Regulated vs unregulated business lendins: whit's the difference?

Summary: whether a lendin is regulated decides whit legal protections ye get gin somethin gangs wrang.

The dividin line

Unner Article 60B FSMA RAO 2001, regulated credit agreements are essentially thae made wi an individual. A lendin tae a body corporate — a leemitit company or LLP — for business purposes isna a regulated consumer-credit agreement, sae it sits ootwith the FCA's consumer-credit regulation.

Whit this means

On an unregulated lendin, the Financial Ombudsman Service an the FSCS dinna apply, an the coorts are the final escalation efter oor internal complaints process. That is why we publish oor terms an costs openly an shaw ilka figure on yer Key Information Sheet (KIS) afore ye sign.

Scots summary — the hale English version o this airticle is the authoritative ane. Read the hale airticle in English