Russell Kelsall

This Practice Note considers the various cancellation and withdrawal rights that are available in relation to credit agreements and consumer hire agreements that are regulated by the Consumer Credit Act 1974 (CCA 1974). In both cases, it is assumed such agreements are not secured on land, or used to help buy land.

This Practice Note, produced in partnership with Russell Kelsall of TLT LLP and Caroline Castle of Pinsent Masons, looks at how the Financial Conduct Authority regulates consumer credit licences, which consumer credit activities are covered, what activities insolvency practitioners or office-holders may need a consumer credit license for, what interim permission is, which exemptions are relevant plus practical points to consider.

This Q&A sets out whether there have been any proposals to change the provisions in the Consumer Credit Act 1974 (CCA 1974) (CCA 1974, ss 86B and 86C) which require (in broad terms) a lender to give a notice of sums in arrears when the customer’s arrears meet certain thresholds. This Q&A is answered in light of the finalised temporary guidance issued by the Financial Conduct Authority which says customers, if they have a coronavirus (COVID-19) related payment holiday, should not be treated as being ‘in arrears’.

This Q&A considers whether a customer under a regulated credit card agreement must pay a debt which has been assigned to a debt purchaser where the agreement does not allow assignment.

This Q&A sets out whether the CCA requires (or ever required) notice to be given to a customer under a credit agreement regulated by the CCA and secured on land (a secured regulated agreement) before the rate of interest could be varied.

This Q&A sets out whether a borrower can make use of the time order provisions in sections 129 and 135 of the Consumer Credit Act 1974 (the CCA) where the borrower’s agreement (which was secured on land) was, until the implementation of the MCD, regulated by the CCA and is now is subject to the MCOB.

This Q&A considers the effect of section 82(3) of the Consumer Credit Act 1974.

This Q&A considers key legal issues for where an individual guarantor is giving a personal guarantee for a law firm consumer client’s fees, including whether the guarantee is a regulated credit agreement and the application of the CRA 2015.

This Q&A sets out the key legal issues to consider when lending money to friends where no security is provided.

This Q&A considers whether a modifying or new agreement is required where a lender agrees to extend the term over which a Regulated Consumer Credit Agreement is to be paid by way of forbearance.

This Q&A considers whether it is permissible to have joint bank accounts for up to five users.

This Q&A considers the implications of the measures confirmed by the FCA to help people with some of additional consumer credit and consumer hire products relating to motor finance, high-cost short-term credit, rent-to-own, fixed-sum credit BNPL and pawnbroking agreements

This Q&A looks at the package of targeted temporary measures as confirmed by the FCA and considers the implications of said measures.

This Q&A considers whether a lender is required to keep sending subsequent notices of sums in arrears under section 86B(5)(b) of the Consumer Credit Act 1974 (CCA 1974), they are required to send notices of sums in arrears on a fixed sum loan under CCA 1974, s 86B and the customer clears the arrears but leaves default sums outstanding, is the lender.

This Q&A considers whether a communication to existing shareholders of a private company limited by shares asking them to pass a resolution to disapply rights of pre-emption so that shares in the capital of the company can be issued to a new investor constitute ‘investment activity‘ for the purposes of FSMA 2000 and the financial promotions regime.