This document establishes the legal framework for calculating the total charge for credit in consumer credit agreements within the United Kingdom. The regulations were drafted by the British government to standardize how lenders disclose costs to consumers, ensuring transparency in financial transactions. By defining specific components of the total charge, the text provides a mandatory methodology for financial institutions to follow when presenting credit terms to the public.

Legal professionals and financial compliance officers utilize this document as a foundational reference for historical regulatory standards in the UK credit market. Readers frequently note the technical density of the prose, which is typical of statutory instruments intended for strict legal interpretation.