Consumer credit contract (hire purchase)

A consumer credit contract (hire purchase) is where a client enters into a contract to purchase personal, domestic or household items, including any agreement where:

• interest charges may be payable under the contract or
• credit fees may be payable under the contract or
• security may be required under the contract and
• the creditor is in the business of providing credit

A client who has used a consumer credit contract to purchase an essential item that is an allowable cost can have this item included in their assessment for Temporary Additional Support.

The client must purchase the item from a supplier and establish a credit contract through that supplier. The credit contract does not have to be with the supplier but the supplier must introduce the client to the creditor.

For example, a client would like to establish a consumer credit contract with a supplier to purchase a washing machine. The supplier then asks the client to complete a credit application form for a finance company.

For more information see:

• Allowable costs
• Agreed period payments
• Revolving credit payments
• Hire or rental essential household items