The Consumer Credit (Agreements) (Amendment) Regulations 2004

• Citation: S.I. 2004/1482
• Sections: 18

Section 1 Citation and commencement

These Regulations may be cited as the Consumer Credit (Agreements) (Amendment) Regulations 2004 and shall come into force on 31st May 2005.

Section 2 Amendment of the Consumer Credit (Agreements) Regulations 1983

The Consumer Credit (Agreements) Regulations 1983 shall be amended as follows.

Section 3 Amendment of the Consumer Credit (Agreements) Regulations 1983

(1) Regulation 1(2) (interpretation) shall be amended as follows.

(2) Insert at the appropriate place—

“contract of shortfall insurance” means anything in writing which contains or purports to contain some promise or assurance (however worded or presented) that if a sum payable under a contract of insurance against loss of or damage to goods is less than the amount necessary to defray—

any amount of credit provided to finance the purchase of those goods; and

any other amount included in the total charge for that credit,

to the extent that these remain unpaid at the date of the loss or damage, a sum up to but not exceeding that shortfall will be paid.”

(3) In the definition of “total charge for credit” after the words “Total Charge for Credit Regulations” insert “and Schedule 7 to these Regulations”.

Section 4

For regulation 2 (form and content of regulated consumer credit agreements) substitute—

Form and content of regulated consumer credit agreements

(2)

(1) Subject to paragraphs (2) and (9) below, documents embodying regulated consumer credit agreements (other than modifying agreements) shall contain the information set out in Column 2 of Schedule 1 to these Regulations in so far as it relates to the type of agreement referred to in Column 1.

(2) Where any information about financial and related particulars set out in paragraphs 9 to 11 of Schedule 1 to these Regulations cannot be exactly ascertained by the creditor, estimated information based on the assumptions referred to in paragraph 10 of that Schedule, where applicable, and otherwise such assumptions as the creditor may reasonably make in all the circumstances of the case and a statement of the assumptions made shall be included in documents embodying regulated consumer credit agreements.

(3) Subject to paragraph (9) below, documents embodying regulated consumer credit agreements, other than agreements of the description specified in the Schedule to the Consumer Credit (Notices of Cancellation Rights) (Exemptions) Regulations 1983 in relation to which there are no charges forming part of the total charge for credit (in this regulation referred to as “exempted agreements”), shall contain statements of the protection and remedies available to debtors under the Act, in the Form numbered in Column 1 of Part 1 of Schedule 2 to these Regulations and set out in Column 3, in so far as they relate to the type of agreement referred to in Column 2.

(4) Subject to paragraphs (5) and (9) below, the information, statements of the protection and remedies, signature and separate boxes which this regulation requires documents embodying regulated consumer credit agreements to contain, shall be set out in the order given by paragraphs (a) to (f) below under, where applicable, the headings specified below—

(a) the nature of the agreement as set out in paragraph 1 of Schedule 1 to these Regulations;

(b) the parties to the agreement as set out in paragraph 2 of Schedule 1 to these Regulations;

(c) under the heading “Key Financial Information”, the financial and related particulars set out in paragraphs 6 to 8B, 11 to 14 and 15 to 17 of Schedule 1 to these Regulations;

(d) under the heading “Other Financial Information”, the financial and related particulars set out in paragraphs 3 to 5, 9, 10, 14A and 18 to 19A of Schedule 1 to these regulations;

(e) under the heading “Key Information”—

(i) the information set out in paragraphs 20 to 24 of Schedule 1 to these Regulations; and

(ii) the statements of protection and remedies set out in Schedule 2 to these Regulations; and

(f) the signature box and, where applicable, the separate box required by paragraph (7)(b) below;

and such information, statements of protection and remedies, signature and separate boxes shall be shown together as a whole and shall not be preceded by any information apart from trade names, logos or the reference number of the agreement or interspersed with any other information or wording apart from subtotals of total amounts and cross references to the terms of the agreement.

