NGCAA National Secretary  Michael Shaw

THE NATIONAL Golf Clubs’ Advisory Association (NGCAA) is calling for clarity about the rules for golf club and other sporting clubs’ subscription charges.

Many golf clubs allow membership fees to be paid in instalments under an in-house scheme and no interest or administrative charge is made. Because a private members golf club is non profit making, a Consumer Credit License has never thought to have been needed.

However, Trading Standards now suggest that golf and other sporting clubs may need a license, particularly where annual subscriptions are paid in more than four instalments.

Michael Shaw, National Secretary of the NGCAA says confusion is rife and asks if this is another case of legislation not being thought through or a cynical attempt for a Government department to swell its coffers:

“Clubs allow members to pay in instalments so they don’t have to stump up all the cash upfront.  It’s always been felt that clubs didn’t need a Consumer Credit License but recently there has been some confusion and the issue has not yet been clarified. 

“Local Trading Standards Officers are getting advice from the Department of Trade and Industry on the issue and when a decision is made we will advise our members.

“If it is decided that a license is needed, the implications will be far reaching.  If a licence fee is taken from every club who offers payments of subscriptions by instalments, then the Government’s coffers will be considerably swelled.

“How ridiculous it will be if, say, an amateur football club whose members pay a fiver every time they meet in the local pub to facilitate renting a pitch and buying their strip are required to be licensed.”

The Consumer Credit Act 1974 regulates consumer credit and hire agreements for amounts up to £25,000.  The Act requires all traders who make regulated agreements to obtain licenses from the Office of Fair Trading.

For more information please visit www.ngcaa.org.uk or telephone 01684 311353

The NGCAA is an independent , non-profit making association of golf clubs providing legal and administrative advice to member golf clubs under the guidance of Standing Counsel.

The NGCAA is an independent, non-profit making association of golf clubs providing legal and administrative advice to member golf clubs under the guidance of Standing Counsel.