§ Facts. The N Bank agrees to lend O (an individual) £2,000 to buy a car from P. To make sure the loan is used as intended, the N Bank stipulates that the money must be paid by it direct to P.
§ Analysis. The agreement is a consumer credit agreement by virtue of section 8(1A). Since it falls within section 11(1)(b), it is a restricted-use credit agreement, P being the supplier. If the N Bank had not stipulated for direct payment to the supplier, section 11(2) would have operated and made the agreement into one for unrestricted-use credit.