Cycle to work scheme
Discussion
Seems the info was wrong:
In this email to you, supported by advice from the FCA, a financial regulatory body, we said hire agreements as part of the Cycle to Work scheme were no longer required to be regulated under the new Instalment Exemption criteria.
The FCA have now updated their position to us, and their view is that a difference exists between Consumer Credit Agreements (to which the exemption applies) and Consumer Hire Agreements (to which the exemption does not apply).
In the meantime, this means that we will revert back to our original position:
All hire agreements as part of a Cycle to Work Scheme will remain regulated, and certificate spend for your customers will be limited to a maximum of £1000 (unless employers obtain their own Consumer Credit Licence).
The FCA have acknowledged the need to provide clearer advice on this distinction and they will action this in the near future.
In this email to you, supported by advice from the FCA, a financial regulatory body, we said hire agreements as part of the Cycle to Work scheme were no longer required to be regulated under the new Instalment Exemption criteria.
The FCA have now updated their position to us, and their view is that a difference exists between Consumer Credit Agreements (to which the exemption applies) and Consumer Hire Agreements (to which the exemption does not apply).
In the meantime, this means that we will revert back to our original position:
All hire agreements as part of a Cycle to Work Scheme will remain regulated, and certificate spend for your customers will be limited to a maximum of £1000 (unless employers obtain their own Consumer Credit Licence).
The FCA have acknowledged the need to provide clearer advice on this distinction and they will action this in the near future.
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