The Consumer Credit (Advertisements) Regulations 1989

Regulation 2(1)

SCHEDULE 1INFORMATION IN CREDIT ADVERTISEMENTS

PART Imaximum information that may be contained in simple credit advertisementsin whole or in part

Name

1.  The name of the advertiser.

Logo

2.  A logo of his, of his associate and of his trade association.

Address

3.  A postal address of his.

Telephone number

4.  A telephone number of his.

Occupation

5.  An occupation of his or a statement of the general nature of his occupation.

Other information

6.  Any other information other than—

(a)information that a person is willing to provide credit; or

(b)the cash price, or other price, of any goods, services, land or other things.

PART IImaximum information to be contained in intermediate credit advertisementsCompulsory information

Name and address or telephone number

1.  The name of the advertiser and a postal address or telephone number of his (or a freephone number) except—

(a)in the case of advertisements in any form on the premises of a dealer or creditor (not being advertisements in writing which customers are intended to take away);

(b)in the case of advertisements which include the name and address of a dealer; and

(c)in the case of advertisements which include the name of a credit-broker and a postal address or telephone number of his (or a freephone number).

Security

2.  A statement that any security is or may be required, and where the security comprises or may comprise a mortgage or charge on the debtor’s home a statement in the following form:—

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”.

Insurance

3.  A statement of any contract of insurance required, not being a contract of insurance against the risk of loss or damage to goods or land or any risk relating to the use of the goods or land.

Deposit of money in an account

4.  A statement of any requirement to place on deposit any sum of money in any account with any person.

Credit-broker’s fee

5.  In the case of an advertisement published for the purposes of a business of credit brokerage carried on by any person, the amount of any fee payable by the debtor or an associate of his to a credit-broker or a statement of the method of its calculation.

Information about terms of business

6.  Either a statement that individuals may obtain on request a quotation in writing about the terms on which the advertiser is prepared to do business or a statement that individuals may obtain on request a document containing no less information than a full credit advertisement about the terms on which the advertiser is prepared to do business.

APR

7.  Where a cash price is given in the advertisement in relation to any specified goods, services, land or other things, having a particular cash price, the acquisition of which from an identified dealer may be financed by credit or where other information about financial and related particulars set out in paragraph 10(f) or (i) below is given in the advertisement—

(a)the APR in relation to any actual or prospective agreement, other than an agreement specified in sub-paragraph (b) below, or a statement indicating that the total amount payable by the debtor is not greater than the total cash price of the goods, services, land or other things, the acquisition of which is to be financed by credit under the agreement;

(b)the APR in relation to a debtor-creditor-supplier agreement for running-account credit under which the debtor agrees to pay the creditor an amount specified in the agreement on specified occasions, there is a credit limit and charges for credit are either a fixed amount in respect of each transaction or calculated as a proportion of the price payable under a transaction financed by the credit, the APR being calculated on each of the following assumptions respectively:—

(i)the debtor is provided with an amount of credit at the date of the making of the agreement which, taken with the amount of the charge for that credit ascertained at that date, is equal to the credit limit, and the debtor repays the sum of the said amounts by payments of the amounts specified in the agreement on the specified occasions and makes no other payment and obtains no further credit in relation to the account; and

(ii)a like assumption to that in sub-paragraph (i) above save that the said sum of the said amounts shall be taken to be one third of the credit limit; and

(c)in relation to agreements under which the rate or amount of any item included in the total charge for credit will or may be varied, a statement indicating that the rate or amount will or may be varied.

Cash price

8.  In the case of an advertisement relating to credit to be provided under a debtor-creditor-supplier agreement, where the advertisement specifies goods, services, land or other things having a particular cash price, the acquisition of which from an identified dealer may be financed by the credit, the cash price of such goods, services, land or other things.

Foreign currency mortgages

9.  Where the advertisement is for a mortgage or other loan secured on property and repayments are to be made in a currency other than sterling, a statement in the following form:—

“THE STERLING EQUIVALENT OF YOUR LIABILITY UNDER A FOREIGN CURRENCY MORTGAGE MAY BE INCREASED BY EXCHANGE RATE MOVEMENTS.”.

