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Consumer Credit Act 1974

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Part I E+W+S+N.I.[F1OFFICE OF FAIR TRADING]

1 General functions of [F2OFT].E+W+S+N.I.
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Amendments (Textual)

F2Words in sidenote of s. 1 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(2)(c); S.I. 2003/766, art. 2, Sch. (with art. 3)

(1)It is the duty of the [F3 the Office of Fair Trading (“the OFT”)]

(a)to administer the licensing system set up by this Act,

(b)to exercise the adjudicating functions conferred on [F4it] by this Act in relation to the issue, renewal, variation, suspension and revocation of licences, and other matters,

[F5(ba)to monitor, as it sees fit, businesses being carried on under licences;]

(c)generally to superintend the working and enforcement of this Act, and regulations made under it, and

(d)where necessary or expedient, [F6itself] to take steps to enforce this Act, and regulations so made.

(2)It is the duty of the [F7OFT] , so far as appears to [F8it] to be practicable and having regard both to the national interest and the interests of persons carrying on businesses to which this Act applies and their customers, to keep under review and from time to time advise the Secretary of State about—

(a)social and commercial developments in the United Kingdom and elsewhere relating to the provision of credit or bailment or (in Scotland) hiring of goods to individuals, and related activities; and

(b)the working and enforcement of this Act and orders and regulations made under it.

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Amendments (Textual)

2 Powers of Secretary of State.E+W+S+N.I.

(1)The Secretary of State may by order—

(a)confer on the [F9OFT] additional functions concerning the provision of credit or bailment or (in Scotland) hiring of goods to individuals, and related activities, and

(b)regulate the carrying out by the [F9OFT] of [F10its] functions under this Act.

(2)The Secretary of State may give general directions indicating considerations to which the [F9OFT] should have particular regard in carrying out [F10its] functions under this Act, and may give specific directions on any matter connected with the carrying out by the [F9OFT] of those functions.

(3)The Secretary of State, on giving any directions under subsection (2), shall arrange for them to be published in such manner as he thinks most suitable for drawing them to the attention of interested persons.

(4)With the approval of the Secretary of State and the Treasury, the [F9OFT ] may charge, for any service or facility provided by [F11it] under this Act, a fee of an amount specified by general notice (the “specified fee ”).

(5)Provision may be made under subsection (4) for reduced fees, or no fees at all, to be paid for certain services or facilities by persons of a specified description, and references in this Act to the specified fee shall, in such cases, be construed accordingly.

(6)An order under subsection (1)(a) shall be made by statutory instrument and shall be of no effect unless a draft of the order has been laid before and approved by each House of Parliament.

(7)References in subsection (2) to the functions of the [F9OFT] under this Act do not include the making of a determination to which section 41 F12. . . (appeals from [F9OFT] to [F13the [F14First-tier Tribunal]]) applies.

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Amendments (Textual)

F13Words in s. 2(7) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {58(1)}, 71(2) (with Sch. 3 para. 28); S.I. 2007/3300, art. 3(2), Sch. 2

F153. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

4 Dissemination of information and advice.E+W+S+N.I.

The [F16OFT] shall arrange for the dissemination, in such form and manner as [F17it] considers appropriate, of such information and advice as it may appear to [F18it] expedient to give to the public in the United Kingdom about the operation of this Act, [F19the consumer credit jurisdiction under Part 16 of the Financial Services and Markets Act 2000,] the credit facilities available to them, and other matters within the scope of [F20its] functions under this Act.

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Amendments (Textual)

F19Words in s. 4 inserted (16.6.2006) by Consumer Credit Act 2006 (c. 14), ss. {61(1)}, 71(2); S.I. 2006/1508, art. 3(1), Sch. 1

5 Annual and other reports.E+W+S+N.I.

F21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

6 Form etc. of applications.E+W+S+N.I.

(1)An application to the [F22OFT] under this Act is of no effect unless the requirements of this section are satisfied.

(2)The application must be in writing, and in such form, and accompanied by such [F23information and documents] , as the [F22OFT] may specify [F24or describe in a] general notice, F25. . . .

[F26(2A)The application must also be accompanied—

(a)in the case of an application for a licence or for the renewal of a licence, by the charge payable by virtue of section 6A;

(b)in any other case, by the specified fee.]

[F27(3)Where the OFT receives an application, it may by notice to the applicant at any time before the determination of the application require him to provide such information or documents relevant to the application as may be specified or described in the notice.]

(4)The [F22OFT] may by notice require the applicant to publish details of his application at a time or times and in a manner specified in the notice.

