UK Statutory Instrument SI 2004 United Kingdom

Consumer Credit (Early Settlement) Regulations 2004

These Regulations entitle the debtor under a regulated consumer credit agreement to a rebate where all or part of the amount payable to the creditor is paid before the date on which it is due. The Regulations replace the Consumer Credit (Rebate on Early Settlement) Regulations 1983 (“the 1983 Regulations”), …

Read it on legislation.gov.uk (opens in a new tab)
Enforced by
FCA
Status
In Force
Penalty ceiling
Regulated

Does it bind you?

Business-side roles with duties under this instrument.

Trader1

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Trader — also bound by 864 other Acts
Companies Act 2006 244 duties
Companies Act 1985 85 duties

What it requires

Regulations creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

s.002 Entitlement to rebate (opens in a new tab) Regulated
  • Give customers a rebate when they settle credit agreements earlyTrader
33 other provisions — procedural and definitional
s.001 Citation, commencement and interpretation (opens in a new tab)
s.003 Items included in the calculation of rebate (opens in a new tab)
s.004 Calculation of the amount of rebate (opens in a new tab)
s.005 Settlement date (opens in a new tab)
s.006 Deferment of settlement date (opens in a new tab)
s.007 Variation of rates and amounts (opens in a new tab)
s.008 Revocation of Regulations (opens in a new tab)
s.009 Amendment of Regulations (opens in a new tab)
s.010 Savings (opens in a new tab)
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...
Schedules

Schedules

0 of 2 shown
2 other schedules
s.schedule/paragraph/1n1 Example 1—medium term, medium value loan
s.schedule/paragraph/1n2 Example 2—longer term, high value loan

Help complying

Guvnor’s practical routes through this instrument.

Handle Section 75 claims from customers

What to do when a customer makes a Section 75 connected lender liability claim. Covers validating the claim against the £100 to …

Consumer credit compliance quick-check

Quick compliance check for experienced consumer credit firms. Covers FCA permissions, fee payments, credit advertising, pre-contract disclosures, Consumer Duty obligations, complaints handling, …

Handle early settlement and withdrawal requests

Consumers can repay a regulated credit agreement early at any time, and you must send a settlement statement within 7 working days …
2 more guides that reference this instrument
Consumer credit rates and thresholds reference Hire purchase and conditional sale agreements

Connected legislation

The wider family of instruments made under the same parent Act.

Duty extraction and severity labels are Guvnor’s analysis of the instrument, not the instrument itself. Always verify against the linked source text.