Regulation 11 Interest

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

reg. 11(1) words substituted by Consumer Credit (EU Directive) 2010 reg. 93
reg. 11(1) words substituted by Financial Services and Markets Act 2000 (Regulated Activities) 2013 Sch. para. 34(a)
reg. 11(2) words substituted by Financial Services and Markets Act 2000 (Regulated Activities) 2013 Sch. para. 34(b)

(1)

Subject to paragraph (2), loans must bear interest from the date on which they are applied by the Scottish Ministers in accordance with regulation 10 at the rate which will result in an annual percentage rate of charge determined in accordance with the Consumer Credit (Total Charge for Credit) Regulations 1980^f1 equal to the percentage increase between the retail prices all items index published by the Office for National Statistics for the month of March immediately preceding the month in which the loan is applied by the Scottish Ministers in accordance with regulation 10 and that index so published for the previous March.

(2)

If the rate referred to in paragraph (1) exceeds the rate for the time being specified for the purposes of any exemption conferred by virtue of section 16(5)(b) of the Consumer Credit Act 1974^f2 loans shall bear interest at the rate so specified.

(3)

Interest is calculated on the principal outstanding daily, and is added to the principal monthly.

Annotations

Footnotes

f1: S.I. 1980/51, amended by S.I. 1999/3177.
f2: 1974 c. 39.