[F28(5)Subsection (6) applies where a general notice under subsection (2) comes into effect—

(a)after an application has been made; but

(b)before its determination.

(6)The applicant shall, within such period as may be specified in the general notice, provide the OFT with any information or document—

(a)which he has not previously provided in relation to the application by virtue of this section;

(b)which he would have been required to provide with his application had it been made after the general notice came into effect; and

(c)which the general notice requires to be provided for the purposes of this subsection.

(7)An applicant shall notify the OFT, giving details, if before his application is determined—

(a)any information or document provided by him in relation to the application by virtue of this section is, to any extent, superseded or otherwise affected by a change in circumstances; or

(b)he becomes aware of an error in or omission from any such information or document.

(8)A notification for the purposes of subsection (7) shall be given within the period of 28 days beginning with the day on which (as the case may be)—

(a)the information or document is superseded;

(b)the change in circumstances occurs; or

(c)the applicant becomes aware of the error or omission.

(9)Subsection (7) does not require an applicant to notify the OFT about—

(a)anything of which he is required to notify it under section 36; or

(b)an error in or omission from any information or document which is a clerical error or omission not affecting the substance of the information or document.]

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Amendments (Textual)

F23Words in s. 6(2) substituted (1.12.2007) by Consumer Credit Act 2006 (c. 14), ss. {44(1)(a)}, 71(2) (with Sch. 3 para. 23(1)); S.I. 2007/3300, art. 3(1), Sch. 1

F24Words in s. 6(2) substituted (1.12.2007) by Consumer Credit Act 2006 (c. 14), ss. {44(1)(b)}, 71(2) (with Sch. 3 para. 23(1)); S.I. 2007/3300, art. 3(1), Sch. 1

F26S. 6(2A) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {27(2)}, 71(2) (with Sch. 3 para. 18(2)); S.I. 2007/3300, art. 3(2), Sch. 2

F27S. 6(3) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {44(2)}, 71(2) (with Sch. 3 para. 23(1)); S.I. 2007/3300, art. 3(2), Sch. 2

F28S. 6(5)-(9) inserted (1.12.2007 for specified purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {44(3)}, 71(2) (with Sch. 3 para. 23(1)); S.I. 2007/3300, arts. 3{(1)}{(2)}, Schs. 1, 2

[F296ACharge on applicants for licences etc.E+W+S+N.I.
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Amendments (Textual)

F29S. 6A inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {27(1)}, 71(2) (with Sch. 3 para. 18(1)); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

(1)An applicant for a licence, or for the renewal of a licence, shall pay the OFT a charge towards the costs of carrying out its functions under this Act.

(2)The amount of the charge payable by an applicant shall be determined in accordance with provision made by the OFT by general notice.

(3)The provision that may be made by the OFT under subsection (2) includes—

(a)different provision in relation to persons of different descriptions;

(b)provision for no charge at all to be payable by persons of specified descriptions.

(4)The approval of the Secretary of State and the Treasury is required for a general notice under subsection (2).]

7 Penalty for false information.E+W+S+N.I.

[F30A person commits an offence if, for the purposes of, or in connection with, any requirement imposed or other provision made by or under this Act, he knowingly or recklessly gives information to the OFT, or to an officer of the OFT, which, in a material particular, is false or misleading.]

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Amendments (Textual)

F30S. 7 substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {51(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Part II E+W+S+N.I. Credit Agreements, Hire Agreements and Linked Transactions

8 Consumer credit agreements.E+W+S+N.I.

(1)A [F31consumer] credit agreement is an agreement between an individual ( “the debtor ”) and any other person ( “the creditor ”) by which the creditor provides the debtor with credit of any amount.

(2)F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)A consumer credit agreement is a regulated agreement within the meaning of this Act if it is not an agreement (an “exempt agreement ”) specified in or under section 16 [F33, 16A [F34, 16B or 16C]] .

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Amendments (Textual)

F31Word in s. 8(1) substituted (6.4.2008 for certain purposes otherwise 31.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {2(1)(a)}, 71(2); S.I. 2008/831, art. 3(1)(2), Schs. 2, 3 (with art. 4(1)) (as amended by S.I. 2008/2444, art. 2)

F32S. 8(2) ceases to have effect and repealed (6.4.2008 for certain purposes otherwise 31.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {2(1)(b)}, 70, 71(2), {Sch. 4}; S.I. 2008/831, art. 3(1)(2), Schs. 2, 3 (with art. 4(1)) (as amended by S.I. 2008/2444, art. 2)

F33Words in s. 8(3) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {5(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

9 Meaning of credit.E+W+S+N.I.

(1)In this Act “credit ” includes a cash loan, and any other form of financial accommodation.

