What came before CCA 74?

[andrew1]

Can anyone tell me the regulatory Act which regulated Moneylending before the CCA came into operation in '74 and point me to the Act itself?

 

 

Thanks

 

 

A1

[ims21]

A possible starting point for your research

 

http://en.wikipedia.org/wiki/Consumer_Credit_Act_1974

[andrew1]

Thanks, there's some reading in there isn't there once you start digging LOL?

 

I just wanted to know if a lender needed a licence to lend money before the '74 Act came into action. It seems from the links that they may not have needed to register at some later date under the Moneylending Act 1927, but there's so much that's gone into the changes to the whole Consumer Credit arena it's going to take ages to find. I'll plod through, but if someone knows before I get too deep then I'll be grateful for the assistance.

 

Thanks ims21, much appreciated

[ims21]

Yes others may have input but History was never my strong point

[andrew1]

Okay, here's another one:

 

If you have a 1st charge unregulated loan taken out in Sept 2004 just before FSMA kicked in on 31/10/04 then I know it's unregulated full stop. s.16 exempts. No events since would have turned this into an RMC through variation or modification like arrears capitalisations or f/adv's.

 

But, if that loan had a £1300 PPI added at the same time in Sept 2004 would that, as a separate amount of credit under the 25k limit, kick the whole thing into being CCA regulated?

 

At the time the loan was taken this would be a 1st charge so people would say it becomes RMC, but this is fine tuning. The mtg loan comes first and secured on the property, then comes the PPI, it might only be minutes, but that's the sequence. As a separate financial arrangement/accommodation the PPI is a separate loan, not a cost of credit but credit itself as it is added to the loan amount applied for and interest charged upon it over the term of the loan itself. So that ought to be CCA regulated as such.

 

I want to know if that PPI sum at that time before RMC's arrived would have kicked the whole thing, loan as well into CCA regulation where it would remain until cleared?

 

That'll get you thinking....

 

Cheers

 

A1

[andrew1]

..anyone any thoughts on the above?

[Nightmare4banks]

Hi All!

 

Andrew1,

 

In reply to your posts and in my view:

 

 

1.The applicable Act of Parliament is the Consumer Act 2006.

2.Also,in your particular case your agreement would become CCA regulated.

 

You should hopefully find the information through this link useful too:

 

 

 

http://www.legislation.gov.uk/ukpga/2006/14/contents

 

 

All the best! Keep us posted!

[andrew1]

Okay, then let's look at the equation again as in 2004 2006 is just a pipe dream.

 

Unregulated loan in 2004 as it's over the financial limits of the CCA at the time the loan was provided and is also a 1st charge loan exempting it from CCA regulation anyway. The PPI added of £1300 to this loan balance is a separate financial accomodation - it is not a part of the 1st charge loan.

 

Does that then make the £1300 in 2004 (even if it changed in 2006 when the new CCA come into practice) a CCA regulated loan rather than being consolidated into the overall 1st charge loan?

[Nightmare4banks]

Andrew1,

 

In reply to your last post and in my view:

 

I gather from my reading into this particular statute the fact that many more loan agreements would automatically end up becoming CCA regulated.

 

However,I will need to double check regarding your particular scenario and get back to you.