I received an email/letter telling my agreement/loan is high cost credit. What does this mean?
Answer: The Consumer Credit Act 1995 was recently amended and firms who were formerly regulated as Moneylenders are now regulated as High Cost Credit providers.
Premium Credit are currently regulated as a Moneylender but this will change on the 14th of November when we will be known as a High Cost Credit provider.
The titles of our credit agreements must change from Moneylending Agreements to High Cost Credit Agreements. It is only the name of the Agreement that is changing. The terms of your agreement with us are staying the same.
Do I need to do anything?
Answer: No, you do not need to take any action. The communication was sent to let you know that the title of your credit agreement is changing.
I didn’t know that the credit I received from you was going to be high cost credit. I wouldn’t have taken the loan if I had known.
Answer: Even though your credit agreement will be called a high cost credit agreement from the 14th of November, your loan us does not meet the definition of high cost credit as the APR on your agreement is much lower than the high cost threshold which is currently 23%.
We can understand why the description “high cost” might be a cause of concern to you but we want to reassure you that you continue to enjoy the rate of APR agreed and the only change is the name of the agreement.
Will I still be able to get a loan from you when I need to renew my insurance?
Answer: Yes, you will. Our renewal process is unchanged. If you choose to renew your agreement with us, your broker will let us know and we will send you a Notice of Variation which will show the change of title on your agreement.
What regulatory authority oversees my agreement/Who are you regulated by?
Answer: We are regulated by the Central Bank of Ireland and your credit agreement is regulated by the Consumer Credit Act 1995.