(2)Where credit is provided otherwise than in sterling it shall be treated for the purposes of this Act as provided in sterling of an equivalent amount.

(3)Without prejudice to the generality of subsection (1), the person by whom goods are bailed or (in Scotland) hired to an individual under a hire-purchase agreement shall be taken to provide him with fixed-sum credit to finance the transaction of an amount equal to the total price of the goods less the aggregate of the deposit (if any) and the total charge for credit.

(4)For the purposes of this Act, an item entering into the total charge for credit shall not be treated as credit even though time is allowed for its payment.

10 Running-account credit and fixed-sum credit.E+W+S+N.I.

(1)For the purposes of this Act—

(a)running-account credit is a facility under a [F35consumer] credit agreement whereby the debtor is enabled to receive from time to time (whether in his own person, or by another person) from the creditor or a third party cash, goods and services (or any of them) to an amount or value such that, taking into account payments made by or to the credit of the debtor, the credit limit (if any) is not at any time exceeded; and

(b)fixed-sum credit is any other facility under a [F35consumer] credit agreement whereby the debtor is enabled to receive credit (whether in one amount or by instalments).

(2)In relation to running-account credit, “credit limit ” means, as respects any period, the maximum debit balance which, under the credit agreement, is allowed to stand on the account during that period, disregarding any term of the agreement allowing that maximum to be exceeded merely temporarily.

(3)For the purposes of [F36any provision of this Act that specifies an amount of credit (except section 17(1)(a))] , running-account credit shall be taken not to exceed the amount specified in [F37that provision]( “the specified amount ”) if—

(a)the credit limit does not exceed the specified amount; or

(b)whether or not there is a credit limit, and if there is, notwithstanding that it exceeds the specified amount,—

(i)the debtor is not enabled to draw at any one time an amount which, so far as (having regard to section 9(4)) it represents credit, exceeds the specified amount, or

(ii)the agreement provides that, if the debit balance rises above a given amount (not exceeding the specified amount), the rate of the total charge for credit increases or any other condition favouring the creditor or his associate comes into operation, or

(iii)at the time the agreement is made it is probable, having regard to the terms of the agreement and any other relevant considerations, that the debit balance will not at any time rise above the specified amount.

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Amendments (Textual)

F35Word in s. 10(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {5(2)(a)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

11 Restricted-use credit and unrestricted-use credit.E+W+S+N.I.

(1)A restricted-use credit agreement is a regulated consumer credit agreement—

(a)to finance a transaction between the debtor and the creditor, whether forming part of that agreement or not, or

(b)to finance a transaction between the debtor and a person (the “supplier ”) other than the creditor, or

(c)to refinance any existing indebtedness of the debtor’s, whether to the creditor or another person,

and “restricted-use credit ” shall be construed accordingly.

(2)An unrestricted-use credit agreement is a regulated consumer credit agreement not falling within subsection (1), and “unrestricted-use credit ” shall be construed accordingly.

(3)An agreement does not fall within subsection (1) if the credit is in fact provided in such a way as to leave the debtor free to use it as he chooses, even though certain uses would contravene that or any other agreement.

(4)An agreement may fall within subsection (1)(b) although the identity of the supplier is unknown at the time the agreement is made.

12 Debtor-creditor supplier agreements.E+W+S+N.I.

A debtor-creditor-supplier agreement is a regulated consumer credit agreement being—

(a)a restricted-use credit agreement which falls within section 11(1)(a), or

(b)a restricted-use credit agreement which falls within section 11(1)(b) and is made by the creditor under pre-existing arrangements, or in contemplation of future arrangements, between himself and the supplier, or

(c)an unrestricted-use credit agreement which is made by the creditor under pre-existing arrangements between himself and a person (the “supplier ”) other than the debtor in the knowledge that the credit is to be used to finance a transaction between the debtor and the supplier.

13 Debtor-creditor agreements.E+W+S+N.I.

A debtor-creditor agreement is a regulated consumer credit agreement being—

(a)a restricted-use credit agreement which falls within section 11(1)(b) but is not made by the creditor under pre-existing arrangements, or in contemplation of future arrangements, between himself and the supplier, or

(b)a restricted-use credit agreement which falls within section 11(1)(c), or

(c)an unrestricted-use credit agreement which is not made by the creditor under pre-existing arrangements between himself and a person (the “supplier ”) other than the debtor in the knowledge that the credit is to be used to finance a transaction between the debtor and the supplier.

