Fixed sum loan agreement

camper_1982

What does this actually mean? Where can i find a definition for it?

thanks

gurdipR

bump......

_Andy_

It's a loan agreement for a fixed amount.

System

Hi

Section 10(1)(b) of the Consumer Credit Act 1974, here:

http://www.fisa.co.uk/downloads/CCA%201974.pdf

Enter 'fixed' in the search box for terms relating to fixed sum agreements.

Regards
UNDERGROUND

aron80

Can fixed sum loan agreements be converted into a personal loan?

halifax71

aron80 wrote: »

Can fixed sum loan agreements be converted into a personal loan?

A fixed sum credit is for a fixed amount rather than running account credit wherby you are afforded a certain level of credit (i.e. trade account).

Can't see what your question is asking. A £5k personal loan for example would be a fixed sum credit agreement.

To quote from the attachment: -

10.—(1) For the purposes of this Act—
(a) running-account credit is a facility under a personal credit agreement whereby the debtor is enabled to receive from time to time (whether in his own person, or by another person) from the creditor or a third party cash, goods and services (or any of them) to an amount or value such that, taking into account payments made by or to the credit of the debtor, the credit limit (if any) is not at any time exceeded; and
(b) fixed-sum credit is any other facility under a personal credit agreement whereby the debtor is enabled to receive credit (whether in one amount or by instalments).