The Consumer Credit (EU Directive) Regulations 2010

Consumer Credit (Exempt Agreements) Order 1989

66.  In article 3 (exemption of certain consumer credit agreements by reference to the number of payments to be made by the debtor)—

(a) for paragraph (1)(a)(i) substitute—

“(i) an agreement for fixed-sum credit under which—

(aa) the total number of payments to be made by the debtor does not exceed four;

(bb) those payments are required to be made within a period not exceeding 12 months beginning with the date of the agreement; and

(cc) the credit is provided without interest and without any other charges;

or”;

(b) for paragraph (1)(a)(ii) substitute—

“(ii) an agreement for running-account credit—

(aa) which provides for the making of payments by the debtor in relation to specified periods not exceeding 3 months;

(bb) which requires that the number of payments to be made by the debtor in repayment of the whole amount of the credit provided in each such period shall not exceed one; and

(cc) in relation to which no or insignificant charges are payable for the credit;”;

(c) for paragraph (1)(b) substitute—

“(b) a debtor-creditor-supplier agreement financing the purchase of land under which—

(i) number of payments to be made by the debtor does not exceed four; and

(ii) the credit is provided without interest and without any other charges;

and in this sub-paragraph, “payment” means a payment comprising or including an amount in respect of credit.”;

(d) in paragraph (1)(c) for paragraph (iii) substitute—

“(iii) the credit is provided without interest and without any other charges;”;

(e) in paragraph (1)(d) for paragraph (iii) substitute—

“(iii) the credit is provided without interest and without any other charges;”.

(f) after paragraph (1) insert—

“(1A) In relation to a consumer credit agreement secured on land—

(a) paragraph (1)(a)(i) shall apply as if sub-paragraph (cc) were omitted

(b) paragraph (1) (a)(ii) shall apply as if—

(i) in sub-paragraph (aa) the words “not exceeding 3 months” were omitted; and

(ii) sub-paragraph (cc) were omitted;

(c) paragraph (1)(b) shall apply as if sub-paragraph (ii) were omitted;

(d) paragraph (1)(c)(iii) shall apply as if for the words “the credit is” to the end there were substituted—

“there is no charge forming part of the total charge for credit under the agreement other than interest at a rate not exceeding the rate of interest from time to time payable under the agreement mentioned in subparagraph (i);”;

(e) paragraph (1)(d)(iii) shall apply as if for the words “the credit is” to the end there were substituted—

there is no charge forming part of the total charge for credit under the agreement other than interest at a rate not exceeding the rate of interest from time to time payable under the agreement referred to in sub-paragraph (i);”.