Explanatory note

These Regulations, which supersede the Consumer Credit (Total Charge for Credit) Regulations 1977, make provision for ascertaining the true cost to debtors of credit provided or to be provided under actual or prospective consumer credit agreements.

In Part II (Total Charge for Credit), they prescribe the items which are to be treated as entering into the true cost of the credit to the debtor and, in Part III (Rate of Total Charge for Credit), they provide for the calculation of the rate of the total charge as an annual percentage rate.

Part IV contains provisions dealing with assumptions which must be made for calculations in cases where relevant factors cannot be quantified at the time the calculations are to be made.

The “Consumer credit tables” (Parts 1 to 15) referred to in regulation 10 may be obtained from Her Majesty's Stationery Office or through booksellers.

The Regulations make a number of changes from the 1977 Regulations. The principal change is that certain insurance premiums are not to be included in the total charge for credit (regulation 5(1)(g) to (k)).