Optional information

10.  Any other information, except that no information may be shown indicating that a person is willing to provide credit other than as follows:—

(a) Logo

a logo of his, of his associate and of his trade association;

(b) Occupation

an occupation of his or a statement of the general nature of his occupation;

(c) Credit facilities

a statement that credit facilities are, or that a specified category of credit facility is, available, and where applicable a statement indicating the period or the maximum period of availability;

(d) Restricted offers of credit to class or group of persons

in the case of any credit being available only to, or on terms which are applicable only to, persons who fall within any class or group, a statement of that fact identifying that class or group;

(e) APR

where not shown under paragraph 7 above, the information about the APR specified in paragraph 7(a) to (c);

(f) Interest

where the APR is specified in the advertisement, the rate of any interest on the credit;

(g) Amount of credit

the amount of credit which may be provided under a consumer credit agreement or an indication of one or both of the maximum amount and the minimum amount of credit which may be provided;

(h) Nature of security not affecting debtor’s home

the nature of any security required where this does not comprise a mortgage or charge on the debtor’s home;

(i) Advance payment

where the APR is specified in the advertisement, a statement as to whether an advance payment is required and if so the amount or minimum amount of the payment expressed as a sum of money or as a percentage;

(j) Different treatment of cash and credit purchasers

a statement indicating any respect in which cash purchasers are treated differently from those acquiring any goods, land or other things, or being provided with services, under a transaction which is financed by credit; and

(k) Name and address or telephone number of creditor

in the case of an advertisement to which paragraph 1(c) above applies, the name of the creditor and a postal address or telephone number of his (or a freephone number).

PART IIIminimum information to be contained in full credit advertisements

Name and address

1.  The name and a postal address of the advertiser except—

(a)in the case of advertisements in any form on the premises of a dealer or creditor (not being advertisements in writing which customers are intended to take away);

(b)in the case of advertisements which include the name and address of a dealer; and

(c)in the case of advertisements which include the name and a postal address of a credit-broker.

Security

2.  A statement that any security is or may be required, and where the security comprises or may comprise a mortgage or charge on the debtor’s home a statement in the following form:—

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”.

Insurance

3.  A statement of any contract of insurance required, not being a contract of insurance against the risk of loss or damage to goods or land or any risk relating to the use of the goods or land.

Deposit of money in an account

4.  A statement of any requirement to place on deposit any sum of money in any account with any person.

Credit-broker’s fee

5.  In the case of an advertisement published for the purposes of a business of credit brokerage carried on by any person, the amount of any fee payable by the debtor or an associate of his to a credit-broker or a statement of the method of its calculation.

Quotation

6.  A statement that individuals may obtain on request a quotation in writing about the terms on which the advertiser is prepared to do business.

APR

7.—(1) The APR in relation to any actual or prospective agreement, other than an agreement specified in sub-paragraph (2) below, or a statement indicating that the total amount payable by the debtor is not greater than the total cash price of the goods, services, land or other things, the acquisition of which is to be financed by credit under the agreement.

(2) The APR in relation to a debtor-creditor-supplier agreement for running-account credit under which the debtor agrees to pay the creditor an amount specified in the agreement on specified occasions, there is a credit limit and charges for credit are either a fixed amount in respect of each transaction or calculated as a proportion of the price payable under a transaction financed by the credit, the APR being calculated on each of the assumptions set out in paragraph 7(b) of Part II of this Schedule respectively.

(3) In relation to agreements under which the rate or amount of any item included in the total charge for credit will or may be varied, a statement indicating that the rate or amount will or may be varied.

Restricted offers of credit to class or group of persons

8.  In the case of any credit being available only to, or on terms which are applicable only to, persons who fall within any class or group, a statement of that fact identifying that class or group.

Nature of security not affecting debtor’s home

9.  The nature of any security required where this does not comprise a mortgage or charge on the debtor’s home.

Frequency, number and amount of advance payments

10.  A statement of the frequency and number of any advance payments required and of the amount or minimum amount expressed as a sum of money or as a percentage or a statement indicating the manner in which the amount will be determined.

Different treatment of cash and credit purchasers

11.  A statement indicating any respect in which cash purchasers are treated differently from those acquiring any goods, land or other things, or being provided with services, under a transaction which is financed by credit.

Frequency, number and amount of repayments of credit

12.—(1) In the case of an advertisement relating to an agreement for running-account credit, a statement of the frequency of the repayments of credit under the advertised transaction and of the amount of each repayment stating whether it is a fixed or minimum amount, or a statement indicating the manner in which the amount will be determined.

(2) In the case of other credit advertisements, a statement of the frequency, number and amount of repayments of credit.

