Explanatory note

These Regulations exclude certain transactions (“linked transactions”) associated with consumer credit agreements and consumer hire agreements regulated by the Consumer Credit Act 1974 from the operation of sections 19(3), 69(1)(i) and (ii) and 96(1) of the Act. These sections relate respectively to the entry into effect of linked transactions, their cancellation and the discharge of the debtor's liabilities under them. The exempted linked transactions are:—

(a) contracts of insurance;

(b) other contracts in so far as they contain a guarantee of goods;

(c) transactions comprising or effected under agreements for the operation of deposit and current accounts.