Schedule 3 Formula for calculation of rebate where settlement takes place between two instalment dates and credit is repayable by instalments at other than monthly or shorter intervals.

Regulation 4(3)

where

R1 = rebate if early settlement had taken place at the instalment date immediately before the settlement date

R2 = rebate if early settlement had taken place at the instalment date immediately following the settlement date

f = inclusive period between the settlement date (determined by Regulation 6 and deferable in accordance with Regulation 5) and the instalment date immediately before it (in days)

g = period commencing on the instalment date immediately before the settlement date and ending on the day before the next instalment date (in days)

EXAMPLE

Facts

A loan of £1000 is agreed to be repaid by 36 quarterly instalments of £48, with repayment being made on the 1st day of each quarter. The consumer settles the loan on 1st April between the 30th payment made on 1st March and the 31st payment due on 1st June. Under Regulation 6(2) the settlement date is 15th April and under Regulation 5(b) it is deferred by 1 month (ie to 15th May when 6 quarterly instalm