Q&As

If a Consumer Credit Act 1974 (CCA 1974) secured loan is modified post 31 October 2004, will it become a regulated mortgage contract? Will the original CCA 1974 agreement be of any effect?

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Produced in partnership with Russell Kelsall of Walker Morris
Published on: 24 July 2020
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The changes to the consumer credit framework

The position with secured lending has been significantly complicated by the UK’s implementation of Directive 2014/17/EU, the EU Mortgage Credit Directive (MCD), on 21 March 2016. Before the MCD was implemented, the UK broadly had two regimes: a regulated mortgage contract regime and a regulated credit agreement regime. The regulated mortgage contract regime was (in broad terms) limited to lending secured on the borrower’s home by a first legal charge. The two regimes were, and are, mutually exclusive.

But to implement the MCD, HM Treasury made the Mortgage Credit Directive Order 2015 (MCDO 2015), SI 2015/910, and made changes to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO 2001), SI 2001/544. MCDO 2015, SI 2015/910 effectively transferred the majority of regulated credit agreements secured on land (so long as they fell into the definition

Russell Kelsall
Russell Kelsall

Solicitor, Partner, Walker Morris

Russell is a Partner at Walker Morris LLP and its Head of Consumer & Motor Finance. He leads an experienced team of non-contentious and contentious lawyers specialising in consumer, motor and asset finance. He has market-leading expertise in regulated financial products with a particular specialism in consumer credit, mortgages, payment services and savings. He is often instructed to advise on sensitive regulatory issues, including interactions with the Financial Conduct Authority and the Financial Ombudsman Service. 

Russell is the author of 'Consumer Credit: Law, Practice and Precedents', an editor of 'Goode: Consumer Credit Law and Practice', 'Goode: Consumer Credit Reports', ‘Butterworths Financial Regulation Service’ (on CONC, MCOB and BCOBS), ‘Asset and Project Finance’ (on equipment leasing) and ‘Practical Lending and Security Precedents’ (on debentures). 

Industry guides describe him as an "expert in the industry who knows exactly what to do in any given situation", being "very clued-up and able to give advice in a succinct, practical way”, having an "in-depth knowledge of the Consumer Credit Act", being "very competent in the consumer finance area" and being a "shockingly clever consumer credit expert".

Russell is retained by the Finance & Leasing Association to provide training to its members and has recently (a) advised the FLA on its lobbying of HM Treasury for changes to the regulation of consumer credit (including the need for emergency legislation) and (b) been instructed by the FLA to review best practice guidance for the industry.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Consumer definition
What does Consumer mean?

A consumer is a person acting outside the context of a trade, business or profession, but the definition takes different meanings depending on the context in which it is used. Therefore it is important to check the relevant law or regulation such as the Consumer Rights Act 2015 (CRA 2015), the Unfair Contract Terms Act 1977, the Sale of Goods Act 1979.

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