Consumer Credit Act and credit cards

are you referring to the limit for join liability?

That is a per 'purchase' or per 'item' limit (forget which), the total available credit on the card is irrelevent.

tim

In message , tim writes

No, hes talking abut the consumer credit act limit for regulated agreements.

In message , James writes

It means that the agreement does not have to be a Consumer Credit Act regulated agreement.

Yes.

No, the lender is a UK company.

Loads.

CCA regulated agreements are aimed to protect the financially naive, hence the limit of £25k.

When I looked last week, they still stated 50K on their website (in a FAQ) ...

"tim" wrote

Isn't that limit actually *30K* ?

"john boyle" wrote

Someone I know has a credit card with a limit of over 25K. I just looked at their Terms&Conditions for the card - and it says at the top "CREDIT CARD AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974".

So, does the CCA basically say "all credit below 25K must be regulated by CCA" rather than "all credit above 25K will not be regulated by CCA" ?

Also, the case of credit cards seems a little unusual, doesn't it? I mean, should a card with a limit of 24.9K, where the user spends over the limit up to 25.1K (incurring one of those "fines"!) be covered by CCA whereas someone with a limit of 26K who only spends less than (say) 15K not be covered?

I gather it's simply the case that a credit agreement either is or is not regulated. Once made, it cannot simply change status. It may only be set up as non-regulated if the initial advance exceeds £25k (or if it's not a "consumer" agreement -- so if I lend you a fiver so you can buy me a pint, and I charge you 5% interest per day or part thereof, compounding daily at noon, that'd be a private arrangement not subject to CCA; yum, a quarter of a billion in one year, not bad, I think I'll become a loan shark).

Thus allowing the balance of a regulated agreement to build up to and creep above £25k will not allow the agreement to escape regulation.

"Ronald Raygun" wrote

OK - so in that case, I guess that *all* credit cards must, of necessity, be regulated - because the initial balance is always *zero* ? [Even if the initial limit is 50,000!]