Q&As

A Pension Scheme for a business comprising personal and corporate Trustees are proposing to enter into a hire purchase lease with a sole trader company for business purposes in relation to an asset worth approximately £30,000. Title is to pass of the asset concerned to the Lessee when the final payment has been made. Will this arrangement be regulated by the Consumer Credit Act?

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Published on LexisPSL on 02/12/2015

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

  • A Pension Scheme for a business comprising personal and corporate Trustees are proposing to enter into a hire purchase lease with a sole trader company for business purposes in relation to an asset worth approximately £30,000. Title is to pass of the asset concerned to the Lessee when the final payment has been made. Will this arrangement be regulated by the Consumer Credit Act?
  • The regulation of consumer credit
  • Regulated activities and consumer credit agreements
  • Q: Does this loan fall under the scope of the Consumer Credit Act? and if so what are the implications of this?

The regulation of consumer credit

Regulation of consumer credit now sits with the Financial Conduct Authority (FCA). In consequence parts of the Consumer Credit Act 1974 (CCA 1974) were repealed from 1 April 2014 with regulated activities coming under the Financial Services and Markets Act 2000 (FSMA 2000) and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) (RAO 2001).

Regulated activities and consumer credit agreements

Entering into a regulated credit agreement as a lender is a specified (regulated) kind of activity unless it is an exempt agreement under Articles

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