(5) In the case of documents embodying restricted-use debtor-creditor-supplier agreements for fixed-sum credit to finance a transaction comprising the acquisition of goods, services, land or other things specified in the agreement or identified and agreed on at the time the agreement is made and relating to more than one description of goods, services, land or other things, the cash prices, and the total cash price, referred to in paragraph 4 of Schedule 1 to these Regulations may be shown in a schedule to such document together with each description of the goods, services, land or other things, provided that the total cash price and a reference to the schedule to such document are shown together with the information required by paragraph (4)(d) above.

(6) The APR referred to in paragraphs 15 to 17 of Schedule 1 to these Regulations shall in documents embodying regulated consumer credit agreements, other than exempted agreements—

(a) be denoted as “APR” or “annual percentage rate” or “annual percentage rate of the total charge for credit; and

(b) where it is subject to change, be accompanied by the word “variable”.

(7) Documents embodying regulated consumer credit agreements other than exempted agreements shall, subject to paragraph (9) below, contain a signature box in the Form numbered in Column 1 of Part 1 of Schedule 5 to these Regulations and set out in Column 3 in so far as it relates to the type of agreement referred to in Column 2 and shall—

(a) if—

(i) the documents embody a principal agreement and subsidiary agreement to which paragraph (9) below applies; or

(ii) at the time of entering into the agreement the debtor is also purchasing an optional contract of insurance which will be financed by credit advanced under that agreement,

contain a form of consent in the Form set out in Part III of Schedule 5 immediately below the signature box required by this paragraph; and

(b) if the agreement is one to which section 58(1) of the Act applies, is a cancellable agreement or is an agreement under which a person takes any article in pawn and under which the pawn-receipt is not separate from the document embodying the agreement, contain a separate box immediately above, below or adjacent to the signature box in which shall be included the appropriate statements specified in Forms 1 and 4 to 6 of Part 1, and in Part II, of Schedule 2.

(8) Paragraph (9) applies to documents embodying a debtor-creditor-supplier agreement falling within section 12(a) of the Act or a debtor-creditor agreement (in this paragraph and paragraph (9) in either case referred to as “the principal agreement”) and also embodying, or containing the option of, a debtor-creditor-supplier agreement falling within section 12(b) of the Act (in this paragraph and paragraph (9) referred to as “the subsidiary agreement”) where the subsidiary agreement is to finance a premium under one or more of—

(a) a contract of insurance to provide a sum payable in the event of the death of a debtor or a debtor suffering one or more of the following:—

(i) accident;

(ii) sickness; and

(iii) unemployment,

at any time before the credit under the principal agreement and the subsidiary agreement has been repaid, where the sum payable does not exceed the amount sufficient to defray the sums payable to the creditor in respect of that credit and of the total charge for credit and where the policy monies payable under the contract of insurance are to be used for a repayment under the principal agreement and the subsidiary agreement;

(b) a contract of shortfall insurance; and

(c) a contract of insurance in so far as it relates to the guarantee of goods.

(9) Documents to which this paragraph applies may contain instead of the headings specified in paragraph 1 of Schedules 1 or 8 to these Regulations, statements of protection and remedies available to debtors under the Act and signature boxes that would otherwise apply—

(a) a heading and signature box in so far as they relate to the principal agreement;

(b) a statement in Form 14 of Part I of Schedule 2 to these Regulations; and

(c) other statements (other than in Form 16 of Part I of Schedule 2) of the protection and remedies available to debtors under the Act in so far as they relate to the principal agreement.

(10) Documents embodying regulated consumer credit agreements shall embody any security provided in relation to the regulated agreement by the debtor.

Section 5

(1) Regulation 3 (form and content of regulated consumer hire agreements) shall be amended as follows.

