UK Statutory Instrument 2004 United Kingdom

Consumer Credit (Early Settlement) Regulations 2004

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Enforced by

FCA

What's here

1 compliance obligation, 1 practical guide

Relevant guidance

Practical guides for businesses affected by this Act, ordered by how closely they engage with it.

Direct — cites this Act

1 guides

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

Schedules

Browse 2 other Schedules — structural / supplementary
s.schedule/paragraph/1n1

Example 1—medium term, medium value loan

s.schedule/paragraph/1n2

Example 2—longer term, high value loan

Browse 33 other sections — procedural / definitional / commencement
s.calculation of the amount of rebate (indebtedness

Calculation of the amount of rebate (indebtedness discharged in part)

s.examples illustrating use of formula for calculati

EXAMPLES ILLUSTRATING USE OF FORMULA FOR CALCULATING REBATE

s.para.13

The creditor receives notice from the debtor requesting early settlement...

s.para.14

Assuming that no charges are excluded from the calculation of...

s.para.15

The creditor opts to calculate the rebate using periods of...

s.para.16

Then the loan outstanding immediately after payment of the12th instalment...

s.para.17

If regulation 5(a) applies (making the settlement date 28 days...

s.para.18

If the creditor elects to defer the settlement date by...

s.para.19

For the calculation using the formula in regulation 4(1)— n...

s.para.20

Then the loan outstanding to be repaid immediately after payment...

s.para.21

The formula gives an amount outstanding after payment of the...

s.para.22

The debtor will also have to pay the instalment due...

s.para.23

Hence the total amount to be paid at the settlement...

s.para.24

For this example, the rebate would be £776.90; this is...

s.para.25

N.B. If the period between the 13th and 14th instalments...

s.para.27

Thus total amount repayable = £139.51 x 180 = £25,111.80....

s.para.28

The creditor receives notice from the borrower requesting early settlement...

s.para.29

Assuming that no charges are excluded from the calculation of...

s.para.30

The creditor opts to calculate the rebate using periods of...

s.para.31

Then the loan outstanding to be repaid immediately after payment...

s.para.32

The amount outstanding at the settlement date is then— £8,225.12...

s.para.33

Hence the total amount to be paid at the settlement...

s.para.34

N.B. If the period between the 72nd and 73rd instalments...

s.para.35

For this example, the rebate is £6,606.95; this is calculated...

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Official guidance

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Enforcement and responsible bodies

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FCA

Financial Conduct Authority

Regulation of financial services firms and markets. Supervises banks, insurers, investment firms, payment services, and cryptoasset businesses. Issues authorisations and enforces conduct …

Connected legislation

parent Act

These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.

Made under

Consumer Credit Act 1974 1974 Primary Act

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