Amendment of the Consumer Credit (Agreements) Regulations 1983

3.—(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”.