Cca Exempt Agreements

(b) certain agreements for which the number of payments to be made by the debtor does not exceed the number indicated (Article 3); This regulation consolidates consumer credit contracts (No. 2) as amended, which provides for the exemption of certain consumer credit and consumer leasing contracts for the purposes of the Consumer Credit Act 1974. In this case, all parties to the credit agreement, including the lender`s employee, were aware that the borrower was providing funds for his son-in-law`s operations and not for the borrower`s operations. As a result, the exemption for commercial purposes did not apply and the credit contract was governed by the CCA. However, the presumption does not apply where the lender (or anyone acting on behalf of the lender) knows or has legitimate reason to believe that the credit contract was not entered into entirely or primarily for the purposes of a borrower who has been or is designated by the lender. In these circumstances, the burden on the lender is to prove that the exemption from the commercial objective applies. (3) Paragraph 1, point a), applies to agreements. (i) the creditor is the creditor under an agreement guaranteed by a mortgage on that land, either an agreement exempt from Section 16, paragraph 1, the Act or Article 2, or a personal credit contract which, under one of these provisions, would be exempt if the credit granted does not exceed USD 15,000; The facts of the above case are not unusual: the borrower entered into a credit contract for a loan of $64,000, which can be repaid in six months to assist his son-in-law in his case. The lender wishing to grant unregulated loans provided the borrower with a credit contract that claimed to be exempt from regulation under the Consumer Credit Act of 1974 (CCA) [2] because it was intended for commercial purposes and exceeded $25,000. The borrower signed the credit agreement, which contained a commercial assignment statement, and the funds were transferred to the son-in-law.

2. Subject to paragraph 3 below, paragraph 1, point a), does not apply to agreements providing for an increase or amount for a property or allowing the creditor to increase the rate or amount of a position that initially resulted in a judgment. However, the borrower appealed that the credit contract is not exempt because it is not intended for commercial purposes and does not meet the CCA`s form and content requirements. Failure to comply with the CCA meant that the agreement could only be implemented by a court decision that the lender had not requested. Article 60C, paragraph 2 (the regulated mortgage contract is a tax-exempt credit contract, as summarized in PERG 2.7.19CG (1); (c) collateral agreements (with other seizures of ownership documents or bearer bonds). The decision provides that the following consumer credit contracts are exempt: Article 3, paragraph 1, point (a) (i), amends the old regulation on the exemption of repayable agreements with a maximum of 4 payments over a maximum period of 12 months from the date of the agreement and makes this provision compliant with the Council`s Directive 87/102/EEC (O.J. L42, 12.2.1987, P42). 4.

Paragraph 1 does not apply to agreements under which the total amount of credit made available by the debtor for the repayment of his debt has been applied, according to the formula specified in the agreement, which relates to the evolution of an index level or other factor.