Debtor-Creditor Agreement in United Kingdom

Definition of Debtor-Creditor Agreement

In accordance with the work A Dictionary of Law, this is a description of Debtor-Creditor Agreement : A *consumer-credit agreement regulated by the Consumer Credit Act 1974. It may be (1) a *restricted-use credit agreement to finance a transaction between the debtor and a supplier in which there are no arrangements between the creditor and the supplier (e.g. when a loan is paid by the creditor direct to a dealer who is to supply the debtor); (2) a restricted-use credit agreement to refinance any existing indebtedness of the debtor’s to the creditor or any other person; or (3) an unrestricted-use credit agreement (e.g. a straight loan of money) that is not made by the creditor under arrangements with a supplier in the knowledge that the credit is to be used to finance a transaction between the debtor and the supplier.