(2) For paragraph 4 substitute—

(4) Subject to paragraph (5) below the information, statements of the protection and remedies, signature and separate boxes which this regulation requires documents embodying regulated consumer hire agreements to contain, shall be set out in the order given by paragraphs (a) to (e) below under, where applicable, the headings specified below:—

(a) the nature of the agreement as set out in paragraph 1 of Schedule 3 to these Regulations;

(b) the parties to the agreement as set out in paragraph 2 of Schedule 3 to these Regulations;

(c) under the heading “Key Financial Information”, the financial and related particulars set out in paragraphs 3 to 8 of Schedule 3 to these Regulations;

(d) under the heading “Key Information”—

(i) the information set out in paragraphs 9 to 11 of Schedule 3 to these Regulations; and

(ii) the statements of protection and remedies set out in Schedule 4 to these Regulations; and

(e) the signature box and, where applicable, the separate box required by paragraph (6) below,

and such information, statements of protection and remedies, signature and separate boxes shall be shown together as a whole and shall not be preceded by any information apart from trade names, logos or the reference number of the agreement or interspersed with any other information or wording apart from subtotals of total amounts and cross references to the terms of the agreement.

(3) In paragraph 5 for the words “paragraphs 4 to 8 of Schedule 3” substitute “paragraph (4)(c) above”.

(4) In paragraph 6 for the words “Forms 1 to 3” substitute “Forms 1, 4 and 5”

Section 6

In regulation 4(b) (pawn-receipts) for the words “numbered 16” substitute “numbered 18”.

Section 7

In regulation 5(4) (statutory forms) omit the words “the APR,”.

Section 8

For regulation 6(2) (signing of the agreement) substitute—

(2) The lettering of the terms of the agreement included in the document referred to in section 61(1)(a) of the Act, containing all the prescribed terms of the regulated agreement, and of the information contained in that document for the purpose of conforming to these Regulations shall—

(a) apart from any signature, be easily legible and, where applicable, be of a colour which is readily distinguishable from the background medium upon which the information is displayed; and

(b) apart from that inserted in handwriting, be of equal prominence, except that headings, trade names and names of parties to the agreement may be afforded more prominence whether by capital letters, underlining, larger or bold print or otherwise.

Section 9

(1) Regulation 7 (modifying agreements which are, or are treated as, regulated agreements) shall be amended as follows.

(2) For paragraph (3) substitute—

(3) Where any information about financial and related particulars set out in paragraphs 8 to 10 of Part 1 of Schedule 8 to these Regulations cannot be exactly ascertained by the creditor, estimated information based on the assumptions referred to in paragraph 9 of that Schedule, where applicable, and otherwise such assumptions as the creditor may reasonably make in all the circumstances of the case and a statement of the assumptions made shall be included in documents embodying modifying agreements varying or supplementing earlier credit agreements.

(3) For paragraph (4) substitute—

(4) Subject to paragraph (5) below and regulation 2(9), the information, statements of the protection and remedies, signature and separate boxes which under these Regulations must be contained in documents embodying modifying agreements varying or supplementing earlier credit agreements in relation to the credit being provided under the modifying agreement, shall be set out in the order given by paragraphs (a) to (f) below under, where applicable, the headings specified below—

(a) the nature of the agreement as set out in paragraph 1 of Part 1 of Schedule 8 to these Regulations;

(b) parties to the agreement as set out in paragraph 2 of Part 1 of Schedule 8 to these Regulations;

(c) under the heading “Key Financial Information”, the financial and related particulars set out in paragraphs 5 to 7B, 10 to 13 and 14 to 17 of Part 1 of Schedule 8 to these Regulations;

(d) under the heading “Other Financial Information”, the financial and related particulars set out in paragraphs 3, 4, 8, 9, 13A and 18 to 19A of Part 1 of Schedule 8 to these Regulations;

(e) under the heading “Key Information”—

(i) the information set out in paragraphs 20 to 24 of Part 1 of Schedule 8 to these Regulations; and

(ii) the statements of protection and remedies set out in Schedule 2 to these Regulations; and

(f) the signature box and, where applicable, separate box required by regulation 2(7)(b),

and such information, statements of protection and remedies, signature and separate boxes shall be shown together as a whole and shall not be preceded by any information apart from trade names, logos or the reference number of the agreement or interspersed with any other information or wording apart from subtotals of total amounts and cross references to the terms of the agreement.

(4) In paragraph (5) for the words “remaining financial and related particulars” to the end of the paragraph substitute “the information required by paragraph (4)(d) above.”.

(5) For paragraph (6)(b) substitute—

(b) where it is subject to change, be accompanied by the word “variable”.

