Section 423A(3)

This subsection applies to the following agreements— an agreement under which the creditor— contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the future sale of a residential immovable property or a right relating to residential immovable property, and will not seek repayment of the credit until the occurrence of one or more specified life events of the consumer, unless the consumer breaches contractual obligations so as to allow the creditor to terminate the agreement; an agreement under which credit is granted by an employer to its employees as a secondary activity where the agreement is offered free of interest or at an annual rate lower than that prevailing on the market and not offered to the public generally; an agreement under which credit is granted free of interest and without any other charges except those that recover costs directly related to the securing of the credit; an agreement in the form of an overdraft facility under which the credit has to be repaid within one month; an agreement which is the outcome of a settlement reached in or before a court or other statutory authority; an agreement which— relates to the deferred payment, free of charge, of an existing debt, and is not secured by a mortgage, by another comparable security commonly used in the United Kingdom on residential immovable property or by a right related to residential immovable property.

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Source: legislation.gov.uk · retrieved 2026-09-04