Providers and servicers of PCP, consumer hire and indirect credit, also known as buy now pay later, now need to be authorised by the Central Bank.

It follows the extension of the existing regulatory regimes following the commencement of the Consumer Protection (Regulation of Retail Credit and Credit Servicing Firms) Act 2022 by the Minister for Finance.

The development means consumers using these services are now protected by the Central Bank's consumer protection framework.

This includes provisions of the Consumer Protection Code 2012, the Minimum Competency Code 2017, and the Minimum Competency Regulations 2017.

"Extending our consumer protection framework to these firms will ensure that Irish consumers receive the same protections that we require of other financial service providers," said Gerry Cross, Director of Financial Regulation - Policy and Risk at the Central Bank.

"Our aim is to ensure that consumers have the same level of protection no matter where they source their financial services."

The legislation also introduces an interest rate cap of 23% APR on all credit agreements provided to consumers.

The only exclusion is money lending agreements which have a separate regulatory framework.