It is often used to buy household appliances, furniture and cars. The money to pay for the goods is provided by the shop or by a finance company. You can take the goods home straight away but you don't own them until you've made the last payment. Sometimes shops offer interest-free hire purchase where you pay only the cash price in installments. Hire purchase sales must comply with the Hire Purchase Act 1971.
Any person can choose to buy on hire purchase.
But some retailers will not enter into a hire purchase deals where the buyer's credit history shows to the retailer that they are a poor credit risk. Buyers who present a risk to the finance company may require a co-borrower or a guarantor before credit approval is given. Retailers and finance companies must comply with the Human Rights Act. This means that they cannot deny credit only on the basis of gender, marital status, race,colour, religious or ethical belief, national or ethnic origins,disability, political opinion, employment status, family status, sexual orientation, or age. Finance companies Shops often have an arrangement with a finance company to provide the hire purchase finance.