(i) the creditor is the creditor under an agreement guaranteed by a land mortgage on that land, which is either an agreement exempted under section 16(1) of the Act, or article 2, or a personal credit contract which, under one of these provisions, would be a tax-exempt agreement if the credit granted does not exceed $15,000; (3) Paragraph 1, point a), applies to agreements – b) agreements that are conditional sales or lease-sale contracts; and the regulation provides that the following consumer credit contracts are exempt:: This case serves as a warning to all lenders and sets out a clear scope for invoking the commercial exemption: the credit contract must apply to loans over $25,000 and be concluded entirely or primarily for the purposes of the borrower`s activity. If strict compliance is not demonstrated, it may result in a credit contract not applicable (at least temporarily). 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. (b) certain agreements for which the number of payments to be made by the debtor does not exceed the number indicated (Article 3); (c) agreements guaranteed by collateral (with other seizures of ownership documents or bearer bonds). A business return (which must meet the requirements of the FCA`s consumer credit portfolio) must assist lenders in fulfilling the burden of proof, whether or not a credit contract is tax-exempt. The inclusion of a compliant statement assumes that the agreement was entered into in whole or largely for the purpose of a transaction that is or is to be pursued by the borrower. The exemption from commercial purposes is an important provision under the Consumer Credit Act, which many lenders wish to rely on to lend to individuals. Not surprisingly, it is essential to strictly comply with the exemption requirements, as was pointed out in a recent case [1].
(c) certain agreements for which the total commission interest rate on loans is an interest rate that does not exceed the highest base rate of banks, plus a percentage or 13% (according to Article 4); (d) certain agreements that have a connection to a country outside the United Kingdom or that are concluded between a U.S. Federal Credit Union and certain persons with ties to U.S. forces (Article 5). For more information on the topics covered in this practical note, as well as detailed comments on the exceptions available under the ROE, see Goode: Consumer Credit Law and Practice > Division I Commentary > Part IC Consumer Credit Legislation > 26 non-smoking agreements.