Trading cheque or voucherThe legal positionSpecial featuresChecklist for actionFinance companies may supply a voucher or cheque to the client to be used at specified shops in exchange for goods. Repayments, which include a charge for the credit, are then made by instalments to the finance company. The shop is paid by the credit company.The legal positionThese agreements are regulated credit agreements, 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). 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). If the voucher is for £50 or less, the creditor is not obliged to comply with the rules on here.1ss14 and 17 CCA 1974 1 ss14 and 17 CCA 1974 » Special featuresThis is normally an expensive way of borrowing and limits the client to shopping in a limited number of outlets where prices may be high. Checklist for actionAdvisers 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 usually a non-priority debt. If this is the only way the client can buy essential goods, see here.