The Consumer Credit (Agreements) Regulations 1983

Modifying agreements which are, or are treated as, regulated agreements

7.—(1) The provisions of these Regulations shall apply to modifying agreements which vary or supplement earlier credit agreements or earlier hire agreements and which are, or are treated under section 82(3) of the Act as, regulated agreements, subject as hereinafter mentioned.

(2) Subject to paragraphs (3) and (12) below, documents embodying modifying agreements varying or supplementing earlier credit agreements shall contain the information set out in Column 2 of Part I of Schedule 8 to these Regulations in so far as it relates to the type of modifying agreement referred to in Column 1.

(3) Where any information about financial and related particulars set out in paragraphs 8 to 10 of Part I of Schedule 8 to these Regulations cannot be exactly ascertained by the creditor, estimated information based on such assumptions as the creditor may reasonably make in all the circumstances of the case and an indication of the assumptions made shall be included in documents embodying modifying agreements varying or supplementing earlier credit agreements.

(4) Subject to paragraph (5) below, the information about financial and related particulars set out in paragraphs 3 to 19 of Part I of Schedule 8 to these Regulations shall be shown together as a whole in documents embodying modifying agreements varying or supplementing earlier credit agreements in relation to the credit to be provided under the modified agreement and not interspersed with other information apart from subtotals of total amounts and cross-references to terms of the modifying agreement.

(5) In the case of documents embodying modifying agreements varying or supplementing earlier restricted-use debtor-creditor-supplier agreements for fixed-sum credit which were to finance a transaction comprising the acquisition of goods, services, land or other things specified in the earlier agreement or identified and agreed on at the time the earlier agreement was made and relating to more than one description of goods, services, land or other things, the cash prices, and the total cash price, referred to in paragraph 3 of Part I of Schedule 8 to these Regulations may be shown in a schedule to such document together with each description of the goods, services, land or other things, provided that the total cash price and a reference to the schedule to such document are shown together with the remaining financial and related particulars specified in paragraphs 4 to 19 of Part I of Schedule 8.

(6) The APR referred to in paragraphs 14 to 17 of Part I of Schedule 8 to these Regulations shall in documents embodying modifying agreements varying or supplementing earlier credit agreements—

(a) be denoted as “APR” or “annual percentage rate” or “annual percentage rate of the total charge for credit”; and

(b) be afforded no less prominence than any of the other financial and related particulars referred to in paragraphs 3 to 19 of Part I of Schedule 8 and the statements specified in Forms 5 to 10 of Part I of Schedule 2.

(7) For the purposes of Part I of Schedule 8 to these Regulations, in calculating—

(a) the amount of repayments or of any capital outstanding under an earlier agreement;

(b) the total charge for credit (or any items included in it) in relation to the credit to be provided under the modified agreement; or

(c) the APR in relation to the modified agreement,

the relevant date shall be determined by reference to the date of the modifying agreement.

(8) For the purposes of Part I of Schedule 8 to these Regulations, the total cash price under the modified agreement shall be taken to be the total of—

(a) the total amount of the capital outstanding under the earlier agreement on the relevant date within the meaning of paragraph 5 of Part I of Schedule 8; and

(b) the cash price in relation to each list or other description of any additional goods, services, land or other things the acquisition of which is to be financed by credit under the modifying agreement.

(9) Subject to paragraphs (10), (12) and (15) below, documents embodying modifying agreements varying or supplementing earlier hire agreements shall contain the information set out in Column 2 of Part II of Schedule 8 to these Regulations in so far as it relates to the type of modifying agreement referred to in Column 1.

(10) Where any information about financial and related particulars set out in paragraphs 5 and 6 of Part II of Schedule 8 to these Regulations cannot be exactly ascertained by the owner, estimated information based on such assumptions as the owner may reasonably make in all the circumstances of the case and an indication of the assumptions made shall be included in documents embodying modifying agreements varying or supplementing earlier hire agreements.

(11) The information about financial and related particulars set out in paragraphs 3 to 8 of Part II of Schedule 8 to these Regulations shall be shown together as a whole in documents embodying modifying agreements varying or supplementing earlier hire agreements in relation to the goods to be bailed or hired under the modified agreement and not interspersed with other information apart from subtotals of total amounts and cross-references to terms of the modifying agreement.

(12) Where any information about financial and related particulars set out in paragraphs 3 to 19 of Schedule 1 to these Regulations and paragraphs 3 to 8 of Schedule 3 is contained in any document embodying an earlier agreement, nothing in the preceding provisions of this Regulation shall require the information to be contained in any document embodying a modifying agreement varying or supplementing an earlier agreement except as mentioned in Schedule 8 if the information is not varied or supplemented by the modifying agreement and the document contains a statement to this effect.

(13) Documents embodying modifying agreements shall identify clearly the terms and financial and related particulars of earlier agreements varied or supplemented by modifying agreements.

(14) In the application of Regulation 6(1) above and Schedule 6 to these Regulations to modifying agreements, which are, or are treated under section 82(3) of the Act as, regulated agreements—

(a) for any reference to the type of agreement referred to in Column 1 of Schedule 6 there shall be substituted a reference to modifying agreements which vary or supplement the type of agreement referred to in Column 1 of Schedule 6;

(b) any reference in Column 2 of Schedule 6 to an agreement, or a term, shall be a reference to a modified agreement, or a term of a modified agreement, as the case may be; and

(c) any term referred to in Column 2 of Schedule 6 in relation to the type of modifying agreement referred to in sub-paragraph (a) above shall not be a prescribed term for the purposes of sections 61(1)(a) and 127(3) of the Act, if the term was a term of the earlier agreement and has not been varied or supplemented by the modifying agreement.

(15) Where a modifying agreement varies or supplements an earlier hire agreement and the modified agreement is, or is treated as, a restricted-use debtor-creditor-supplier agreement, the provisions of this Regulation shall apply to any document embodying the modifying agreement as though it varied or supplemented an earlier restricted-use debtor-creditor-supplier agreement, except that its heading shall be “Agreement modifying a Hire Agreement and regulated by the Consumer Credit Act 1974”.