Default under Regulated Agreements Section 18: Definition of “default sum”
43.Section 18 inserts a new definition of “default sum” into the 1974 Act. “Default sum” means a sum payable by a debtor or hirer in connection with his breach of a regulated agreement (e.g. a charge imposed for late payment of an instalment due under the agreement or a fee imposed for exceeding a credit limit on a credit card). A default sum does not include sums that, as a consequence of a breach of the agreement, become payable earlier than they otherwise would have done. It does not include interest.