(6) For paragraph 11 substitute—

(11) The information, statements of the protection and remedies, signature and separate boxes which under these Regulations must be contained in documents embodying modifying agreements varying or supplementing earlier hire agreements in relation to the goods to be bailed or hired under the modifying agreement, shall be set out in the order given by paragraphs (a) to (e) below under, where applicable, the headings specified below—

(a) the nature of the agreement as set out in paragraph 1 of Part II of Schedule 8 to these Regulations;

(b) the parties to the agreement as set out in paragraph 2 of Part II of Schedule 8 to these Regulations;

(c) under the heading “Key Financial Information”, the financial and related particulars set out in paragraphs 3 to 8 of Part II of Schedule 8 to these Regulations;

(d) under the heading “Key Information”—

(i) the information set out in paragraphs 9 to 11 of Part II of Schedule 8 to these Regulations; and

(ii) the information set out in Schedule 4 to these Regulations; and

(e) the signature box and, where applicable, separate box required by regulation 3(6).

and such information, statements of protection and remedies, signature and separate boxes shall be shown together as a whole and shall not be preceded by any information apart from trade names, logos or the reference number of the agreement or interspersed with any other information or wording apart from subtotals of total amounts and cross references to the terms of the agreement.

Section 10

(1) Schedule 1 (information to be contained in documents embodying regulated consumer credit agreements other than modifying agreements) shall be amended as follows.

(2) For paragraph 1 substitute—

Subject to paragraph (2) below, a heading in one of the following forms of words—

“Hire-Purchase Agreement regulated by the Consumer Credit Act 1974”;

“Conditional Sale Agreement regulated by the Consumer Credit Act 1974”;

“Fixed-Sum Loan Agreement regulated by the Consumer Credit Act 1974”; or

“Credit Card Agreement regulated by the Consumer Credit Act 1974”,

as the case may require.

If none of the headings in 1(a) to (d) above are applicable a heading in the following form of words—“Credit Agreement regulated by the Consumer Credit Act 1974”.

Where the document and a pawn-receipt are combined, the words “, and Pawn Receipt,” shall be inserted in the heading after the word “Agreement”.

Where the document embodies an agreement of which at least one part is a credit agreement not regulated by the Act, the word “partly” shall be inserted before “regulated” unless the regulated and unregulated parts of the agreement are clearly separate.

Where the credit is being secured on land the words “secured on” followed by the address of the land shall be inserted at the end of the heading.

(3) After paragraph 8 insert—

(4) For paragraph 9 substitute—

Agreements for fixed-sum credit except agreements—

which do not specify either the intervals between repayments or the amounts of repayments or both the intervals and the amounts;

under which the total amount payable by the debtor to discharge his indebtedness in respect of the amount of credit provided may vary according to any formula specified in the agreement having effect by reference to movements in the level of any index or to any other factor;

which provide for a variation of, or permit the creditor to vary, (whether or not by reference to any index) the amount or rate of any item included in the total charge for credit after the relevant date; or

under which the total amount payable by the debtor is not greater than the total cash price referred to in paragraph 4.

The total charge for credit, with a list of its constituent parts.

The rate of interest on the credit to be provided under the agreement or, where more than one such rate applies, all the rates in all cases quoted on a per annum basis with details of when each rate applies.

A statement explaining how and when interest charges are calculated and applied under the agreement.

(5) For paragraph 10 substitute—

Agreements for—

running-account credit; and

fixed-sum credit falling within the exceptions in paragraph 9(a) to (c).

The total charge for credit with a list of its constituent parts and in the case of running-account credit, the total charge for credit shall be calculated on the same assumptions as are set outin paragraph 1 of Schedule 7 for the purpose of calculating the APR in place of the assumptions in Part 4 of the Total Charge for Credit Regulations that might otherwise apply.

The rate of interest on the credit to be provided under the agreement or, where more than one such rate applies, all the rates in all cases quoted on a per annum basis with details of when each rate applies.

A statement whether any interest rate to be shown under (2) above is fixed or variable.

