Q&As

Comprehend the law and how it impacts your clients. Q&As shine a light on common issues
Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the customer clears the arrears but leaves default sums outstanding, is the lender required to keep sending subsequent notices of sums in arrears under CCA 1974, s 86B(5)(b)?

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the customer clears the arrears but leaves default sums outstanding, is the lender required to keep sending subsequent notices of sums in arrears under CCA 1974, s 86B(5)(b)?

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the...

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the hirer—eg their partner or an agent?

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the hirer—eg their partner or an agent?

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the...

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal records or DBS checks?

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced criminal records or DBS checks?

Is there an obligation under the Senior Managers and Certification Regime (SM&CR) for senior managers to undergo either standard or enhanced...

Section 86B(5)(b) of the Consumer Credit Act 1974 defines arrears as including when any 'default sum, which has ever become payable under the agreement in connection with (the customer’s) failure to pay any sum under the agreement when required, is still owing'. This seems to suggest that if a default sum has been added to the account and the customer has not paid this, then the lender should keep sending notices of arrears. Is this the case even if a time has not been set for payment (ie the customer is able to pay the default sum as part of their last payment)? Is it also the case if the monthly payment is recalculated so that part of the monthly payment is going towards repaying the default sum?

Section 86B(5)(b) of the Consumer Credit Act 1974 defines arrears as including when any 'default sum, which has ever become payable under the agreement in connection with (the customer’s) failure to pay any sum under the agreement when required, is still owing'. This seems to suggest that if a default sum has been added to the account and the customer has not paid this, then the lender should keep sending notices of arrears. Is this the case even if a time has not been set for payment (ie the customer is able to pay the default sum as part of their last payment)? Is it also the case if the monthly payment is recalculated so that part of the monthly payment is going towards repaying the default sum?

Section 86B(5)(b) of the Consumer Credit Act 1974 defines arrears as including when any 'default sum, which has ever become payable under the...

Legal Guidance

Q&As

What CDD checks should be applied to a pooled account?

What CDD checks should be applied to a pooled account?What is CDD?Customer due diligence (CDD) is a package of measures which credit institutions...
13th May
Q&As

I am advising a bank which is opening an account for an established UK financial leasing company which it hasn’t dealt with before. The new customer has refused to respond to standard CDD checks, saying it is subject to the UK anti-money laundering regime and CDD is not required. Is this correct?

I am advising a bank which is opening an account for an established UK financial leasing company which it hasn’t dealt with before. The new customer...
13th May
Q&As

What guidance do you have on making an application to the FCA to become an authorised consumer credit firm? In particular in relation to compliance monitoring?

What guidance do you have on making an application to the FCA to become an authorised consumer credit firm? In particular in relation to compliance...
13th May
Q&As

Company A and Company B are co-investors into ProjectCo. Is Company A required/entitled to carry out KYC checks on ProjectCo's directors nominated by Company B, and if so what information can Company A request?

Company A and Company B are co-investors into ProjectCo. Is Company A required/entitled to carry out KYC checks on ProjectCo's directors nominated by...
13th May
Q&As

Is a creditor obligated to deal with a request under section 77 of the Consumer Credit Act 1974 when the Credit Agreement has already been terminated and there has been a County Court judgment obtained? Does the obligation only relate to 'live' agreements?

Is a creditor obligated to deal with a request under section 77 of the Consumer Credit Act 1974 when the Credit Agreement has already been terminated...
13th May
Q&As

Can a credit agreement be declared unenforceable as a result of irresponsible lending practices by the lender?

Can a credit agreement be declared unenforceable as a result of irresponsible lending practices by the lender?We refer you to the following Practice...
13th May
Q&As

I have a client who wishes to lend money to someone and take security of that person’s property. Could you point me to the consumer credit and regulated mortgage requirements that may affect the loan?

I have a client who wishes to lend money to someone and take security of that person’s property. Could you point me to the consumer credit and...
13th May
Q&As

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the hirer—eg their partner or an agent?

Does section 27 Hire Purchase Act 1964 apply if the hirer did not directly sell the car to an innocent third party but it was someone on behalf of the...
13th May
Q&As

When providing an early settlement quotation to a customer under a regulated hire purchase agreement, should the option to purchase fee be included in the early settlement calculation?

When providing an early settlement quotation to a customer under a regulated hire purchase agreement, should the option to purchase fee be included in...
13th May
Q&As

Is it a requirement to include the APR assumptions on a Consumer Hire Purchase Agreement?

Is it a requirement to include the APR assumptions on a Consumer Hire Purchase Agreement?This Q&A refers you to the following Practice Notes that may...
13th May
Q&As

Do you have a Precedent agreement for the sale and purchase of mortgage loans?

Do you have a Precedent agreement for the sale and purchase of mortgage loans?The following Precedents regarding the sale and purchase of mortgage...
13th May
Q&As

Are there any restrictions on terminating an open ended consumer credit agreement that does not contain any express right of termination?

Are there any restrictions on terminating an open ended consumer credit agreement that does not contain any express right of termination?BREXIT: 11pm...
13th May
Q&As

A family member is looking to loan a sum of money to another family member. The loan will be interest bearing and will not be secured. Would this loan fall within the consumer credit regime?

A family member is looking to loan a sum of money to another family member. The loan will be interest bearing and will not be secured. Would this loan...
13th May
Q&As

Does the settlement date (28 days/later date if requested) in the Consumer Credit (Early Settlement) Regulations 2004, SI 2004/1483, apply to loans secured over land? If the 28 days is calculated incorrectly or is not used, is the loan rendered unenforceable?

Does the settlement date (28 days/later date if requested) in the Consumer Credit (Early Settlement) Regulations 2004, SI 2004/1483, apply to loans...
Produced in partnership with Thomas Samuels of Gough Square Chambers 13th May
Q&As

How can parties be removed from consumer credit agreement regulated secured loans? Is a modification agreement required?

How can parties be removed from consumer credit agreement regulated secured loans? Is a modification agreement required?A joint consumer credit...
13th May
Q&As

What are the changes to the Pre-Contract Credit Information (Standard European Consumer Credit Information) of a Hire Purchase Agreement as a result of Brexit?

What are the changes to the Pre-Contract Credit Information (Standard European Consumer Credit Information) of a Hire Purchase Agreement as a result...
13th May
Q&As

Is there an exemption to having a consumer credit licence for short term agreements?

Is there an exemption to having a consumer credit licence for short term agreements?BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’)...
13th May
Q&As

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the customer clears the arrears but leaves default sums outstanding, is the lender required to keep sending subsequent notices of sums in arrears under CCA 1974, s 86B(5)(b)?

Where a lender is required to send notices of sums in arrears on a fixed sum loan under section 86B of the Consumer Credit Act 1974 (CCA 1974) and the...
Produced in partnership with Russell Kelsall of Walker Morris 13th May
Q&As

Is there a requirement to supply a customer with pre-contractual information in relation to unregulated consumer hire contracts (ie those for business purposes)? Also what is the legal status of a school? Would it be classified as an unincorporated body under the CCA 1974?

Is there a requirement to supply a customer with pre-contractual information in relation to unregulated consumer hire contracts (ie those for business...
13th May
Q&As

Can a lender sue if it does not have the original or complete credit agreement?

Can a lender sue if it does not have the original or complete credit agreement?BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the...
13th May

Filter

Sort by
Practice Area