The Consumer Credit (Quotations) Regulations 1989

Regulation 2(1)

SCHEDULE 1 INFORMATION TO BE CONTAINED IN QUOTATIONS RELATING TO CREDIT

Name and address

1.  The name and a postal address of the person giving the quotation, and where that person gives the quotation as a credit-broker the name of any other trader to whom the quotation relates.

Security

2.  A statement that any security is or may be required, and where the security comprises or may comprise a mortgage or charge on the debtor’s home a statement in the following form–

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”.

Insurance

3.  A statement of any contract of insurance required, not being a contract of insurance against the risk of loss or damage to goods or land or any risk relating to the use of the goods or land.

Deposit of money in an account

4.  A statement of any requirement to place on deposit any sum of money in any account with any person.

Credit-broker’s fees

5.  In the case of a quotation relating to a business comprising credit brokerage, the amount of any fee payable by the debtor or an associate of his to a credit-broker or a statement of the method of its calculation.

APR

6.—(1) The APR in relation to any actual or prospective agreement, other than an agreement specified in sub-paragraph (2) below, or a statement indicating that the total amount payable by the debtor is not greater than the total cash price of the goods, services, land or other things, the acquisition of which is to be financed by credit under the agreement.

(2) The APR in relation to a debtor-creditor-supplier agreement for running-account credit under which the debtor agrees to pay the creditor an amount specified in the agreement on specified occasions, there is a credit limit and charges for credit are either a fixed amount in respect of each transaction or calculated as a proportion of the price payable under a transaction financed by the credit, the APR being calculated on each of the following assumptions respectively–

(a) the debtor is provided with an amount of credit at the date of the making of the agreement which, taken with the amount of the charge for that credit ascertained at that date, is equal to the credit limit, and the debtor repays the sum of the said amounts by payments of the amounts specified in the agreement on the specified occasions and makes no other payment and obtains no further credit in relation to the account; and

(b) a like assumption to that in sub-paragraph (a) above save that the said sum of the said amounts shall be taken to be one-third of the credit limit.

(3) In relation to agreements under which the rate or amount of any item included in the total charge for credit will or may be varied, a statement indicating that the rate or amount will or may be varied.

Amount of credit

7.  In the case of a quotation relating to fixed-sum credit to be provided under a debtor-creditor agreement or under a credit-token agreement, a statement indicating the amount of credit which may be provided under the agreement.

Credit limit

8.  In the case of a quotation relating to running-account credit, the credit limit expressed as–

(a) a sum of money;

(b) a statement that the credit limit will be determined by the creditor from time to time under the agreement and that notice of it will be given by him to the debtor;

(c) a sum of money together with a statement that the creditor may vary the credit limit to such sum as he may from time to time determine under the agreement and that notice of it will be given by him to the debtor; or

(d) in a case not falling within head (a), (b) or (c) above, either a statement indicating the manner in which the credit limit will be determined and that notice of it will be given by the creditor to the debtor or a statement indicating that there is no credit limit.

Nature of security not affecting debtor’s home

9.  The nature of any security required where this does not comprise a mortgage or charge on the debtor’s home.

Frequency, number and amount of advance payments

10.  A statement of the frequency and number of any advance payments required and of the amount or minimum amount expressed as a sum of money or as a percentage or a statement indicating the manner in which the amount will be determined.

Different treatment of cash and credit purchasers

11.  A statement indicating any respect in which cash purchasers are treated differently from those acquiring any goods, land or other things, or being provided with services, under a transaction which is financed by credit.

Frequency, number and amount of repayments of credit

12.—(1) In the case of a quotation relating to an agreement for running-account credit, a statement of the frequency of the repayments of credit under the transaction and of the amount of each repayment stating whether it is a fixed or minimum amount, or a statement indicating the manner in which the amount will be determined.

(2) In the case of other quotations, a statement of the frequency, number and amount of repayments of credit.

(3) In the case of a quotation relating to an agreement under which interest on the credit to be provided is of a type to which sections 369 to 376 of the Income and Corporation Taxes Act 1988(1) apply (which make provision for the deduction of income tax at the basic rate from certain loan interest)–

(a) a further statement indicating whether the amount of any repayment of credit mentioned in the quotation is calculated before or after the deduction of tax; and

(b) where such a quotation indicates the amount of repayments both before and after deduction of tax, and in one or other such cases not all the repayments would be equal for the purposes of sub-paragraph (1) above, a statement indicating the lowest and the highest amounts and the exact year or other period in respect of which each such amount is to be paid, unless such information is included in the statement required under sub-paragraph (1) above.

