The Consumer Credit (Agreements) (Amendment) Regulations 2004

Amendment of the Consumer Credit (Agreements) Regulations 1983

10.—(1) Schedule 1 (information to be contained in documents embodying regulated consumer credit agreements other than modifying agreements) shall be amended as follows.

(2) For paragraph 1 substitute—

“1.

All types.

(1) Subject to paragraph (2) below, a heading in one of the following forms of words— (a) “Hire-Purchase Agreement regulated by the Consumer Credit Act 1974”; (b) “Conditional Sale Agreement regulated by the Consumer Credit Act 1974”; (c) “Fixed-Sum Loan Agreement regulated by the Consumer Credit Act 1974”; or (d) “Credit Card Agreement regulated by the Consumer Credit Act 1974”, as the case may require. (2) If none of the headings in 1(a) to (d) above are applicable a heading in the following form of words—“Credit Agreement regulated by the Consumer Credit Act 1974”. (3) Where the document and a pawn-receipt are combined, the words “, and Pawn Receipt,” shall be inserted in the heading after the word “Agreement”. (4) Where the document embodies an agreement of which at least one part is a credit agreement not regulated by the Act, the word “partly” shall be inserted before “regulated” unless the regulated and unregulated parts of the agreement are clearly separate. (5) Where the credit is being secured on land the words “secured on” followed by the address of the land shall be inserted at the end of the heading.”.

(3) After paragraph 8 insert—

“Term of the agreement
8A.	Agreements of fixed duration for running-account credit .	The duration of the agreement.
8B.	Agreements for fixed-sum credit.	The duration or minimum duration of the agreement.”.

(4) For paragraph 9 substitute—

“9.

Agreements for fixed-sum credit except agreements— (a) which do not specify either the intervals between repayments or the amounts of repayments or both the intervals and the amounts; (b) under which the total amount payable by the debtor to discharge his indebtedness in respect of the amount of credit provided may vary according to any formula specified in the agreement having effect by reference to movements in the level of any index or to any other factor; (c) which provide for a variation of, or permit the creditor to vary, (whether or not by reference to any index) the amount or rate of any item included in the total charge for credit after the relevant date; or (d) under which the total amount payable by the debtor is not greater than the total cash price referred to in paragraph 4.

(1) The total charge for credit, with a list of its constituent parts. (2) The rate of interest on the credit to be provided under the agreement or, where more than one such rate applies, all the rates in all cases quoted on a per annum basis with details of when each rate applies. (3) A statement explaining how and when interest charges are calculated and applied under the agreement.”.

(5) For paragraph 10 substitute—

“10.

Agreements for— (a) running-account credit; and (b) fixed-sum credit falling within the exceptions in paragraph 9(a) to (c).

(1) The total charge for credit with a list of its constituent parts and in the case of running-account credit, the total charge for credit shall be calculated on the same assumptions as are set outin paragraph 1 of Schedule 7 for the purpose of calculating the APR in place of the assumptions in Part 4 of the Total Charge for Credit Regulations that might otherwise apply. (2) The rate of interest on the credit to be provided under the agreement or, where more than one such rate applies, all the rates in all cases quoted on a per annum basis with details of when each rate applies. (3) A statement whether any interest rate to be shown under (2) above is fixed or variable. (4) A statement explaining how and when interest charges are calculated and applied under the agreement.”.

(6) After paragraph 14 insert—

“14A.

All types where different interest rates or different charges or both are or will be at any time during the term of the agreement payable in respect of— (a) credit provided under the agreement for different purposes; or (b) under each of the different parts of the agreement, whether or not the agreement is a multiple agreement.

A statement of the order or proportions in which any amount paid by the debtor which is not sufficient to discharge the total debt then due under the agreement will be applied or appropriated by the creditor towards the discharge of the sums due— (a) in respect of the amounts of credit provided for different purposes, or (b) different parts of the agreement, as the case may be.”.

(7) For paragraph 22 substitute—

“Charges
22.	All types.	(1) A list of any charges payable under the agreement to the creditor upon failure by the debtor or a relative of his to do or refrain from doing anything which he is required to do or refrain from doing, as the case may be. (2) A statement indicating any term of the agreement which provides for charges— (a) not required to be shown under (1) above; or (b) not included in the total charge for credit.”

(8) After paragraph 22 insert—

“Cancellation rights
23.	Agreements which are not cancellable agreements.	A statement that the agreement is not cancellable.
Amount payable on early settlement
24.	Agreements for fixed-sum credit for a term of more than one month.	(1) Examples based on the amount of credit to be provided under the agreement or the nominal amount of either £1000 or £100, showing the amount that would be payable if the debtor exercised the right under section 94 of the Act to discharge his indebtedness on the date when— (a) a quarter of the term of the agreement elapses; (b) half of the term elapses; and (c) three quarters of the term elapses. or on the first repayment date after each of those dates. (2) A statement explaining that, in calculating the amounts shown, no account has been taken of any variation which might occur under the agreement, and that the amounts are accordingly only illustrative.”.