The Consumer Credit (EU Directive) Regulations 2010

Consumer Credit (Exempt Agreements) Order 1989

67.  In article 4 (exemption of certain consumer credit agreements by reference to the rate of the total charge for credit)—

(a) in paragraph (1)(b), for “subject to paragraph (2)” substitute—

“subject to paragraphs (2) and (2A)”;

(b) in paragraph (1)(c) for “subject to paragraph (2)” substitute—

“subject to paragraphs (2) and (2A)”;

(c) after paragraph (2) insert—

“(2A) Where the agreement referred to in paragraph (1)(b) or (c)—

(a) is not an agreement offered by a creditor who is an employer to a debtor as an incident of employment with the creditor, or

(b) is not an agreement secured on land,

those paragraphs do not apply to the agreement unless the conditions in paragraph (2B) are satisfied.

(2B) The conditions referred to in paragraph (2A) are—

(a) the agreement is offered under an enactment with a general interest purpose, and

(b) the rate of interest (if any) on the credit which may be provided under the agreement is—

(i) at a rate which is lower than that prevailing on the market,` or

(ii) at a rate which is not higher than that prevailing on the market where the other terms on which credit may be provided are more favourable for the debtor than those prevailing on the market.”.