14 Credit-token agreements.E+W+S+N.I.

(1)A credit-token is a card, check, voucher, coupon, stamp, form, booklet or other document or thing given to an individual by a person carrying on a consumer credit business, who undertakes—

(a)that on the production of it (whether or not some other action is also required) he will supply cash, goods and services (or any of them) on credit, or

(b)that where, on the production of it to a third party (whether or not any other action is also required), the third party supplies cash, goods and services (or any of them), he will pay the third party for them (whether or not deducting any discount or commission), in return for payment to him by the individual.

(2)A credit-token agreement is a regulated agreement for the provision of credit in connection with the use of a credit-token.

(3)Without prejudice to the generality of section 9(1), the person who gives to an individual an undertaking falling within subsection (1)(b) shall be taken to provide him with credit drawn on whenever a third party supplies him with cash, goods or services.

(4)For the purposes of subsection (1), use of an object to operate a machine provided by the person giving the object or a third party shall be treated as the production of the object to him.

15 Consumer hire agreements.E+W+S+N.I.

(1)A consumer hire agreement is an agreement made by a person with an individual (the “hirer ”) for the bailment or (in Scotland) the hiring of goods to the hirer, being an agreement which—

(a)is not a hire-purchase agreement, and

(b)is capable of subsisting for more than three months, F38. . .

(c)F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)A consumer hire agreement is a regulated agreement if it is not an exempt agreement.

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Amendments (Textual)

F38S. 15(1)(c) and preceding word ceases to have effect (6.4.2008) and repealed (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {2(2)}, 70, 71(2), {Sch. 4}; S.I. 2007/3300, art. 3(2), Sch. 2

16 Exempt agreements.E+W+S+N.I.

(1)This Act does not regulate a consumer credit agreement where the creditor is a local authority . . . F39, or a body specified, or of a description specified, in an order made by the Secretary of State, being—

[F40(a)an insurer;]

(b)a friendly society,

(c)an organisation of employers or organisation of workers,

(d)a charity,

(e)a land improvement company, . . . F41

(f)a body corporate named or specifically referred to in any public general Act.

[F42(ff)a body corporate named or specifically referred to in an order made under—

section 156(4), 444(1) or 447(2)(a) of the Housing Act 1985 [F43section 156(4) of that Act as it has effect by virtue of section 17 of the Housing Act 1996 (the right to acquire),],

section [F44223 or 229 of the Housing (Scotland) Act 1987], or

Article 154(1)(a) or 156AA of the Housing (Northern Ireland) Order 1981 or Article 10(6A) of the Housing (Northern Ireland) Order 1983; or][F45, or

(g)a building society.][F46, or

[F47(h)a deposit-taker.]]

(2)Subsection (1) applies only where the agreement is—

(a)a debtor-creditor-supplier agreement financing—

(i)the purchase of land, or

(ii)the provision of dwellings on any land, and secured by a land mortgage on that land; or

(b)a debtor-creditor agreement secured by any land mortgage; or

(c)a debtor-creditor-supplier agreement financing a transaction which is a linked transaction in relation to—

(i)an agreement falling within paragraph (a), or

(ii)an agreement falling within paragraph (b) financing—

(aa)the purchase of any land, or

(bb)the provision of dwellings on any land,

and secured by a land mortgage on the land referred to in paragraph (a) or, as the case may be, the land referred to in sub-paragraph (ii).

[F48(3)Before he makes, varies or revokes an order under subsection (1), the Secretary of State must undertake the necessary consultation.

(3A)The necessary consultation means consultation with the bodies mentioned in the following table in relation to the provision under which the order is to be made, varied or revoked:

TABLE

Provision of subsection (1)Consultee
Paragraph (a) or (b)The Financial Services Authority
Paragraph (d)The [F49Charity Commission]
Paragraph (e), (f) or (ff)Any Minister of the Crown with responsibilities in relation to the body in question
Paragraph (g) or (h)The Treasury and the Financial Services Authority]

(4)An order under subsection (1) relating to a body may be limited so as to apply only to agreements by that body of a description specified in the order.

(5)The Secretary of State may by order provide that this Act shall not regulate other consumer credit agreements where—

(a)the number of payments to be made by the debtor does not exceed the number specified for that purpose in the order, or

(b)the rate of the total charge for credit does not exceed the rate so specified, or

(c)an agreement has a connection with a country outside the United Kingdom.

(6)The Secretary of State may by order provide that this Act shall not regulate consumer hire agreements of a description specified in the order where—

(a)the owner is a body corporate authorised by or under any enactment to supply electricity, gas or water, and

(b)the subject of the agreement is a meter or metering equipment,

[F50or where the owner is a [F51provider of a public electronic communications service who is specified in the order]].

