-branch operators use it to license each Alberta location. Out‑of‑province companies use it if they market to Alberta residents. The test is where the consumer is, not where your head office sits.

You need this form to comply with Alberta’s consumer protection laws. Operating without a licence can trigger serious penalties. It can also put your contracts at risk. The licence is the regulator’s way to screen fitness, verify ownership, and set conditions. It helps ensure you follow rules on disclosures, interest calculations, fees, advertising, and collections. The form asks for detailed information so the regulator can assess risk and protect consumers.

Typical usage scenarios include

• You are starting a new high-cost lending store.
• You might be launching an online instalment loan platform that targets Alberta borrowers.
• You may be a retailer offering lease-to-own furniture with a high effective rate.
• You could be a broker site that collects applications and forwards them to lenders for a fee.
• You may be acquiring an existing licensed business and need to transfer or reapply.
• You might be adding a new Alberta branch and need a licence for that location.
• You may also use this form after a major reorganization, such as a change of control or new directors.

The form creates a single, official record for your licence application. It collects your legal name, trade names, ownership, and locations. It confirms your business activities and the types of credit you will offer. It lists your directors and officers and asks background questions. It captures your consent to checks and authorizes the regulator to verify your statements. It also ties your licence to required security, such as a bond or letter of credit. You must sign a certification that the information is true and complete.

When Would You Use a CONP11846 – Application for a High-Cost Credit Business Licence?

Use this form when you plan to offer high-cost consumer credit to Alberta residents. You would file it before you open your doors or launch your site. You also use it when you expand your activities into Alberta from another province. If you add a new Alberta location, you will use it to license that site. If you change your business model and start offering products that meet the high‑cost threshold, you need to apply. Start early. The review takes time, and you cannot operate until the licence is issued.

A sole proprietor would use the form when converting from financial coaching to brokering high‑cost loans. A partnership would use it when adding a lease-to-own line of business in Alberta. A corporation would use it when launching a chain of installment loan stores. An online-only operator would use it when accepting applications from Alberta IP addresses or mailing addresses. A franchisor may help franchisees complete the form for each franchise location. A franchisee must still be the actual licensee if it is the business offering the credit.

You would use this form after buying a licensed business if the licence cannot be assigned. Most licences are not transferable. If you complete an asset purchase, you will need your own licence. Use the form to apply in advance. If you complete a share purchase, you still need to report control and director changes. In many cases, material changes require approval or a new application. Use the form to capture the new corporate details and ownership.

You also use the form when your licence lapses and you need to reinstate. If you missed a renewal deadline, you must stop operating. A fresh application may be required. Use the form to restart. If you add new trade names or rebrand, you need to update the licence. Some changes can be made by amendment, but adding locations often requires a full application. Use the regulator’s instructions on when a new form is needed versus a change request.

Use the form if you are moving from payday lending to installment lending at high rates. These are different regimes. You cannot rely on a payday licence for high-cost products. Use the form if you move from pure lead generation to active brokering. Once you start matching consumers to specific lenders and collecting sensitive data, you likely need a licence. Use the form if you will advertise to Alberta consumers. Advertising can trigger licensing if it invites Alberta residents to apply.

A common trigger is pricing changes. If a new fee structure raises your effective annual rate above the threshold, your product becomes high-cost credit. You now need the licence. Another trigger is a new lease-to-own offer where the total cost to own exceeds limits. That also brings you into scope. When in doubt, apply. The regulator would rather you be licensed than operate in a grey zone.

Legal Characteristics of the CONP11846 – Application for a High-Cost Credit Business Licence

The application is legally significant. You sign a certification that your statements are true. That certification is binding. False statements can lead to refusal, suspension, or prosecution. The form also includes consent for background checks. The regulator can verify identity, ownership, and history. The regulator can contact other agencies and check public records. Your consent lets them do this lawfully.

The licence you seek is mandatory for high-cost credit activities in Alberta. The requirement comes from consumer protection law and regulations. The regulator can refuse a licence if you, your partners, or your directors are not suitable. They will assess honesty, integrity, competence, and financial responsibility. They will also check for past contraventions, bankruptcies, and prior licence issues. The form gives them the information to make that decision.

What ensures enforceability?

Enforceability comes from statute. If issued, the licence comes with conditions. These conditions can include record-keeping, disclosure, advertising standards, and security. Breaching a condition can trigger discipline. The regulator can impose terms, amend the licence, suspend, or cancel it. They can also issue administrative penalties or prosecute offences. Operating without a licence can lead to fines. It can also expose your agreements to court challenges. In some cases, you may need to refund charges or forfeit interest.

