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Fixed sum loan agreement

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

thanks

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  • bump......
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    It's a loan agreement for a fixed amount.
  • System
    System Posts: 178,339 Community Admin
    10,000 Posts Photogenic Name Dropper
    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 :D
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • aron80
    aron80 Posts: 64 Forumite
    Can fixed sum loan agreements be converted into a personal loan?
  • halifax71
    halifax71 Posts: 213 Forumite
    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).
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