Bill to bring providers of PCPs under remit of the Central Bank
Legislation to bring providers of hire purchase and personal contract plans (PCPs) under the remit of the Central Bank has been published.
The Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Bill 2021 will implement the key recommendations of the Tutty Report to extend the relevant provisions of the Central Bank’s Consumer Protection Code to all the providers of hire purchase/PCP agreements to consumers.
The bill will require all such providers to be regulated by the Central Bank and oblige firms to assess the suitability of the products offered to its consumers.
It will also require an evaluation of the ability of the borrower to repay the debt over the duration of the credit agreement.
Additionally, the bill will extend the existing interest rate cap on credit and hire purchase agreements to all entities that fall within the scope of the Consumer Credit Act.
Welcoming government approval for the bill, Finance Minister Paschal Donohoe said: “This bill will bring all providers of hire purchase and personal contract plans under the remit of the Central Bank and its Consumer Protection Code.
“This will significantly improve the level of protection available to the consumers of such agreements. The bill will now proceed through the Oireachtas with the intention of being enacted later this year.”