Section 54 — Credit Contracts and Consumer Finance Act 2003: Creditor's loss arising from full prepayment

54 Creditor's loss arising from full prepayment (1) A creditor must calculate a reasonable estimate of its loss arising from a full prepayment using— (a) a procedure prescribed for the purposes of this section by regulations; or (b) an appropriate procedure set out in the consumer credit contract for calculating that loss. (2) If a creditor uses a procedure prescribed for the purposes of this section by regulations, the amount calculated is to be treated in any court and in any proceedings under this Act as a reasonable estimate of the creditor's loss.