The Tribunal found that the loan contracts, as well as the wider range of pre-contract and contractual documents, were repeatedly recalled that the loan was regulated by the CCA and that the borrower would benefit from the rights available under the CCA and related rules. Mark Lloyd, Director of Compliance at Magnitude Finance, said: “An increasing number of people are coming to help us because their self-funder didn`t tell them about exit fees and didn`t even offer the choice of regulated financing.” Clients should have a choice between regulated and unregulated financing arrangements, both options being clearly explained from the outset. This included, as of October 1, 2008, regular S77A CCA (s77A) returns for regulated fixed credit agreements concluded before and after that date. The applicant submitted s77A statements on regulated and unregulated agreements. The company also warned people to ensure that they are asked to sign a business exclusion if they are not business users, as it is the many financial companies that do not follow the rules. You can settle the contract at any time if the balance is in default, including balloon payments (if any) paid to the lender. The lender may give the customer a discount on the remaining interest on the agreement. However, if the contract is governed by the Consumer Credit Act, the minimum rebate is set by law. The lease-sale or lease-leases are the same, the difference being that the purchase in leasing can offer lower monthly payments by incorporating a final payment (sometimes called balloon payment).

This is a larger payment due at the end of the lease. The objective of this figure is to reduce monthly payments compared to regular rents. The contract is either regulated or unregulated under the Consumer Credit Act. An exempt agreement is an agreement that would normally be regulated, but which falls under one of the exceptions. The client does not receive the same level of protection as if the agreement were regulated, but he nevertheless enjoys some protection in accordance with the unfair relations provisions contained in sections 140A to 140C of the Consumer Credit Act 1974. “Unregulated agreements play a role, but people need to be able to make informed decisions.