Section 13 Interest on default sumsI1

After section 86E of the 1974 Act (inserted by section 12 of this Act) insert—

“Interest on default sums

86F

(1)

This section applies where a default sum becomes payable under a regulated agreement by the debtor or hirer.

(2)

The debtor or hirer shall only be liable to pay interest in connection with the default sum if the interest is simple interest.”