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The Credit Unions (Maximum Interest Rate on Loans) Order 2006

S.I. 2006/1276 · Made 10 May 2006

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

INDUSTRIAL AND PROVIDENT SOCIETIES

Made 10th May 2006

Laid before Parliament 10th May 2006

Coming into force 1st June 2006

The Treasury, in exercise of the powers conferred by section 11(7) of the Credit Unions Act 1979f1, make the following Order:

Annotations to the whole text

Footnotes

f1

1979 c. 34; section 11(7) was amended by S.I.2001/2617.

Contents

  1. 1Citation and commencement
  2. 2Maximum interest rate
  3. Signature
  4. Explanatory note

1Citation and commencement

This Order may be cited as the Credit Unions (Maximum Interest Rate on Loans) Order 2006 and comes into force on 1st June 2006.

2Maximum interest rate

The rate specified for the purposes of section 11(5) of the Credit Unions Act 1979 is two per cent per month.

Signature

Gordon Brown

Dave Watts

Two of the Lords Commissioners of Her Majesty’s Treasury

10th May 2006

Explanatory note

(This note is not part of the Order)

This Order increases the limit on the interest which a credit union may charge on loans made by it. The maximum rate of interest is increased from 1% to 2% per month.

A full regulatory impact assessment of the effect that this instrument will have on the costs of business is available from the Payments and Inclusion Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ or at www.hm-treasury.gov.uk. Copies have been placed in the libraries of both Houses of Parliament.