Assessment of creditworthiness55B

1

Before making a regulated consumer credit agreement, other than an excluded agreement, the creditor must undertake an assessment of the creditworthiness of the debtor.

2

Before significantly increasing—

a

the amount of credit to be provided under a regulated consumer credit agreement, other than an excluded agreement, or

b

a credit limit for running-account credit under a regulated consumer credit agreement, other than an excluded agreement,

the creditor must undertake an assessment of the debtor’s creditworthiness.

3

A creditworthiness assessment must be based on sufficient information obtained from—

a

the debtor, where appropriate, and

b

a credit reference agency, where necessary.

4

For the purposes of this section an agreement is an excluded agreement if it is—

a

an agreement secured on land, or

b

an agreement under which a person takes an article in pawn.