The form also interacts with privacy law. It collects personal information about owners and officers. You must have their consent to disclose it. The regulator will use and protect it under applicable privacy rules. The form usually states the authority for collection and the purpose. Keep copies of consent and inform your team. If you use an agent to complete the form, ensure they handle data securely.

Another legal feature is the security requirement. Many high-cost credit businesses must post a security, such as a bond. The amount and format are set by regulation. The regulator can draw on the security to satisfy orders, penalties, or consumer claims. By applying, you accept that the security can be used for these purposes. You also agree to maintain it throughout the licence term. You must notify the regulator if the security is cancelled or reduced.

The application often requires sample documents. The regulator reviews your disclosure forms, agreements, and ads. They check that your cost of borrowing is clear. They check that the annual rate is disclosed correctly. They check for prohibited fees and misleading terms. Submission of samples is part of the legal review. If your documents do not comply, you will need to amend them. The licence may be delayed until you fix issues.

Finally, the form ties you to ongoing duties. You must keep records for a set period. You must display your licence at each location. You must show your licence number on your website and in ads. You must provide pre‑contract disclosures and give copies to consumers. You must honor cancellation rights and refund rules. You must follow limits on interest and fees. These duties attach to the licence and continue until it expires or is cancelled.

How to Fill Out a CONP11846 – Application for a High-Cost Credit Business Licence

Start by mapping your business model.

• List what products you will offer. Confirm whether you are a lender, a broker, or both. Note each Alberta location, including online operations. Decide who will be the authorized signing officer. Confirm who owns and controls the business. Gather the documents you will need. This preparation will save time and prevent back‑and‑forth questions.

Complete the applicant identification section first.

• Use your exact legal name as shown on your registration. If you are a corporation, use the corporate name, not a trade name. If you are a partnership, use the registered firm name. If you are a sole proprietor, list your legal name. Enter your Alberta registration or extra‑provincial registration number. If you are based outside Alberta, you must be registered to carry on business in Alberta before licensing.

Provide your business addresses.

• List your head office address and mailing address. Add the physical address of each Alberta location. For online businesses, list the address of the premises from which you operate. Include a direct contact person for the regulator. Give a phone number and email that you monitor. This is where licence notices will go. Make sure it is correct and kept up to date.

List your trade names.

• If you will market under a brand that differs from your legal name, include it. Many businesses use multiple brands. Each must be tied to your licence. You must also ensure each trade name is properly registered. The regulator will check. Incomplete trade name lists cause delays.

Describe your business activities.

• Indicate whether you will lend, broker, or both. Indicate if you will offer lease-to-own products. State whether you operate in-store, online, or both. Describe how you will solicit and accept applications. If you use affiliates or lead generators, disclose that. Clarify whether you make credit decisions or rely on third-party lenders. This helps the regulator place you in the right category.

Provide ownership and control details.

• List all directors and officers of a corporation. List all partners of a partnership. For each individual, provide full legal name, date of birth, home address, and role. Include percentage ownership where applicable. Identify any person or entity with significant control. This includes indirect owners through holding companies. Be precise. Ownership charts are helpful if the structure is layered.

Answer background questions truthfully.

• Expect questions about prior convictions, bankruptcies, judgments, or regulatory actions. Explain any “yes” answers in detail. Provide dates, jurisdictions, and outcomes. Attach supporting documents like discharge orders or settlement agreements. Transparency helps. The regulator can and will verify. A clear explanation can mitigate concerns. An omission will not.

Prepare and attach required security.

• Check the required format for your business type. This is often a surety bond or an irrevocable letter of credit. Obtain it from a qualified issuer. Make sure the beneficiary and wording meet the requirements. The bond must cover the entire licence term. Attach the original or the official electronic version, as instructed on the form.

Attach sample consumer documents.

• Include your pre‑contract disclosures, credit agreements, and payment schedules. Show how you calculate and disclose the annual cost of borrowing. Include fee schedules and any optional product disclosures. If you use electronic delivery, include screenshots or PDFs. If you will advertise, attach sample ads. The regulator will review the clarity and compliance of these materials.

Describe your compliance controls.

• Briefly outline your policies for underwriting, disclosures, and collections. Explain how you verify identity and prevent fraud. Confirm how you handle complaints and cancellations. Identify who oversees compliance and training. If you use third‑party service providers, name them and state their role. Strong controls support your suitability assessment.

Provide trust account or payment flow details if you hold consumer funds.

• Many brokers do not hold funds. If you do, the regulator will want details. List the financial institution, account type, and signing authorities. Explain reconciliation and segregation methods. If you do not hold funds, say so clearly.

