Default under regulated agreements

13Interest on default sums

After section 86E of the 1974 Act (inserted by section 12 of this Act) insert—

86FInterest on default sums

1

This section applies where a default sum becomes payable under a regulated agreement by the debtor or hirer.

2

The debtor or hirer shall only be liable to pay interest in connection with the default sum if the interest is simple interest.