Consumer Credit Act 1974

Yn ddilys o 01/02/2011

[F195ACompensatory amountU.K.

(1)This section applies where—

(a)a regulated consumer credit agreement, other than an agreement secured on land, provides for the rate of interest on the credit to be fixed for a period of time, and

(b)under section 94 the debtor discharges all or part of his indebtedness during that period.

(2)The creditor may claim an amount equal to the cost which the creditor has incurred as a result only of the debtor's indebtedness being discharged during that period if—

(a)the amount of the payment under section 94 exceeds £8,000 or, where more than one such payment is made in any 12 month period, the total of those payments exceeds £8,000,

(b)the agreement is not a debtor-creditor agreement enabling the debtor to overdraw on a current account, and

(c)the amount of the payment under section 94 is not paid from the proceeds of a contract of payment protection insurance.

(3)The amount in subsection (2)—

(a)must be fair,

(b)must be objectively justified, and

(c)must not exceed whichever is the lower of—

(i)the relevant percentage of the amount of the payment under section 94, and

(ii)the total amount of interest that would have been paid by the debtor under the agreement in the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor.

(4)In subsection (3)(c)(i) “relevant percentage” means—

(a)1%, where the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor is more than one year, or

(b)0.5%, where that period is equal to or less than one year.]

Yn ddilys o 21/03/2012

[F295BCompensatory amount: green deal financeE+W+S

(1)This section applies where—

(a)a regulated consumer credit agreement provides for the rate of interest on the credit to be fixed for a period of time (“the fixed rate period”),

(b)the agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011) which is of a duration specified for the purposes of this section in regulations, and

(c)under section 94 the debtor discharges all or part of his indebtedness during the fixed rate period.

(2)The creditor may claim an amount equal to the cost which the creditor has incurred as a result only of the debtor's indebtedness being discharged during the fixed rate period if—

(a)the amount of the payment under section 94 is not paid from the proceeds of a contract of payment protection insurance, and

(b)such other conditions as may be specified for the purposes of this section in regulations are satisfied.

(3)The amount in subsection (2)—

(a)must be fair,

(b)must be objectively justified,

(c)must be calculated by the creditor in accordance with provision made for the purposes of this section in regulations, and

(d)must not exceed the total amount of interest that would have been paid by the debtor under the agreement in the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor.

(4)If a creditor could claim under either section 95A or this section, the creditor may choose under which section to claim.]

Yn ddilys o 01/02/2011

[F397ADuty to give information on partial repaymentU.K.

(1)Where a debtor under a regulated consumer credit agreement—

(a)makes a payment by virtue of which part of his indebtedness is discharged under section 94, and

(b)at the same time or subsequently requests the creditor to give him a statement concerning the effect of the payment on the debtor's indebtedness,

the creditor must give the statement to the debtor before the end of the period of seven working days beginning with the day following that on which the creditor receives the request.

(2)The statement shall be in writing and shall contain the following particulars—

(a)a description of the agreement sufficient to identify it,

(b)the name, postal address and, where appropriate, any other address of the creditor and the debtor,

(c)where the creditor is claiming an amount under section 95A(2), that amount and the method used to determine it,

(d)the amount of any rebate to which the debtor is entitled—

(i)under the agreement, or

(ii)by virtue of section 95 where that is higher,

(e)where the amount of the rebate mentioned in paragraph (d)(ii) is given, a statement indicating that this amount has been calculated having regard to the Consumer Credit (Early Settlement) Regulations 2004,

(f)where the debtor is not entitled to any rebate, a statement to this effect,

(g)any change to—

(i)the number, timing or amount of repayments to be made under the agreement, or

(ii)the duration of the agreement,

which results from the partial discharge of the indebtedness of the debtor, and

(h)the amount of the debtor's indebtedness remaining under the agreement at the date the creditor gives the statement.]