Fixed sum loan agreement

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

Comments

gurdipR Posts: 6 Forumite _Andy_ Posts: 11,150 Forumite It's a loan agreement for a fixed amount.

System

System Posts: 178,146 Community Admin

First Post

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

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

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aron80 Posts: 64 Forumite Can fixed sum loan agreements be converted into a personal loan? halifax71 Posts: 213 Forumite 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).