Help - fixed sum credit cca prescribed terms

[retrospect]

I am no lawyer and may be wrong here, could someone on the site team perhaps look into this?

Have been looking at the 1983 consumer credit (agreement) regulations

found here -

http://www.consumerforums.com/resources/templates-library/57-statutes/176-consumer-credit-act-1974-and-related-regulations-.html

 

After reading the following much quoted post, I thought the interest rate did not constitute one of the prescribed terms for fixed sum credit (most loans) credit agreements:

 

"The Prescribed Terms are these

A Amount of credit

A term stating the amount of credit

B Repayments

A term stating how the debtor is to discharge his obligations under the agreement to make the repayments, which may be expressed by reference to a combination of any of the following-

(a) Number of repayments;

(b) Amount of repayments;

© Frequency and timing of repayments;

(d) Dates of repayments;

(e) The manner in which any of the above may be determined; or in any other way, and any power of the creditor to vary what is payable.

C Rate of interest

A term stating the rate of interest to be applied to the credit issued under the agreement

D Credit limit

This may be a term or the manner in which it will be determined or that there is no credit limit

For a fixed Sum Credit Agreement

A and B apply"

Reading through the 1983 credit agreement regs, I noticed paragraph 9 of Schedule 1:

"Total charge for credit, rate of interest, etc.

9. Agreements for fixed-sum credit:

(1) The total charge for credit, with a list of its

constituent parts.

(2) The rate of interest on the credit to be

provided under the agreement or, where more

than one such rate applies, all the rates in all

cases quoted on a per annum basis with details of

when each rate applies

(3) A statement explaining how and when

interest charges are calculated and applied under

the agreement."

could someone who has an understanding of the cca 1974 and associated regulations please confirm whether the interest rate is part of the prescribed terms for fixed sum credit?

Edited April 16, 2009 by retrospect
seperated quotes from my text

[retrospect]

Schedule 1 of the regulations document is entitled

INFORMATION TO BE CONTAINED IN DOCUMENTS EMBODYING REGULATED CONSUMER CREDIT AGREEMENTS OTHER THAN MODIFYING AGREEMENTS

it seems that if interest rate is a prescribed term, it is not for all fixed sum credit agreements, as there are stated exceptions in the regulations. The full paragraph 9 of Schedule 1 reads:

 

9. Agreements for fixed-sum credit except

agreements--

(a) which do not specify either the intervals

between repayments or the amounts of repayments

or both the intervals and the amounts;

(b) under which the total amount payable by the

debtor to discharge his indebtedness in respect of

the amount of credit provided may vary according

to any formula specified in the agreement having

effect by reference to movements in the level of

any index or to any other factor;

© which provide for a variation of, or permit

the creditor to vary, (whether or not by reference to

any index) the amount or rate of any item included

in the total charge for credit after the relevant date;

or

(d) under which the total amount payable by the

debtor is not greater than the total cash price

referred to in paragraph 4.

 

(1) The total charge for credit, with a list of its

constituent parts.

(2) The rate of interest on the credit to be

provided under the agreement or, where more

than one such rate applies, all the rates in all

cases quoted on a per annum basis with details of

when each rate applies

(3) A statement explaining how and when

interest charges are calculated and applied under

the agreement

[retrospect]

could someone who has an understanding of the cca 1974 and associated regulations please confirm whether the interest rate is part of the prescribed terms for a fixed sum credit agreement

[42man]

I think you should PM Peterbard, as he is the one who set the 'is my agreement enforceable' that I quote....

[retrospect]

thanks 42man, will do as advised. would be interested in your opinion too if you are up for having a quick look at the regs - let's hope that the interest rate is one of the prescribed terms - i feel everyone should have the right to see something as important as the interest rate when signing up for a debt.

I'm hoping to clear my debts with full and final settlements out of court, and dodgy credit agreements can put a debtor in a stronger position when making offers.

[Peterbard]

HI

Yes it is a bit of a maze this one.

 

The agreement regulations scedule six ay that the prescribed term for interst applies to fixed sum credit agrements that fall with in the exeptions

in sechedule 1 a/b/c these are not the usual form of a conventional fixed sum agrement as usually the repayment are specified etc .

So it means that the interst is not prescribed term.

 

IN the earlier 1983/1553 regulations the interst was not mentioned at all in a conventional agreement so was not even required to be on the agreement at all.

The 2005/1492 ammende that and from August 2005 the interst was required to be on the agreement ona fixed sum, however the prescribed terms where not ammended by the 1482 so section six still refferd to the exculsions in 9 a/b/c so it never became a prescribed term.

 

Hope that helps

 

Peter

[retrospect]

HI

Yes it is a bit of a maze this one.

 

The agreement regulations scedule six ay that the prescribed term for interst applies to fixed sum credit agrements that fall with in the exeptions

in sechedule 1 a/b/c these are not the usual form of a conventional fixed sum agrement as usually the repayment are specified etc .

So it means that the interst is not prescribed term.

 

IN the earlier 1983/1553 regulations the interst was not mentioned at all in a conventional agreement so was not even required to be on the agreement at all.

The 2005/1492 ammende that and from August 2005 the interst was required to be on the agreement ona fixed sum, however the prescribed terms where not ammended by the 1482 so section six still refferd to the exculsions in 9 a/b/c so it never became a prescribed term.

 

Hope that helps

 

Peter

 

Ok, Im easily confused by the laws and regs, thank you for your help