(3) In the case of an advertisement relating to an agreement under which interest on the credit to be provided is of a type to which sections 369 to 376 of the Income and Corporation Taxes Act 1988(1) apply (which make provision for the deduction of income tax at the basic rate from certain loan interest):—

(a)a further statement indicating whether the amount of any repayment of credit mentioned in the advertisement is calculated before or after the deduction of tax; and

(b)where such an advertisement indicates the amounts of repayments both before and after deduction of tax, and in one or other such case not all the repayments would be equal for the purposes of sub-paragraph (1) above, a statement indicating the lowest and the highest amounts and the exact year or other period in respect of which each such amount is to be paid, unless such information is included in the statement required under sub-paragraph (1) above.

(4) The advertisement shall not include in relation to any repayment under this paragraph 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.

(5) The amount of any repayment under this paragraph may be expressed as a sum of money or as a specified proportion of a specified amount (including the amount outstanding from time to time).

Other payments and charges

13.—(1) Subject to sub-paragraphs (2) and (3) below, a statement indicating the description and amount of any other payments and charges which may be payable under the transaction advertised.

(2) Where the liability of the debtor to make any payment cannot be ascertained at the date the advertisement is published, a statement indicating the description of the payment in question and the circumstances in which the liability to make it will arise.

(3) Sub-paragraphs (1) and (2) above do not apply to any charge payable under the transaction to the creditor or any other person on his behalf upon failure by the debtor or a relative of his to do or refrain from doing anything which he is required to do or refrain from doing, as the case may be.

Total amount payable by the debtor

14.—(1) Subject to sub-paragraphs (2) and (3) below, in the case of an advertisement relating to credit to be provided under a consumer credit agreement which is repayable at specified intervals or in specified amounts and other than cases under which the sum of the payments within sub-paragraphs (a) to (c) below is not greater than the cash price referred to in paragraph 15 below, the total amount payable by the debtor, being the total of—

(a)advance payments;

(b)the amount of credit repayable by the debtor; and

(c)the amount of the total charge for credit.

(2) In the case of an agreement for running-account credit the total amount payable by the debtor under this paragraph shall be calculated on each of the following assumptions:

(a)the debtor is provided with an amount of credit equal to the cash price of the goods or services less any advance payment required;

(b)there are no changes in the rates of interest on the credit which may be provided under the agreement;

(c)the debtor pays the amount stated in the advertisement or if none is stated the fixed or minimum sums payable under the agreement;

(d)all repayments of credit and of the total charge for credit are made on the due date under the agreement; and

(e)the debtor acquires no further goods or is provided with no further services under the agreement.

(3) Sub-paragraph (1) above does not apply in the case of an advertisement relating to running-account credit to be provided under a consumer credit agreement where the advertisement does not specify goods, services, land or other things having a particular cash price, the acquisition of which may be financed by the credit.

Cash price

15.  In the case of an advertisement relating to credit to be provided under a debtor-creditor-supplier agreement, where the advertisement specifies goods, services, land or other things having a particular cash price, the acquisition of which from an identified dealer may be financed by the credit, the cash price of such goods, services, land or other things.

Foreign currency mortgages

16.  Where the advertisement is for a mortgage or other loan secured on property and repayments are to be made in a currency other than sterling a statement in the following form:—

“THE STERLING EQUIVALENT OF YOUR LIABILITY UNDER A FOREIGN CURRENCY MORTGAGE MAY BE INCREASED BY EXCHANGE RATE MOVEMENTS.”.

Regulation 2(2)

SCHEDULE 2INFORMATION IN HIRE ADVERTISEMENTS

PART Imaximum information that may be contained in simple hire advertisementsin whole or in part

Name

1.  The name of the advertiser.

Logo

2.  A logo of his, of his associate and of his trade association.

Address

3.  A postal address of his.

Telephone number

4.  A telephone number of his.

Occupation

5.  An occupation of his or a statement of the general nature of his occupation.

Other information

6.  Any other information other than—

(a)information that a person is willing to enter into an agreement for the bailment of goods by him; or

(b)the cash price, or other price, of any goods.

PART IImaximum information to be contained in intermediate hire advertisementsCompulsory information

Name and address or telephone number

1.  The name of the advertiser and a postal address or telephone number of his (or a freephone number) except—

(a)in the case of advertisements in any form on the premises of a dealer or owner (not being advertisements in writing which customers are intended to take away);

(b)in the case of advertisements which include the name and address of a dealer; and

(c)in the case of advertisements which include the name of a credit-broker and a postal address or telephone number of his (or a freephone number).

Nature of transaction

2.  A statement indicating that the transaction advertised is the bailment of goods.

Security

3.  A statement that any security is or may be required, and where the security comprises or may comprise a mortgage or charge on the hirer’s home a statement in the following form:—

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A HIRE AGREEMENT SECURED BY A MORTGAGE OR OTHER SECURITY ON YOUR HOME.”.

