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JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11549
Experience:  30 years as a practising solicitor.
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When is a loan made to an individual not governed by the C

Resolved Question:

When is a loan made to an individual not governed by the CCA?
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.
The following kinds of agreement are not covered by the Consumer Credit Act:
agreements to hire gas, electricity or water meters
agreements where you have to pay off what you owe in full each time, for example, charge cards or milk bills
mortgages
credit union loans
loans from an employer
some short term trade agreements.
A Green Deal Plan which provides credit of:
up to £25,000 which is wholly for business purposes or
over £25,000 which is predominantly for business purposes.
Your rights for these agreements will only depend on what is written in the contract, not on what is in the Consumer Credit Act.
I hope this helps. Please leave a positive response so that I am credited for my time.
Expert:  JGM replied 3 years ago.
Certain other types of loan do not fall within the ambit of the Consumer Credit Act 1974. They are called Exempt Agreements. The details are as follows.
The purpose of the Consumer Credit Act 1974 is to regulate consumer rather than commercial transactions. In general, an agreement will only be regulated if the debtor is an individual (which will include partnerships but not limited companies) and the credit does not exceed £25,000.
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