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CCA 74 interpretation of s59

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Does anyone know what the purpose of s59 of the CCA 74 is?


Agreement to enter future agreement void.


59. — (1) An agreement is void if, and to the extent that, it purports to bind a person to enter as debtor or hirer into a prospective regulated agreement.

(2) Regulations may exclude from the operation of subsection (1) agreements such as are described in the regulations.


As far as I can tell, this prevents an application, where there is a commitment to the agreement on the part of the consumer but the creditor reserves rights pending further investigations or decisions, becoming and agreement at some later time, once the relevant checks/ investigations/ decisions have been taken.


Does anyone have a different interpretation?

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