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Hi all, this is my first post so please be gentle with me 
Is anyone familiar with the N Rock loans case which has now gone to appeal? In that case, N Rock dished out CCA regulated loans on standard regulated paperwork regardless of the fact that many of the loans exceeded the then £25k ceiling.
In court it was decided that as the loans exceeded the statutory limit they could never be regulated regardless of the documents used. However, the judge also determined that even though they were not regulated, certain requirements (such as the requirement to provide regular statements in the prescribed form) were imported into the agreement and that the Creditor's compliance was necessary to enforce.
This particular issue is now at appeal and the outcome will be interesting to say the least.
My question is, if the original agreement (entered into by both parties as regulated) is now considered unregulated, how does that affect any further advances made under the same terms as the original agreement and which were themselves under the limit when advanced?
eg
1. Original loan for £30k (executed as a regulated agreement) is now deemed to be unregulated due to it exceeding the statutory limit but with certain statutory requirements being imported
2. 12 months later, the borrower makes an application for a further advance for £10k which is approved "on the same terms" as the original agreement and is advanced by way of an increase in the credit limit to be drawn down using credit card cheques when required
What is the regulated/unregulated status of the £10k further advance given that it is after all another loan but this time under the CCA ceiling?
Does anyone have a view on this please? I have asked elsewhere but nobody seems to be able to come to terms with it
Thanks in advance for any input
Is anyone familiar with the N Rock loans case which has now gone to appeal? In that case, N Rock dished out CCA regulated loans on standard regulated paperwork regardless of the fact that many of the loans exceeded the then £25k ceiling.
In court it was decided that as the loans exceeded the statutory limit they could never be regulated regardless of the documents used. However, the judge also determined that even though they were not regulated, certain requirements (such as the requirement to provide regular statements in the prescribed form) were imported into the agreement and that the Creditor's compliance was necessary to enforce.
This particular issue is now at appeal and the outcome will be interesting to say the least.
My question is, if the original agreement (entered into by both parties as regulated) is now considered unregulated, how does that affect any further advances made under the same terms as the original agreement and which were themselves under the limit when advanced?
eg
1. Original loan for £30k (executed as a regulated agreement) is now deemed to be unregulated due to it exceeding the statutory limit but with certain statutory requirements being imported
2. 12 months later, the borrower makes an application for a further advance for £10k which is approved "on the same terms" as the original agreement and is advanced by way of an increase in the credit limit to be drawn down using credit card cheques when required
What is the regulated/unregulated status of the £10k further advance given that it is after all another loan but this time under the CCA ceiling?
Does anyone have a view on this please? I have asked elsewhere but nobody seems to be able to come to terms with it
Thanks in advance for any input
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