(4) The quotation shall not include in relation to any repayment under this paragraph the expression “weekly equivalent” or any expression to the like effect or any expression of any other periodical equivalent, unless weekly payments or the other periodical payments are provided for under the agreement.

(5) The amount of any repayment under this paragraph may be expressed as a sum of money or as a specified proportion of a specified amount (including the amount outstanding from time to time).

Other payments and charges

13.—(1) Subject to sub-paragraphs (2) and (3) below, a statement indicating the description and amount of any other payments and charges which may be payable under the transaction to which the quotation relates.

(2) Where the liability of the debtor to make any payment cannot be ascertained at the date the quotation is given, a statement indicating the description of the payment in question and the circumstances in which the liability to make it will arise.

(3) Sub-paragraphs (1) and (2) above do not apply to any charge payable under the transaction to the creditor or any other person on his behalf upon failure by the debtor or a relative of his to do or refrain from doing anything which he is required to do or refrain from doing, as the case may be.

Total amount payable by the debtor

14.—(1) Subject to sub-paragraphs (2) and (3) below, in the case of a quotation relating to credit to be provided under a consumer credit agreement which is repayable at specified intervals or in specified amounts and other than cases under which the sum of the payments within sub-paragraphs (a) to (c) below is not greater than the cash price referred to in paragraph 15 below, the total amount payable by the debtor, being the total of–

(a) advance payments;

(b) the amount of credit repayable by the debtor; and

(c) the amount of the total charge for credit.

(2) In the case of an agreement for running-account credit the total amount payable by the debtor under this paragraph shall be calculated on each of the following assumptions–

(a) the debtor is provided with an amount of credit equal to the cash price of the goods or services less any advance payment required;

(b) there are no changes in the rates of interest on the credit which may be provided under the agreement;

(c) the debtor pays the amount stated in the quotation or if none is stated the fixed or minimum sums payable under the agreement;

(d) all repayments of credit and of the total charge for credit are made on the due date under the agreement; and

(e) the debtor acquires no further goods or is provided with no further services under the agreement.

(3) Sub-paragraph (1) above does not apply in the case of a quotation relating to running-account credit to be provided under a consumer credit agreement where the quotation does not specify goods, services, land or other things having a particular cash price, the acquisition of which is to be financed by the credit.

Cash price

15.  In the case of a quotation relating to credit to be provided under a debtor-creditor-supplier agreement, where the quotation specifies goods, services, land or other things having a particular cash price, the acquisition of which is to be financed by the credit, the cash price of such goods, services, land or other things.

Voluntary payments

16.  In the case of a quotation which includes particulars of any goods, services, land or other things which may be acquired by the debtor but which he is not obliged to acquire under the agreement to which the quotation relates or under any linked transaction, a statement indicating that the debtor is not under any obligation to acquire the goods, services, land or other things, as the case may be.

Credit repayable by proceeds of life insurance contracts

17.—(1) Where repayment of credit is to be made wholly or partly by money payable under a contract of life insurance which is a linked transaction in relation to the agreement under which the credit is provided, a statement of–

(a) the period for which insurance is to run;

(b) the amount (“the minimum sum assured”) of the money payable under the policy on the date of its expiry otherwise than on death excluding the amount of any bonus which may be declared in favour of the policy holder;

(c) the minimum amount payable on death, if different from the minimum sum assured; and

(d) the frequency, and the number of premiums or period for which they are payable under the contract of insurance, and the amount of each premium or a statement indicating the manner in which the amount will be determined.

(2) In a case to which sub-paragraph (1) above applies, where the minimum sum assured is less than the amount of credit provided, a statement indicating that where the total proceeds of the policy including any accumulated bonuses are less than the amount of credit, the debtor is required to pay to the creditor from his own resources the amount by which these proceeds fall short of the amount of credit.

Warning

18.  A statement in the following form–

“BE SURE YOU CAN AFFORD THE REPAYMENTS BEFORE ENTERING INTO A CREDIT AGREEMENT.”.

Foreign currency mortgages

19.  Where the quotation is for a mortgage or other loan secured on property and repayments are to be made in a currency other than sterling, a statement in the following form–

“THE STERLING EQUIVALENT OF YOUR LIABILITY UNDER A FOREIGN CURRENCY MORTGAGE MAY BE INCREASED BY EXCHANGE RATE MOVEMENTS.”.

(1)

1988 c. 1.