Regulation 1(2)

1. Assumptions about running-account credit

(a) In the case of an agreement for running-account credit, the assumption in paragraph (b) below shall have effect for the purpose of calculating the total charge for credit and any APR in place of the assumption in the total charge for credit rules that might otherwise apply.

(b) In a case where credit is to be provided subject to a maximum credit limit of less than £1,200, the credit limit shall be assumed to be an amount equal to that maximum limit.

2. Permissible tolerances in disclosure of an APR

For the purposes of these Regulations, it shall be sufficient compliance with the requirement to show an APR if there is included in the consumer credit agreement -

(a) a rate which exceeds the APR by not more than one, or

(b) a rate which falls short of the APR by not more than 0.1, or

(c) in a case to which either of paragraphs 3 or 4 of this Schedule applies, a rate determined in accordance with those paragraphs or whichever of them applies to that case.

3. Tolerance where repayments are nearly equal