12. Early repayment rules under the Consumer Credit Act

CPAG

12. Early repayment rules under the Consumer Credit Act

A client can decide to pay off a regulated credit agreement early, in full or partially, after it is in place.1s94 CCA 1974 There is a formula to ensure that creditors can recoup costs associated with setting up an agreement; therefore, a lower percentage rebate is given for settlement during the earliest parts of a credit agreement.2The Consumer Credit (Early Settlement) Regulations 2004 No.1483

If a client requests a settlement figure from the creditor for a regulated credit agreement, the creditor must provide a statement of the amount required to settle the agreement, together with details of how the amount is calculated. They should reply to the client within seven days. The creditor must set the settlement repayment date 28 days after the request was made, to give the client time to consider and pay the early settlement figure.3s94 CCA 1974 The figure is the sum the client owes plus the interest owed less the statutory interest rebate they must apply.

1 s94 CCA 1974 »

2 The Consumer Credit (Early Settlement) Regulations 2004 No.1483 »

3 s94 CCA 1974 »

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Debt Advice Handbook Scotland 1st ed - with new material

Written in partnership with Citizens Advice Scotland, CPAG is delighted to announce the first edition of the Debt Advice Handbook Scotland. Based on CPAG’s best-selling Debt Advice Handbook, it details the stages of the debt advice process in Scotland and the key skills needed to give good advice. No money adviser should be without this essential guide.

The Handbook provides the most comprehensive information needed by advisers on the tools and strategies to help clients with their financial difficulties. It details the key stages of money advice, including on interviewing clients, establishing liability, prioritising debts, preparing a financial statement, negotiating with creditors and dealing with bailiffs. Emphasis is placed on taking due care of vulnerable clients and making sure that any payment arrangements agreed are appropriate. There is a focus on sustainable credit arrangements that do not affect a client’s abilities to pay essential living expenses and priority debts.

It is the go-to tool for specialist debt adviser as a first step in accessing primary legislation and regulations, and is also a reliable guide and training aid for the new debt adviser. Advisers who undertake debt advice alongside other sorts of advice work or other professional disciplines – such as social workers and housing officers – will find this handbook an indispensable resource.

Fully indexed and cross referenced to law, official guidance and to court and tribunal decisions, tactical guidance and examples are included throughou

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This content was last updated:2024-10-22

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