CONC 6.4 Appropriation of payments

This section applies to

1. (1)

   a firm with respect to consumer credit lending;

2. (2)

   a firm with respect to consumer hiring.

1. (1)

   Where a firm is entitled to payments from the same customer in respect of two or more regulated agreements, the firm must allow the customer, on making any payment in respect of those agreements which is not sufficient to discharge the total amount then due under all the agreements, to appropriate the sum paid by him:

   1. (a)

      in or towards the satisfaction of the sum due under any one of the agreements; or

   2. (b)

      in or towards the satisfaction of the sums due under any two or more of the agreements in such proportions as the customer thinks fit.

      [Note: section 81(1) of CCA]

2. (2)

   If the customer fails to make any such appropriation where one or more of the agreements is:

   1. (a)

      a hire-purchase agreement or conditional sale agreement; or

   2. (b)

      a consumer hire agreement; or

   3. (c)

      an agreement in relation to which any security is provided;

   the firm must appropriate the payment towards satisfaction of the sums due under the agreements in the proportions which those sums bear to one another.

   [Note: section 81(2) of CCA]