Section 10(3)

For the purposes of any provision of this Act that specifies an amount of credit (except section 17(1)(a)) , running-account credit shall be taken not to exceed the amount specified in that provision( “the specified amount ”) if— the credit limit does not exceed the specified amount; or whether or not there is a credit limit, and if there is, notwithstanding that it exceeds the specified amount,— the debtor is not enabled to draw at any one time an amount which, so far as (having regard to section 9(4)) it represents credit, exceeds the specified amount, or the agreement provides that, if the debit balance rises above a given amount (not exceeding the specified amount), the rate of the total charge for credit increases or any other condition favouring the creditor or his associate comes into operation, or at the time the agreement is made it is probable, having regard to the terms of the agreement and any other relevant considerations, that the debit balance will not at any time rise above the specified amount.

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Source: legislation.gov.uk · retrieved 2026-07-30