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:
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.