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Debt Advice Handbook 14th edition

Budget account
A budget account is a type of revolving credit (see here) provided by shops. The client can spend up to an agreed credit limit and makes regular repayments.
The legal position
This type of account is a regulated credit agreement, provided the credit is for no more than £25,000 (if the agreement was made before 6 April 2008) or £15,000 (if made before 1 May 1998).1s8 CCA 1974 If the agreement was made on or after 6 April 2008, the agreement is regulated regardless of the amount, unless it is exempt (see here).
 
1     s8 CCA 1974 »
Special features
Many large stores offer budget account facilities, which – by requiring clients to pay a monthly amount even when they have not recently purchased anything – can be a powerful incentive to continue shopping at that store. Instant credit is often available, including interest-free credit (see here) on larger purchases.
These debts are non-priority debts (see Chapter 9).
Checklist for action
Advisers should take the following action.
    Check liability, including the enforceability of the agreement under the Consumer Credit Act 1974.
    Assist the client to choose a strategy from Chapter 9, as this is a non-priority debt.