Credit Contracts and Consumer Finance Act 2003

54 Creditor’s loss arising from full prepayment

(1)

A creditor must calculate a reasonable estimate of its loss arising from a full prepayment using—

(a)

a procedure prescribed for the purposes of this section by regulations; or

(b)

an appropriate procedure set out in the consumer credit contract for calculating that loss.

(2)

If a creditor uses a procedure prescribed for the purposes of this section by regulations, the amount calculated is to be treated in any court and in any proceedings under this Act as a reasonable estimate of the creditor’s loss.