A statement explaining how and when interest charges are calculated and applied under the agreement.

(6) After paragraph 14 insert—

All types where different interest rates or different charges or both are or will be at any time during the term of the agreement payable in respect of—

credit provided under the agreement for different purposes; or

under each of the different parts of the agreement,

whether or not the agreement is a multiple agreement.

A statement of the order or proportions in which any amount paid by the debtor which is not sufficient to discharge the total debt then due under the agreement will be applied or appropriated by the creditor towards the discharge of the sums due—

in respect of the amounts of credit provided for different purposes, or

different parts of the agreement,

as the case may be.

(7) For paragraph 22 substitute—

A list of any charges payable under the agreement to the creditor 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.

A statement indicating any term of the agreement which provides for charges—

not required to be shown under (1) above; or

not included in the total charge for credit.

(8) After paragraph 22 insert—

Examples based on the amount of credit to be provided under the agreement or the nominal amount of either £1000 or £100, showing the amount that would be payable if the debtor exercised the right under section 94 of the Act to discharge his indebtedness on the date when—

a quarter of the term of the agreement elapses;

half of the term elapses; and

three quarters of the term elapses.

or on the first repayment date after each of those dates.

A statement explaining that, in calculating the amounts shown, no account has been taken of any variation which might occur under the agreement, and that the amounts are accordingly only illustrative.

Section 11

For Schedule 2 (forms of statement and remedies available under the Consumer Credit Act 1974 to debtors under regulated consumer credit agreements) substitute—

Forms of Statement of Protection and Remedies Available under the Consumer Credit Act 1974 to Debtors under Regulated Consumer Credit Agreements

Notice to be contained in Documents Embodying a Combined Consumer Credit Agreement and Pawn-Receipt

Section 12

(1) Schedule 3 (information to be contained in documents embodying regulated consumer hire agreements other than modifying agreements) shall be amended as follows.

(2) For paragraph 1 substitute—

A heading in the following form of words—“Hire Agreement regulated by the Consumer Credit Act 1974”.

Where the agreement to hire is being secured on land the words “secured on” and the address of the land shall be inserted at the end of the heading.

(3) For paragraph 10 substitute—

A list of any charges payable under the agreement to the owner upon failure by the hirer 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.

A statement indicating any term of the agreement which provides for charges not required to be shown under (1) above.

(4) After paragraph 10 insert—

Section 13

For Schedule 4 (forms of statement of protection and remedies available under the Consumer Credit Act 1974 to hirers under regulated consumer hire agreements) substitute—

Forms of Statement of Protection and Remedies Available under the Consumer Credit Act 1974 to Hirers Under Regulated Consumer Hire Agreements

Section 14

After Part II of Schedule 5 (forms of signature box) insert—

Agreements Under Which a Separate Form of Consent is Required

Section 15

In Schedule 7 (provisions relating to the disclosure of the APR) for paragraph 1 substitute—

Assumptions about running-account credit

(1) In the case of an agreement for running-account credit, the following assumptions shall have effect for the purpose of calculating the APR in place of the assumptions in Part 4 of the Total Charge for Credit Regulations that might otherwise apply—

(1) in any case where there will be a credit limit but that limit is not known at the date of making the agreement the amount of the credit to be provided shall be taken to be £1,500 or, in a case where the credit limit will be less than £1,500, an amount equal to that limit;

(2) it shall be assumed that the credit is provided for a period of one year beginning with the relevant date;

(3) it shall be assumed that the credit is provided in full on the relevant date;

(4) where the rate of interest will change at a time provided in the agreement within a period of three years beginning with the date of the making of the agreement, the rate shall be taken to be the highest rate at any time obtaining under the agreement in that period;

(5) where the agreement provides credit to finance the purchase of goods, services, land or other things and also provides one or more of—

(a) cash loans;

(b) credit to refinance existing indebtedness of the debtor's, whether to the creditor or another person; and

(c) credit for any other purpose,

and either or both different rates of interest and different charges are payable in relation to the credit provided for all or some of these purposes, it shall be assumed that the rate of interest and charges payable in relation to the whole of the credit are those applicable to the provision of credit for the purchase of goods, services, land or other things;

(6) it shall be assumed that the credit is repaid—

(a) in twelve equal instalments, and

(b) at monthly intervals, beginning one month after the relevant date.

