What does that mean ?
FCA
High-cost short-term credit is proposed to be a definition in the Glossary of the
Handbook:
I'm guessing they just mean P2P as it is the only mention of P2P6 in the entire FCA consultation document
FCA
High-cost short-term credit is proposed to be a definition in the Glossary of the
Handbook:
‘a regulated credit agreement:
• which is a borrower-lender agreement or a P2P6 agreement;
• in relation to which the APR is equal to or exceeds 100%;
either:
i. in relation to which a financial promotion indicates (by express words or
otherwise) that the credit is to be provided for any period up to a maximum
of 12 months or otherwise indicates (by express words or otherwise) that
the credit is to be provided for a short term; or
ii. under which the credit is due to be repaid or substantially repaid within a
maximum of 12 months of the date on which the credit is advanced;
• which is not secured by a mortgage, charge or pledge; and
which is not a home credit loan agreement, a bill of sale loan agreement or a
borrower-lender agreement enabling a borrower to overdraw on a current account
or arising where the holder of a current account overdraws on the account without
a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.’
• which is a borrower-lender agreement or a P2P6 agreement;
• in relation to which the APR is equal to or exceeds 100%;
either:
i. in relation to which a financial promotion indicates (by express words or
otherwise) that the credit is to be provided for any period up to a maximum
of 12 months or otherwise indicates (by express words or otherwise) that
the credit is to be provided for a short term; or
ii. under which the credit is due to be repaid or substantially repaid within a
maximum of 12 months of the date on which the credit is advanced;
• which is not secured by a mortgage, charge or pledge; and
which is not a home credit loan agreement, a bill of sale loan agreement or a
borrower-lender agreement enabling a borrower to overdraw on a current account
or arising where the holder of a current account overdraws on the account without
a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.’
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