Blemain hopes to reduce CCA impact

The move is to combat confusion arising from the regulatory changes when they come into force on 6 April.

Blemain Finance’s Underwriters will also be completing Unregulated, accurate, full packs on Saturday 5 April until 1pm to help support intermediaries and give them as much time as possible to submit their cases.

To provide brokers with a degree of clarity with regards to CCA regulation, Blemain has created two distinct loans categories – consumer and business.

Consumer loans are to be used when the predominant purpose of the loan is for consumer purposes. This defined as when more than 50 per cent of the loan is for personal or non-business use.

NB: All loans less than £25,001 regardless of predominant purpose are consumer loans and therefore CCA regulated.

Business loans are the inverse, where more than half of the loan will be put to business use. As a business loan is exempt from CCA Regulation no consideration period is required, further to this, loans for any purpose to business partnerships of more than 3 persons and Limited companies will always be unregulated.