AUTHORISATION REQUIREMENTS EXTENDED TO HIRE-PURCHASE & OTHER TYPES OF CREDIT

Authorisation from the Central Bank of Ireland is now required in relation to a broader scope of credit which also includes hire-purchase and consumer-hire business.

A new cap of 23% APR has been imposed on consumer credit agreements and consumer hire-purchase agreements. The authorisation requirements apply in relation to a regulated business, which includes the business of a retail credit firm or the business of a credit servicing firm.

Under the new Act, the definition of “credit servicing”, has been expanded to require an authorisation where a firm engages in the following activities in respect of consumer-hire and hire-purchase agreements:

• the holding of legal title to the rights of the owner under the agreement
  
• the management or administration of the agreement, or
  
• communicating with the hirer in respect of the management or administration of the agreement

​In addition, the 2022 Act amends the 1995 Act such that it applies to a person who has invited, by way of advertisement, consumers to avail of credit without payment of interest or any other charge.