Complete the consent and authorization section.

• Each listed individual must consent to background checks. They must sign or provide electronic consent as the form requires. Do not sign on behalf of others. If an individual is outside the country, arrange for notarized ID or alternative verification. Provide clear ID copies if the form allows or requests them.

Review the certification statement.

• The authorized signing officer must sign. For a corporation, this is usually a director or officer. For a partnership, it is a partner with signing authority. For a sole proprietor, it is the owner. If an agent prepares the form, attach a letter of authorization. Make sure the signature matches your corporate records.

Pay the application fee.

• The fee is per licence and may be per location. Use the payment method accepted for this form. Keep your receipt. If you withdraw or are refused, fees are often non‑refundable. Budget for the fee and the security costs.

Do a final completeness check.

• Confirm all required fields are complete. Verify addresses and contact details. Ensure all schedules and attachments are present. Cross‑check names across all documents for consistency. Mismatched names and numbers are the top cause of delay. Fix any gaps before you submit.

Submit the application as instructed on the form.

• Some applications are filed electronically. Others allow mail or in‑person submissions. Follow the instructions exactly. Note the date you submit and keep a full copy. Your internal file should include the form, all attachments, the bond, and your payment proof.

After submission, respond quickly to requests.

• The regulator may ask questions or seek extra documents. Assign one person to handle these requests. Keep your answers clear and backed by documents. Update your team on expected timelines and launch plans. Do not market or operate until your licence is issued.

Once approved, set up compliance reminders.

• Track your licence number and expiry date. Post the licence at each location. Add the licence number to your website and ads. Update disclosures to include the licence information where required. Train staff on the licence conditions. Build a calendar for renewals and security renewals. Review any conditions attached to your licence and embed them in procedures.

Plan for changes and renewals.

• If you add locations, file new applications early. If you change directors or owners, report within the required timelines. If your bond issuer changes, file the replacement right away. Keep your consumer documents under review. Law and guidance can change. Update your forms and ads before each renewal cycle.

Treat the application as the start of an ongoing regulatory relationship.

• Keep open lines with the regulator. Maintain clean records for the required retention period. Conduct internal audits. Handle complaints promptly and fairly. Your licence depends on ongoing suitability and compliance. A strong application supported by sound controls gives you a solid start.

Legal Terms You Might Encounter

• High-cost credit means a loan or credit agreement with a cost of borrowing above a set threshold. On this form, you confirm whether the products you offer fall within that category. If they do, you need this licence before you deal with consumers in the province.
• Cost of borrowing is the total price a consumer pays to get credit. It includes interest and most fees. When you describe your products on the form, be clear about every fee and charge that affects cost of borrowing.
• Annual percentage rate (APR) is the yearly rate of the cost of borrowing, expressed as a percentage. It helps consumers compare products. If the form asks for product terms, list the APR ranges that apply to your agreements.
• Principal is the amount the consumer actually borrows, not including fees and interest. If the form requests sample agreements or summaries, distinguish between principal and the cost of borrowing.
• Licence holder is the legal entity that receives the licence. This is the name that must appear on the form and on your licence. It must match your registered legal name exactly, not just your trade name.
• Trade name is the name you use in the marketplace that differs from your legal name. The form asks for all trade names you will use. List every name that appears on signage, websites, apps, marketing, and contracts.
• Control person is an individual or entity that has significant influence over the licence holder. This can be through ownership, voting rights, or the power to direct decisions. The form asks for details on these people. Be ready to disclose their names, addresses, roles, and history.
• Beneficial owner is a person who ultimately owns or controls the licence holder, even through other companies. When the form asks who owns you, include beneficial owners, not just the immediate parent company.
• Officer or director refers to people who manage and govern the licence holder. The form will request their information and background. That can include roles, tenure, and disclosure of past regulatory or criminal issues.
• Physical location means any storefront or office where you meet consumers or originate loans. Online operation means websites or apps where you offer credit. The form asks you to list all locations. Include every physical site and your online channels if you operate digitally.
• Record retention is your duty to keep certain records for a set time. The form may ask how you will store agreements, disclosures, receipts, and complaints. Outline your storage method and retention period in your compliance plan.
• Security or surety can refer to a bond, letter of credit, or other financial security some licence types require. If the form asks for proof of security, attach the document and name the issuer.
• Compliance officer is the person responsible for your compliance program. Some forms ask you to name a contact who will manage policies, training, and audits. Choose someone with authority and access to leadership.
• Material change means a significant change to your business that affects your licence details. Examples include new owners, new locations, or changes to your products. The form often warns you to report these changes within required timelines. Plan how you will track and report them.

