Amendment of the Consumer Credit (Agreements) Regulations 19833

1

Regulation 1(2) (interpretation) shall be amended as follows.

2

Insert at the appropriate place—

  • “contract of shortfall insurance” means anything in writing which contains or purports to contain some promise or assurance (however worded or presented) that if a sum payable under a contract of insurance against loss of or damage to goods is less than the amount necessary to defray—

    1. a

      any amount of credit provided to finance the purchase of those goods; and

    2. b

      any other amount included in the total charge for that credit,

    to the extent that these remain unpaid at the date of the loss or damage, a sum up to but not exceeding that shortfall will be paid.”

3

In the definition of “total charge for credit” after the words “Total Charge for Credit Regulations” insert “and Schedule 7 to these Regulations”.