The Consumer Credit (Agreements) Regulations 2010

Regulation 1(2)

SCHEDULE 4 PROVISIONS RELATING TO CALCULATION AND DISCLOSURE OF THE TOTAL CHARGE FOR CREDIT AND APR

1.    Assumptions about running-account credit

(a) In the case of an agreement for running-account credit, the assumption in paragraph (b) below shall have effect for the purpose of calculating the total charge for credit and any APR in place of the assumption in regulation 6(o) of the Consumer Credit (Total Charge for Credit) Regulations 2010(1) that might otherwise apply.

(b) In a case where credit is to be provided subject to a maximum credit limit of less than £1,200, the credit limit shall be assumed to be an amount equal to that maximum limit.

2.    Permissible tolerances in disclosure of an APR

For the purposes of these Regulations, it shall be sufficient compliance with the requirement to show an APR if there is included in the consumer credit agreement—

(a) a rate which exceeds the APR by not more than one, or

(b) a rate which falls short of the APR by not more than 0.1, or

(c) in a case to which either of paragraphs 3 or 4 of this Schedule applies, a rate determined in accordance with those paragraphs or whichever of them applies to that case.

3.    Tolerance where repayments are nearly equal

In the case of an agreement under which all repayments of credit but one are equal and that one repayment does not differ from any other repayment by more whole pence than there are repayments of credit, there may be included in a consumer credit agreement a rate found under regulation 5 of the Consumer Credit (Total Charge for Credit) Regulations 2010 as if that one repayment were equal to the other repayments to be made under the agreement.

4.    Tolerance where interval between relevant date and first repayment is greater than interval between repayments

(a) In the case of a consumer credit agreement under which—

(i) three or more repayments are to be made at equal intervals, and

(ii) the interval between the relevant date and the first repayment is greater than the interval between the repayments,

there may be included in the agreement a rate found under regulation 5 of the Consumer Credit (Total Charge for Credit) Regulations 2010 as if the interval between the relevant date and the first repayment were shortened so as to be equal to the interval between repayments.

(b) In this paragraph “relevant date” means—

(i) in a case where a date is specified in or determinable under the consumer credit agreement at the date of its making as that on which the debtor is entitled to require provision of anything the subject of the agreement, the earliest such date, and

(ii) in any other case, the date of the making of the agreement.

(1)

S.I. 2010/1011.