Permissible tolerances in disclosure of the APR

(1A) For the purposes of these Regulations, it shall be sufficient compliance with the requirement to show the APR if there is included in the document—

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

(2) a rate which falls short of the APR by not more than 0.1; or

(3) in a case to which either of paragraphs 2 or 3 below applies, a rate determined in accordance with the paragraph or such of them as apply to that case.

Section 16

(1) Schedule 8, part 1 (information to be contained in documents embodying regulated modifying agreements varying or supplementing earlier credit agreements) is amended as follows.

(2) For paragraph 1 substitute—

A heading in one of the following forms of words—

“Agreement modifying a Hire-Purchase Agreement and regulated by the Consumer Credit Act 1974”;

“Agreement Modifying a Conditional Sale Agreement and regulated by the Consumer Credit Act 1974”;

“Agreement modifying a Fixed-Sum Loan Agreement and regulated by the Consumer Credit Act 1974”;

“Agreement modifying a Credit Card Agreement and regulated by the Consumer Credit Act 1974”; or

“Agreement modifying a Credit Agreement and regulated by the Consumer Credit Act 1974”

as the case may require.

Where the document and a pawn-receipt are combined, the words “, and Pawn-Receipt,” shall be inserted in the heading after the word “Agreement” in the second place that it occurs.

Where the document embodies an agreement of which at least one part is a credit agreement not regulated by the Act, the word “partly” shall be inserted before “regulated” unless the regulated and unregulated parts of the agreement are clearly separate.

Where the loan is being secured on land the words “secured on” and the address of the land shall be inserted at the end of the heading.

(3) In paragraph 5—

(a) For subparagraph (b) of column 1 substitute—

(b) modifying agreements where the earlier agreement is an agreement excluded from the scope of the Consumer Credit (Early settlement) Regulations 2004 by regulation 2(2) of these Regulations.

(b) for subparagraph (3) of column 2 substitute—

(3) The total amount of the charges on the credit not yet accrued referred to in sub-paragraph (2) above shall be the amount of a notional rebate calculated in accordance with the Consumer Credit (Early Settlement) Regulations 2004 as if early settlement had taken place and as if the settlement date were the relevant date disregarding any deferment of the settlement date under regulation 6 of those Regulations.

(4) For paragraph 6 substitute—

The total amount of the credit to be provided under the modified agreement calculated as follows, namely the total of—

the balance of the credit outstanding under the earlier agreement at the relevant date;

any charges thereon (included in the total charge for credit in relation to the credit to be provided under the earlier agreement) due and unpaid at the relevant date;

the amount of any additional credit to be provided under the modifying agreement, with a list of its constituent parts.

(5) After paragraph 7 insert—

(6) For paragraph (8) substitute—

Modifying agreements under which any charge included in the total charge for credit in relation to an earlier agreement for fixed-sum credit is varied or supplemented, except modifying agreements—

which do not specify either the intervals between repayments under the modified agreement or the amounts of repayments or both the intervals and the amounts;

under which the total amount payable by the debtor under the modified agreement to discharge his indebtedness in respect of the amount of credit provided may vary according to any formula specified in such agreement having effect by reference to movements in the level of any index or to any other factor;

which provide for a variation of, or permit the creditor to vary, (whether or not by reference to any index) the amount or rate of any item included in the total charge for credit in relation to the modified agreement after the relevant date; or

under which the total amount payable by the debtor under the modified agreement is not greater than the total cash price under that agreement .

The total charge for credit in relation to the credit to be provided under the modified agreement, with a list of its constituent parts.

The varied or supplemented rates of any interest on the credit to be provided under the modified agreement quoted on a per annum basis, or a statement that the rates of interest under the earlier agreement are unchanged.

A statement explaining how and when interest charges are calculated and applied under the modified agreement.

