Consumer Credit Act Exempt Agreements Order 1989

The Consumer Credit Act Exempt Agreements Order 1989 is a crucial piece of legislation that affects many people and organizations in the United Kingdom. The order outlines agreements that are exempt from the requirements of the Consumer Credit Act 1974.

Under the Consumer Credit Act 1974, lenders must provide certain information, such as the total cost of credit, to borrowers before they agree to a loan. This enables borrowers to make informed decisions about whether they can afford to repay the loan, and whether it is the right option for them. However, not all credit agreements are covered by the Act.

The Consumer Credit Act Exempt Agreements Order 1989 outlines the types of credit agreements that are exempt from the Consumer Credit Act. These include:

1. Loans of more than £25,000 – these are considered to be commercial loans and are not covered by the Act.

2. Hire purchase agreements that cover goods used for business purposes – these are considered to be commercial agreements and are exempt from the Act.

3. Debts owed by businesses – these are not considered to be consumer debts and are therefore not covered by the Act.

4. Credit agreements secured on land – these are covered by the Land Registration Act 2002 and are therefore not covered by the Consumer Credit Act.

It is important to note that just because an agreement is exempt from the Consumer Credit Act, it does not mean that it is unregulated. Other laws and regulations may still apply, and borrowers should always seek appropriate advice before entering into any credit agreement.

The Consumer Credit Act Exempt Agreements Order 1989 is an important piece of legislation that helps to clarify the scope of the Consumer Credit Act. By exempting certain types of credit agreements, it helps to reduce the burden of regulation on lenders, while still protecting consumers in other ways. If you are considering taking out a loan or entering into any kind of credit agreement, it is essential that you understand your rights and obligations under the law.