FAQs

Do you need a separate licence for each location?

If each outlet originates high-cost credit agreements, you usually need to license each location under your business licence. The application asks for all locations where you carry on business. List each site separately, and confirm whether a location endorsement or separate licence number is required for each.

Do you need this licence for online lending?

Yes, if you offer high-cost credit to consumers in the province through a website or app. The application will ask about your digital presence. Provide your domain names or app names, and describe how consumers complete agreements online. Treat your online channel as a location for listing and compliance.

Do you need to license out-of-province operations?

You need a licence if you offer or arrange high-cost credit to consumers in the province, even from another province. The application focuses on the licence holder and operations that reach residents. Identify your head office and confirm you will comply with provincial rules when dealing with local consumers.

Do you have to post your licence?

You must display your licence at each physical location where consumers can see it. For online operations, you should post your licence details on your website or app. The licence number and business name on the display must match your approved licence.

Do you need to list all trade names?

Yes. You must disclose every trade name you will use to advertise or enter into agreements. If you launch a new trade name later, you must update your licence records. This prevents confusion and ensures consumers can identify your licensed business.

Do you need a background check?

The application asks for detailed background on owners, officers, directors, and control persons. You will disclose past bankruptcies, regulatory actions, or criminal matters. Be complete and accurate. Omitting information can delay approval or cause a refusal.

Can you transfer a licence to a new owner?

Licences are generally not transferable. A change of control or amalgamation can trigger new filings or approval before closing. If your ownership will change, contact the regulator before the transaction. The application requires you to declare current ownership. Do not assume the licence carries over.

How long does approval take?

Processing time varies based on completeness and risk factors. You can reduce delays by submitting all required documents, paying fees with the application, and responding quickly to follow-up requests. Build in lead time before your launch date.

Do you need to provide sample agreements and disclosures?

Often, yes. The application may request copies of your consumer agreements, disclosure statements, schedules of fees, and advertising samples. Provide current documents that match what you will use. This helps the regulator assess your compliance with disclosure rules.

What if you change locations or add a new one?

You must report location changes promptly and request approval if required. Do not start operating at a new site until your licence reflects the change. Update your posted licence and all consumer-facing materials after approval.

Checklist: Before, During, and After the CONP11846 – Application for a High-Cost Credit Business Licence

Before signing: Information and documents you need

• Legal name documents: articles, registrations, and any name change certificates.
• Trade name registrations for each name you use in the province.
• Organizational chart showing owners, control persons, and subsidiaries.
• Ownership details: percentage holdings, voting rights, and beneficial owners.
• IDs and contact information for officers, directors, and control persons.
• Background disclosures: bankruptcy, criminal, and regulatory history for key people.
• Physical addresses for each location; include unit numbers and postal codes.
• Online channel details: domains, apps, and where agreements are executed.
• Sample consumer agreements and disclosure statements.
• Fee schedules, interest calculation methods, and cost of borrowing summaries.
• Complaint handling policy and contact information for consumers.
• Record retention policy, including storage methods and retention periods.
• Compliance policies: advertising, underwriting, collections, and privacy.
• Training plan for staff who interact with consumers.
• Financial statements or proof of financial capacity, if requested.
• Evidence of security or surety, if the licence type requires it.
• Proof of insurance coverage, if the application calls for it.
• Consent forms from owners and directors for background checks.
• Application fee payment method and account authorization.

During signing: Sections to verify

• Legal name and business structure match your registration records exactly.
• All trade names are listed, spelled correctly, and match registrations.
• Every physical location is included, with accurate contact details and hours.
• Online operations are described and match your consumer journey.
• Owners, officers, directors, and control persons are complete and current.
• Background disclosures are answered fully, with explanations where needed.
• Product descriptions align with your actual high-cost credit offerings.
• Fee and APR descriptions match your agreements and disclosures.
• Security or surety details are accurate and supported by attachments.
• Policies attached are current versions and match what you will implement.
• The compliance officer contact is correct and has authority to act.
• Declarations and attestations are read and understood by the signer.
• The signing officer has authority and signs in the correct capacity.
• All required attachments are included and labeled clearly.
• The fee payment details are correct and authorized.