(7) For paragraph 9 substitute—

Modifying agreements under which—

any charge included in the total charge for credit in relation to an earlier agreement for fixed-sum credit is varied or supplemented and which fall within the exceptions in paragraph 8 (a) to (c); or

the rate of any other charge included in the total charge for credit in relation to an earlier agreement for running-account credit is varied or supplemented.

The total charge for credit in relation to the credit to be provided under the modified agreement with a list of its constituent parts and in the case of running-account credit, the total charge for credit shall be calculated on the same assumptions as are set out in paragraph 1 of Schedule 7 for the purpose of calculating the APR in place of the assumptions in Part 4 of the Total Charge for Credit Regulations that might otherwise apply.

The varied or supplemented rates of any interest on the credit to be provided under the modified agreement quoted on a per annum basis, or a statement that the rates of interest under the earlier agreement are unchanged.

A statement whether the interest rates to be shown under (2) above are fixed or variable

A statement explaining how and when interest charges are calculated and applied under the modified agreement.

(8) After paragraph 13 insert—

Modifying agreements under which—

an earlier agreement is varied or supplemented so that different interest rates or different charges forming part of the total charge for credit or both are payable in respect of—

credit provided under the agreement for different purposes; or

different parts of the agreement,

whether or not the agreement is a multiple agreement; or

an earlier agreement is varied by varying the order or proportions in which any amount paid by the debtor which is not sufficient to discharge the total debt then due under the agreement will be applied or appropriated by the creditor towards the discharge of the sums due—

in respect of the amounts of credit provided for different purposes, or

under each of the different parts of the agreement,

as the case may require.

A statement of the order or proportions in which any amount paid by the debtor which is not sufficient to discharge the total debt then due under the agreement will be applied or appropriated by the creditor towards the discharge of the sums due—

in respect of the amounts of credit provided for different purposes, or

under each of the different parts of the agreement,

as the case may be.

(9) For paragraph 22 substitute—

A list of any charges payable under the modified agreement to the creditor 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, or a statement indicating that no such charges are payable as the case may be.

A statement indicating any term of the modified agreement which provides for charges

not required to be shown under (1) above; or

included in the total charge for credit.

(10) After paragraph 22 insert—

Examples based on the amount of credit to be provided under the agreement or the nominal amount of either £1000 or £100, showing the amount that would be payable if the debtor exercised the right under section 94 of the Act to discharge his indebtedness on the date when—

a quarter of the term of the agreement elapses;

half of the term elapses; and

three quarters of the term elapses,

or on the first repayment date after each of those dates.

A statement explaining that, in calculating the amounts shown, no account has been taken of any variation which might occur under the agreement, and that the amounts are accordingly only illustrative.

Section 17

(1) Schedule 8, Part 2 (information to be contained in documents embodying regulated modifying agreements varying or supplementing earlier hire agreements) is amended as follows.

(2) For paragraph 1 substitute—

A heading in the following form of words—“Agreement modifying a Hire Agreement and regulated by the Consumer Credit Act 1974”.

Where the credit is being secured on land the words “secured on” followed by the address of the land shall be inserted at the end of the heading.

(3) In column 2 of paragraph 10 for the words “An indication of any” substitute “A list of all”.

(4) After paragraph 10 insert—

Section 18 Transitional provision

(1) This regulation applies to documents embodying regulated agreements, and modifying agreements treated under section 82(3) of the Consumer Credit Act 1974 as regulated agreements, which have

(a) been presented, sent or made available to debtors or hirers for signature but have not become executed agreements before the coming into force of these Regulations (“transitional agreements); and

(b) become executed agreements not later than 3 months after the coming into force of these Regulations.

(2) The Consumer Credit (Agreements) Regulations 1983 as they have effect immediately before the coming into force of these Regulations shall continue to apply in relation to transitional agreements.

(3) Accordingly the amendments and repeals made by these Regulations shall not apply in respect of transitional agreements and for the purposes of section 61(1) of the Consumer Credit Act 1974 such agreements shall be properly executed if they conform to the Consumer Credit (Agreements) Regulations 1983 as they have effect immediately before the coming into force of these Regulations and otherwise comply with that subsection.