Hire-Purchase, Consumer Hire, PCP And Buy-Now-Pay-Later: New Authorisation Framework

Providers of hire purchase products (including personal contract plans) or consumer-hire products to consumers, and servicers of those products, now need to be authorised by the Central Bank of Ireland. These changes also impact 'buy-now-pay-later' providers and products. This briefing looks at the new requirements, and highlights a related change to the interest-free credit exemption under the Consumer Credit Act 1995.

On 11 April 2022, the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 was signed into law. The new Act will require a commencement order before it becomes operational.

Overview

The new Act extends the retail credit and credit servicing regimes under the Central Bank Act 1997 by requiring that any person carrying on a business of offering hire purchase products (including personal contract plans (PCPs)) or consumer-hire products to consumers, and any other person providing credit directly or indirectly to