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Regulation 4 Calculation of the amount of rebateI1

United Kingdom

F1(A1)

This regulation provides for the calculation of the amount of the rebate where early settlement takes place as provided in regulation 2(1A)(a) or (c) and the debtor pays the amount or sum by the time specified in regulation 5(1).

(1)

The amount of the rebate is the difference between the total amount of the repayments of credit that would fall due for payment after the settlement date if early settlement did not take place and the amount given by the following formula—

∑i=1mAi(1+r)aiminus∑j=1nBj(1+r)bj

where:

Ai

  • the amount of the ith advance of credit,

    • Bj

  • the amount of the jth repayment of credit,

    • r

  • the periodic rate equivalent of the APR/100,

    • m

  • the number of advances of credit made before the settlement date,

    • n

  • the number of repayments of credit made before the settlement date,

    • ai

  • the time between the ith advance of credit and the settlement date, expressed in periods,

    • bj

  • the time between the jth repayment of credit and the settlement date, expressed in periods, and

    • Σ represents the sum of all the terms indicated.

    (2)

    In calculating the rebate, where the creditor so elects, any repayment of credit F2not made at a time or a rate F3... provided for in the agreement F4(other than one made under section 94(3) of the Act) shall be taken to have been made at the time or rate provided for.

    F5(3)

    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    Annotations

    Textual amendments

    F1

    Reg. 4(A1) inserted (1.2.2011) by The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 81(a), 99(1) (with regs. 100, 101)

    F2

    Word in reg. 4(2) inserted (1.2.2011) by The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 81(b)(i), 99(1) (with regs. 100, 101)

    F3

    Words in reg. 4(2) omitted (1.2.2011) by virtue of The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 81(b)(ii), 99(1) (with regs. 100, 101)

    F4

    Words in reg. 4(2) inserted (1.2.2011) by The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 81(b)(iii), 99(1) (with regs. 100, 101)

    F5

    Reg. 4(3) omitted (1.2.2011) by virtue of The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 81(c), 99(1) (with regs. 100, 101)

    Commencement

    I1

    Reg. 4 in force at 31.5.2005, see reg. 1(1)