After signing: Filing, notifying, and storing

• Submit the complete application with all attachments and the fee.
• Save proof of submission and payment confirmation.
• Log the expected processing timeline and set reminders to follow up.
• Respond quickly to any requests for more information.
• Prepare for an inspection or interview, if the regulator requests one.
• Once approved, display the licence at each location and online.
• Update internal documents and consumer-facing materials with your licence number.
• Train staff on licence boundaries, disclosures, and complaint handling.
• Set calendar reminders for renewal and required reports.
• Create a change-notice process to report ownership, location, or product changes.
• Store the approved application and licence in your records retention system.
• Review and test your compliance controls before launching operations.

Common Mistakes to Avoid in CONP11846 – Application for a High-Cost Credit Business Licence

Leaving out a trade name.

• Don’t forget to list every name you will use. Missing a trade name can lead to misleading advertising findings. It can also cause enforcement action if you contract under an unlisted name.

Underreporting owners or control persons

• Don’t omit indirect or beneficial owners. If the regulator later discovers hidden control, you risk refusal, suspension, or fines. Full disclosure reduces follow-up questions.

Describing products vaguely

• Don’t rely on general phrases. If your fee or interest calculations are unclear, your application may stall. Provide simple examples that match your contracts.

Using outdated sample agreements

• Don’t attach old templates. If your samples lack current disclosures, approval can be delayed. Update documents before you apply.

Incorrect or incomplete location information

• Don’t list “TBD” or partial addresses. Missing suite numbers or wrong postal codes create service issues. You may have to refile location details.

Missing signatures or signing without authority

• Don’t let an unauthorized person sign. If the declaration is invalid, your filing is incomplete. Confirm signing authority and title before you submit.

What to Do After Filling Out CONP11846 – Application for a High-Cost Credit Business Licence

1. Submit the application in the approved way. Use the regulator’s portal or the mailing method noted on the form. Include the full fee. Keep a copy of everything you send.
2. Track your application. Note the date of submission and any reference number. Set a weekly reminder to check status. Save all messages and requests from the regulator.
3. Prepare to answer questions. Assign one person to handle follow-up requests. Have owners and directors on standby to provide extra documents or explanations.
4. Get your operations compliance-ready. Before approval, finalize your agreements, disclosures, and training. Confirm your systems can show APR, total cost of borrowing, fees, and payment schedules. Test your workflows for online and in-person origination.
5. Plan your licence display. Once approved, post the licence at every physical site where consumers are served. Update your website or app with your licence details. Check that trade names on signage match your licence records.
6. Launch with controls in place. Train staff on affordability checks, disclosures, cancellations, and complaints. Use scripts and checklists to keep conversations consistent and accurate. Monitor calls and chats for compliance.
7. Set your renewal calendar. Add reminders for renewal well ahead of the due date. Gather updated ownership details, locations, and financial documents for renewal.
8. Report changes promptly. If you add a location, change a trade name, or shift ownership, file the required change notice or amendment. Wait for approval before using new locations or names in the market.
9. Maintain records. Store executed agreements, disclosures, payment histories, and complaint files for the required period. Keep records secure and easy to retrieve during an inspection.
10. Audit your marketing. Review ads, websites, and in‑app messages for clear, accurate costs and terms. Remove claims that could mislead consumers. Align all channels with your fee schedules and agreements.
11. Test your collections practices. Ensure letters, emails, and calls follow rules on contact times, tone, and content. Keep logs of contacts and outcomes. Train staff on hardship and dispute escalation.
12. Monitor third parties. If you use brokers, lead generators, or servicing partners, vet them. Ensure they follow your policies and keep records. Include rights to audit and terminate for non‑compliance.
13. Plan for complaints. Confirm your complaint process is visible and easy to use. Track every complaint to closure. Analyze trends and fix root causes.
14. Prepare for inspections. Keep your compliance manual, training records, and sample files ready. Assign a point person to meet inspectors and produce documents quickly.
15. Know how to close or transfer. If you plan to cease operations or sell the business, start early. File the right notices. Arrange for records retention and consumer notifications. Ensure consumers can access statements and payoff details after the change.
16. Handle denials or conditions. If approval is denied or conditioned, review the reasons. You can correct gaps, submit more information, or adjust your operations. Keep a record of changes for any resubmission.
17. Keep leadership engaged. Provide regular compliance reports to owners and directors. Include key metrics, complaints, and audit results. Show how you are meeting licence obligations.
18. Update policies as laws change. Assign a reviewer to track rule changes. Update agreements, disclosures, and training as needed. Document the date and reason for each change.
19. Integrate compliance into performance. Tie staff goals to accuracy, disclosure quality, and consumer outcomes. Recognize good compliance behaviour and coach where needed.
20. Align tech and compliance. Work with developers so systems calculate APR and fees correctly. Lock critical disclosures so they can’t be edited without approval. Keep version control on templates.