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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

high-cost short-term credit

    34a regulated credit agreement :

      1. (a) which is a borrower-lender agreement or a P2P agreement;
      1. (b) in relation to which the APR is equal to or exceeds 100%;
      1. (c) either:
        1. (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
        1. (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;
      1. (d) which is not secured by a mortgage, charge or pledge; and
      1. (e) which is not:
        1. (i) a credit agreement in relation to which the lender is a community finance organisation; or
        1. (ii) 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.