Consumer credit agreement (up to four payments)

[connersz]

A fellow businessman recently told me that you can create a customer credit agreement, up to four payments to help spread the cost and by having a maximum of four payments, this means you don't need the normal licensing etc.

The trouble is, I have been struggling to find any information for this online, anywhere. I'm interested in introducing something myself. I understand there's a risk of not being able to take the other payments but I would like to see for myself, the regulations and hopefully a sample agreement so I can get an idea of what I need to include or do for this.

Hope you can help.

 

[@aiteoconsulting]

This is what you're looking for. You can spread payments over 12 instalments for up to 12 months, subject to certain conditions which are explained in the link.

https://www.fca.org.uk/firms/authorisation/consumer-credit/exemptions/instalment-agreements

 

[connersz]

This is what you're looking for. You can spread payments over 12 instalments for up to 12 months, subject to certain conditions which are explained in the link.

https://www.fca.org.uk/firms/authorisation/consumer-credit/exemptions/instalment-agreements

That's great thanks for that. I wonder where the whole "four payments max" thing came from.

Do you know if there is somewhere I can get a sample agreement for this kind of thing or what I should include?

 

[connersz]

Also, does that link apply when it's credit card transactions or is it direct debit? I guess there's quite a bit of missing information.

 

[@aiteoconsulting]

For legal questions, try this service - free trial then £25 / month. I'm not connected to it in any way, nor have I used it, but it looks like it could help you.

https://www.rocketlawyer.co.uk/

 

[connersz]

For legal questions, try this service - free trial then £25 / month. I'm not connected to it in any way, nor have I used it, but it looks like it could help you.

https://www.rocketlawyer.co.uk/

Thanks for the link. I had a look and it doesn't have any documents for what I need, it has something for a proper loan agreement and debt collection but not this more casual way of lending. In addition to the £25 a month, if you need a lawyer you only get a 33% discount.

The above may provide an option but I feel like there should be some more information on this subject, somewhere out there.