Insurance

4.  A statement of any contract of insurance required, not being a contract of insurance against the risk of loss or damage to goods or any risk relating to the use of the goods.

Deposit of money in an account

5.  A statement of any requirement to place on deposit any sum of money in any account with any person.

Credit-broker’s fee

6.  In the case of an advertisement published for the purposes of a business of credit brokerage carried on by any person, the amount of any fee payable by the hirer or an associate of his to a credit-broker or a statement of the method of its calculation.

Information about terms of business

7.  Either a statement that individuals may obtain on request a quotation in writing about the terms on which the advertiser is prepared to do business or a statement that individuals may obtain on request a document containing no less information than a full hire advertisement about the terms on which the advertiser is prepared to do business.

Optional information

8.  Any other information, except that no information may be shown indicating that a person is willing to enter into an agreement for the bailment of goods by him other than as follows:—

(a) Logo

a logo of his, of his associate and of his trade association;

(b) Occupation

an occupation of his or a statement of the general nature of his occupation;

(c) Restricted offers of hire facilities to class or group of persons

in the case of any hire facilities being available only to, or on terms which are applicable only to, persons who fall within any class or group, a statement of that fact identifying that class or group;

(d) Nature of security not affecting hirer’s home

the nature of any security required where this does not comprise a mortgage or charge on the hirer’s home;

(e) Advance payment

a statement as to whether an advance payment is required and if so the amount or minimum amount of the payment expressed as a sum of money or as a percentage;

(f) Duration of hire

in a case where goods are to be bailed under an agreement for a fixed period or a maximum or minimum period, a statement indicating that this is the case and the duration of that period; and

(g) Name and address or telephone number of owner

in the case of an advertisement to which paragraph 1(c) above applies, the name of the owner and a postal address or telephone number of his (or a freephone number).

PART IIIminimum information to be contained in full hire advertisement

Name and address

1.  The name and a postal address of the advertiser except—

(a)in the case of advertisements in any form on the premises of a dealer or owner (not being advertisements in writing which customers are intended to take away);

(b)in the case of advertisements which include the name and address of a dealer; and

(c)in the case of advertisements which include the name and a postal address of a credit-broker.

Nature of transaction

2.  A statement indicating that the transaction advertised is the bailment of goods.

Security

3.  A statement that any security is or may be required, and where the security comprises or may comprise a mortgage or charge on the hirer’s home a statement in the following form:—

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A HIRE AGREEMENT SECURED BY A MORTGAGE OR OTHER SECURITY ON YOUR HOME.”.

Insurance

4.  A statement of any contract of insurance required, not being a contract of insurance against the risk of loss or damage to the goods or any risk relating to the use of the goods.

Deposit of money in an account

5.  A statement of any requirement to place on deposit any sum of money in any account with any person.

Credit-broker’s fee

6.  In the case of an advertisement published for the purposes of a business of credit brokerage carried on by any person, the amount of any fee payable by the hirer or an associate of his to a credit-broker or a statement of the method of its calculation.

Quotation

7.  A statement that individuals may obtain on request a quotation in writing about the terms on which the advertiser is prepared to do business.

Restricted offers of hire facilities to class or group of persons

8.  In the case of any hire facilities being available only to, or on terms which are applicable only to, persons who fall within any class or group, a statement of that fact identifying that class or group.

Nature of security not affecting hirer’s home

9.  The nature of any security required where this does not comprise a mortgage or charge on the hirer’s home.

Frequency, number and amount of advance payments

10.  A statement of the frequency and number of any advance payments required and of the amount or minimum amount expressed as a sum of money or as a percentage or a statement indicating the manner in which the amount will be determined.

Duration of hire

1  In a case where goods are to be bailed under an agreement for a fixed period or a maximum or minimum period, a statement indicating that this is the case and the duration of that period.

Frequency and amount of hire payments

12.  The frequency and amount of each hire payment stating if it be the case that it is a minimum amount and, in the case where the amount of any hire payment will or may be varied, a statement indicating that the amount will or may be varied and the circumstances in which it would happen:

Provided that the advertisement shall not include in relation to any hire payment 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 hire agreement.

Other payments and charges

13.—(1) Subject to sub-paragraphs (2) and (3) below, a statement indicating the description and amount of any payments and charge other than advance payments and hire payments which may be payable under the transaction advertised.

(2) Where the liability of the hirer to make any payment cannot be ascertained at the date the advertisement is published, a statement indicating the description of the payment in question and the circumstances in which the liability to make it will arise.

