The Consumer Credit (Advertisements) Regulations 2010

Restrictions on certain expressions in credit advertisements

10.—(1) A credit advertisement shall not include—

(a) the word “overdraft” or any similar expression as describing any agreement for running -account credit except an agreement enabling the debtor to overdraw on a current account,

(b) the expression “interest free” or any similar expression indicating that a customer is liable to pay no greater amount in respect of a transaction financed by credit than he would be liable to pay as a cash purchaser in relation to the like transaction, except where the total amount payable by the debtor does not exceed the cash price,

(c) the expression “no deposit” or any similar expression, except where no advance payments are to be made,

(d) the expression “loan guaranteed” or “pre-approved” or any similar expression, except where the agreement is free of any conditions regarding the credit status of the debtor, or

(e) the expression “gift”, “present” or any similar expression except where there are no conditions which would require the debtor to return the credit or items that are the subject of the claim.

(2) A credit advertisement shall not include in relation to any repayment of credit 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.

(3) In this regulation—

(a) “cash purchaser” means, in relation to any credit advertisement, a person who for a money consideration—

(i) acquires goods, land or other things, or

(ii) is provided with services,

under a transaction which is not financed by credit;

(b) “current account” means an account under which the customer may, by means of cheques or similar orders payable to the customer or to any other person or by any other means, obtain or have the use of money held or made available by the person with whom the account is kept and which records alterations in the financial relationship between the said person and the customer.