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—
- a
any amount of credit provided to finance the purchase of those goods; and
- 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”.