(3) Sub-paragraphs (1) and (2) above do not apply to any charge payable under the transaction to the owner or any other person on his behalf upon failure by the hirer or a relative of his to do or to refrain from doing anything which he is required to do or to refrain from doing, as the case may be.

Variable payments and charges

14.  Where any payment or charge referred to in paragraph 12 or 13 above may be varied under the hire agreement except to take account only of a change in value added tax (including a change to or from no tax being charged), a statement indicating that this is the case.

Regulation 1(2)

SCHEDULE 3PROVISIONS RELATING TO DISCLOSURE OF THE TOTAL CHARGE FOR CREDIT AND THE APR

Use of representative information in calculation of the total charge for credit and the APR

1.  Where, in the case of an advertisement relating to credit to be provided under a consumer credit agreement—

(a)the amount of any charge required to be included in the total charge for credit in respect of any transaction within a particular class of transactions is not ascertainable at the date when the advertisement is published or differs from the amount which applies in relation to another transaction within the same class; or

(b)any other fact required for such calculation is not ascertainable at that date or is different from a comparable fact in relation to another transaction within the same class,

there shall be included in the total charge for credit an amount in respect of that charge which, having regard to the amounts and facts which apply to other transactions within the same class, is representative of the charges which the advertiser might reasonably expect at the date the advertisement is published would apply in relation to transactions of the class in question, being transactions which he might then reasonably contemplate he would enter into on or after that date.

(2) If this paragraph is applied in relation to the amount of any charge or to any other fact—

(a)a sum in the determination of which any such amount or fact is employed shall not be taken to be the amount of the total charge for credit; and

(b)a rate of charge in the determination of which any such amount or fact is employed shall not be expressed to be the APR,

unless the advertisement either—

(i)identifies any such amount or fact and quantifies so far as practicable any such amount; or

(ii)contains an indication that representative amounts have been included in calculating the total charge for credit.

(3) For the purposes of this paragraph, a class of transactions means a class determined by reference to the subject-matter of the transactions or to the time at which, the circumstances in which or the persons with whom they are made.

Permissible tolerances in disclosure of the APR

2.  For the purposes of these Regulations, it shall be sufficient compliance with the requirement to show the APR if there is included in the advertisement—

(a)a rate which exceeds the APR by not more than one; or

(b)a rate which falls short of the APR by not more than 0·1; or

(c)in a case to which any of paragraphs 3 to 6 below applies, a rate determined in accordance with the paragraph or such of them as apply to that case.

Tolerance where repayments are nearly equal

3.  In the case of an agreement under which all repayments but one are equal and that one repayment does not differ from any other repayment by more whole pence than there are repayments of credit, there may be included in an advertisement relating to the agreement a rate found under any of regulations 7, 9 and 10 of the Total Charge for Credit Regulations as if that one repayment were equal to the other repayments to be made under the agreement.

Tolerance where interval between relevant date and first repayment is greater than interval between repayments

4.  In the case of an agreement under which—

(a)three or more repayments are to be made at equal intervals; and

(b)the interval between the relevant date and the first repayment is greater than the interval between the repayments,

there may be included in an advertisement relating to the agreement a rate found under any of regulations 7, 9 and 10 of the Total Charge for Credit Regulations as if the interval between the relevant date and the first repayment were shortened so as to be equal to the interval between repayments; and in this paragraph “relevant date” means, in a case where a date is specified in or determinable under the agreement at the date of its making as that on which the debtor is entitled to require provision of anything the subject of the agreement, the earliest such date and, in any other case, the date of the making of the agreement.

Tolerance where Consumer credit tables do not exactly apply

5.—(1) In a case where, in relation to any agreement the charge per pound lent, the flat rate or the period rate of charge, as the case may be, is not exactly represented by an entry in a table contained in the Consumer credit tables, there may be included in an advertisement relating to the agreement a rate found by applying the next greater entry appearing in those tables for the purposes of calculating that rate.

(2) In sub-paragraph (1) above “charge per pound lent”, “flat rate” and “period rate of charge” have the meanings assigned to them by the relevant Introduction or Instructions contained in the Consumer credit tables.

Tolerance where period rate of charge is charged

6.  In the case of an agreement to which regulation 7(1) of the Total Charge for Credit Regulations (agreements under which a period rate of charge is charged) applies, there may be included in an advertisement relating to the agreement a rate, being the APR determined as if no account were taken of any amount by which the total amount of the charges included in the total charge for credit in relation to each period is varied so as to bring that amount to the nearest whole penny, one half-penny being for this purpose expressed to the next higher whole penny.

Regulation 1(7)

SCHEDULE 4REVOCATIONS