Regulation 4 Calculation of the amount of rebate

(A1) This regulation provides for the calculation of the amount of the rebate where early settlement takes place as provided in regulation 2(1A)(a) or (c) and the debtor pays the amount or sum by the time specified in regulation 5(1).

(1) The amount of the rebate is the difference between the total amount of the repayments of credit that would fall due for payment after the settlement date if early settlement did not take place and the amount given by the following formula -

where:

A_i = the amount of the ith advance of credit,

B_j = the amount of the jth repayment of credit,

r = the periodic rate equivalent of the APR/100,

m = the number of advances of credit made before the settlement date,

n = the number of repayments of credit made before the settlement date,

a_i = the time between the ith advance of credit and the settlement date, expressed in periods,

b_j = the time between the jth repayment of credit and the settlement date, expressed in periods, and

∑ represents the sum of all t

…