§ Facts. Q, a debt-adjuster, agrees to pay off debts owed by R (an individual) to various moneylenders. For this purpose the agreement 345 provides for the making of a loan by Q to R in return for R's agreeing to repay the loan by instalments with interest. The loan money is not paid over to R but retained by Q and used to pay off the moneylenders.
§ Analysis. This is an agreement to refinance existing indebtedness of the debtor's and if the loan by Q does not exceed £5,000 is a restricted-use credit agreement falling within section 11(1)(c).