Hire Purchase and Credit Sales |04 November 2022

The Financial Services Authority (FSA) is responsible for the licensing and regulating of the Hire Purchase and Credit Sales in the Seychelles, which is governed by the Hire Purchase & Credit Sales Act, 2013. Following the enactment of the said Act, two further regulations were enacted which are the Hire Purchase and Credit Sale (Fees) Regulations, 2018 and the Hire Purchase and Credit Sale (Charges) Regulations, 2018.

What is Hire Purchase and Credit Sales?

Hire Purchase is defined as an agreement for the sale of goods under which the property, although taken home, the ownership only passes to the hirer upon payment by installments of the whole amount due within the maximum repayment period of 48 months.

Whereas Credit Sales is defined as an agreement for the sale of goods on credit under which the ownership of the goods passes to the buyer at the time the credit sales agreement is entered into or upon delivery of the goods.

Both agreements allow goods to be paid by monthly installments and the maximum annual percentage rate prescribed by the minister under the Regulations is 22.50%.

A person may also enter into an ancillary agreement, which means an option is given by the dealer to the hirer in a hire purchase agreement or to the buyer in a credit sales agreement, to purchase other goods, which are ancillary to the goods specified in the First Schedule and includes a credit protection plan or an extended warranty.

The list of goods, which one can purchase on Hire Purchase or Credit Sales, is listed in the first schedule of the same Act and the list is subject to change.

Companies that are offering Hire Purchase and Credit Sales to their customers without a license by the FSA are committing an offence and are liable to conviction or a fine of R40,000 and a further fine of R20,000 will be applicable for every day on which the contravention continues. Therefore, it is advisable that companies currently offering goods on Hire Purchase or Credit Sales to enquire with the FSA on how to apply for a license on the following addresses;

By Post: Director of International Trade Zone and Hire Purchase and Credit Sales

 Financial Services Authority

 P.O. Box 991

 Bois De Rose Avenue, Mahé

 Republic of Seychelles

By Email: ITZsection@fsaseychelles.sc

Tel: +248 4380800 

Fax: +2484380888

Should you wish to have a face-to-face meeting, we encourage the public to call and book an appointment.

Please be advised that we are located at the Sunshine Commercial Building, Providence, Mahé, Seychelles (Next to PMC Auto Hyundai Showroom).

Contributed