"Restricted use credit agreement"

[la2006]

This is a general question as i'm just trying to find as much legal information concerning "restricted use credit agreements". and how they are regulated

 

Example - Career development loan

 

Does the credit company has the same contractual (joint) liabilty as the training company, as the loan can only been used for training which is stated in the contract.

 

Any insight would be a great help.

[saintly_1]

Sorry your post has gone unanswered but I'm sure someone will be along soon who can advise you

 

 

 

saint

[pt2537]

Hi there

 

 

can you expand on this a little on your problem and we will no doubt be able to help

 

Restricted-use and unrestricted-use credit.

The Consumer Credit Act 1974 creates a distinction between two types of regulated agreement1, based upon the purpose for

which the credit2 supplied under the agreement is available.

A 'restricted-use credit agreement' is a regulated consumer credit agreement3 (1) to finance4 a transaction between the debtor5

and the creditor6, whether forming part of that agreement or not7; or (2) to finance a transaction between the debtor and a

person (the 'supplier') other than the creditor8; or (3) to refinance any existing indebtedness of the debtor, whether to the

creditor or another person9.

An 'unrestricted-use credit agreement' is a regulated consumer credit agreement which is not within the definition of a

restricted-use credit agreement10.

An agreement is not a restricted-use credit agreement if in fact the credit is provided in such a way as to leave the debtor free

to use it as he chooses, even though certain uses would contravene that or any other agreement11.

 

 

i hope the above answers a small part of your question

[la2006]

Hi there

 

 

can you expand on this a little on your problem and we will no doubt be able to help

 

 

 

Link to the problem

 

http://www.consumeractiongroup.co.uk/forum/barclays-bank/134149-career-development-loans-wit.html#post1414667