Instalment credit firms and authorisation

Consumer credit firms offering only instalment credit agreements may be exempt from our authorisation. Find out the details here. 

Your instalment credit agreement is exempt from our authorisation if it meets all of the following criteria.

Must Must not
  • be repayable by no more than 12 instalments within no more than 12 months
  • be a borrower-lender-supplier agreement (that’s to say, it must finance the acquisition of specific goods or services)
  • be for a fixed amount
  • be an agreement financing the buying of land
  • be a conditional sale or HP agreement
  • be a pawn agreement
  • contain charges or interest (for example, there can’t be an admin fee)

If you offer any additional financial services or arrangements that qualify as regulated activities, then you will need to be authorised by us.

It’s your responsibility to figure out whether your instalment credit agreement is exempt from our authorisation. If necessary, seek independent legal advice.