Consumer Credit Exempt Agreements Order: What You Need to Know
If you`re looking to obtain credit for your business, it`s important to understand the Consumer Credit Exempt Agreements Order. This order outlines the types of loans that are exempt from the provisions set out in the Consumer Credit Act 1974, which regulates consumer credit agreements.
So, what exactly is the Consumer Credit Exempt Agreements Order? Essentially, it`s a set of rules that determine whether a particular type of loan falls outside of the regulatory provisions set out in the Consumer Credit Act. The order lists a number of different types of credit agreements that are exempt from these provisions, including:
1. Hire purchase agreements for goods or services that are worth more than £25,000.
2. Credit agreements that are secured on land or property.
3. Credit agreements that are secured on certain types of goods, such as cars or other vehicles.
It`s important to note that even if a loan falls within one of these exempt categories, it`s still important to ensure that the lender is reputable and trustworthy before entering into an agreement. Additionally, some lenders may choose to voluntarily comply with the provisions of the Consumer Credit Act, even if their loans would otherwise be exempt.
One of the main reasons for the Consumer Credit Exempt Agreements Order is to ensure that businesses are able to obtain credit more easily, without being subject to overly burdensome regulations. However, this does mean that businesses need to be particularly careful when entering into agreements that are exempt from the Consumer Credit Act.
Overall, if you`re considering taking out a loan for your business, it`s essential to understand the Consumer Credit Exempt Agreements Order. By doing so, you can ensure that you`re fully aware of your rights and obligations, and that you`re able to make an informed decision when it comes to obtaining credit.