Q&As

A family member is looking to loan a sum of money to another family member. The loan will be interest bearing and will not be secured. Would this loan fall within the consumer credit regime?

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Published on LexisPSL on 02/09/2019

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • A family member is looking to loan a sum of money to another family member. The loan will be interest bearing and will not be secured. Would this loan fall within the consumer credit regime?

There are several factors to consider when deciding whether or not a consumer credit agreement is regulated by the Consumer Credit Act 1974 (CCA 1974). CCA 1974, s 8(1) defines a consumer credit agreement as ‘an agreement between an individual (“the debtor”) and any other person (“the creditor”) by which the creditor provides the debtor with credit of any amount’. According to CCA 1974, s 8(3), a consumer credit agreement is a regulated credit agreement within the meaning of CCA 1974 if it is a regulated credit agreement for the purposes of Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), SI 2001/544, Pt II, Chapter 1

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