[F52(6A)This Act does not regulate a consumer credit agreement where the creditor is a housing authority and the agreement is secured by a land mortgage of a dwelling.

(6B)In subsection (6A) “housing authority ” means—

(a)as regards England and Wales, [F53the Homes and Communities Agency, the Welsh new towns residuary body,][F54the Regulator of Social Housing and] an authority or body within section 80(1) of the Housing Act 1985 (the landlord condition for secure tenancies), other than a housing association or a housing trust which is a charity;

(b)as regards Scotland, a development corporation established under an order made, or having effect as if made under the New Towns (Scotland) Act 1968, the Scottish Special Housing Association or the Housing Corporation;

(c)as regards Northern Ireland, the Northern Ireland Housing Executive.]

[F55(6BA)In subsection (6B)(a) “the Welsh new towns residuary body” means the Welsh Ministers so far as exercising functions in relation to anything transferred (or to be transferred) to them as mentioned in section 36(1)(a)(i) to (iii) of the New Towns Act 1981.]

[F56[F57(6C)This Act does not regulate a consumer credit agreement if—

(a)it is secured by a land mortgage and entering into the agreement as lender is a regulated activity for the purposes of the Financial Services and Markets Act 2000; or

(b)it is or forms part of a regulated home purchase plan and entering into the agreement as home purchase provider is a regulated activity for the purposes of that Act.]

(6D)But section 126, and any other provision so far as it relates to section 126, applies to an agreement which would (but for [F58subsection (6C)(a)]) be a regulated agreement.

(6E)Subsection (6C) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000 (regulated activities: power to specify classes of activity and categories of investment);

(b)any order for the time being in force under that section; and

(c)Schedule 2 to that Act.]

(7)F59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F60(7A)Nothing in this section affects the application of sections 140A to 140C.]

[F61(8)In the application of this section to Scotland, subsection (3A) shall have effect as if the reference to the [F49Charity Commission] were a reference to the Lord Advocate.]

(9)In the application of this section to Northern Ireland [F62subsection (3A)] shall have effect as if any reference to a Minister of the Crown were a reference to a Northern Ireland department, F63. . . and any reference to the [F49Charity Commission] were a reference to the Department of Finance for Northern Ireland.

[F64(10)In this section—

(a) “deposit-taker ” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(ii)an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits,

(iii)any wholly owned subsidiary (within the meaning of [F65the Companies Acts (see section 1159 of the Companies Act 2006)]) of a person mentioned in sub-paragraph (i), or

(iv)any undertaking which, in relation to a person mentioned in sub-paragraph (ii), is a subsidiary undertaking within the meaning of any rule of law in force in the EEA State in question for purposes connected with the implementation of the European Council Seventh Company Law Directive of 13 June 1983 on consolidated accounts (No. 83/349/EEC), and which has no members other than that person;

(b) “insurer ” means—

(i)a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(ii)an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance,

but does not include a friendly society or an organisation of workers or of employers.

(11)Subsection (10) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.]

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Amendments (Textual)

F40S. 16(1)(a) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(2)(a)

F43Words in s. 16(1)(ff) inserted (E.W.S.) (1.4.1997) by S.I. 1997/627, art. 2, Sch. para. 2

F47S. 16(1)(h) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(2)(b)

F48S. 16(3)(3A) substituted for s. 16(3) (1.12.2001) by S.I. 2001/3649, arts. 1, 165(3)

F51Words in s. 16(6) substituted (25.7.2003 for specified purposes, 29.12.2003 for further specified purposes) by Communications Act 2003 (c. 21), ss. 406, 408, 411, Sch. 17 para. 47 (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), 3(1), Sch. 1 (with arts. 3(2) (as amended (8.12.2003) by S.I. 2003/3142, art. 1(3))); S.I. 2003/3142, art. 3(2) (with art. 11)

F59S. 16(7) repealed (6.4.2007) by Consumer Credit Act 2006 (c. 14), ss. 70, 71, Sch. 4 (with Sch. 3 para. 15(5)); S.I. 2007/123, art. 3(2), Sch. 2 (as amended by S.I. 2007/387, art. {2(1)(3)(e)(i)})

F61S. 16(8) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(4)

F62Words in s. 16(9) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(5)(a)

F63Words in s. 16(9) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 165(5)(b)

F64S. 16(10)(11) inserted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(6)

Modifications etc. (not altering text)

[F6616AExemption relating to high net worth debtors and hirersE+W+S+N.I.
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Amendments (Textual)

F66S. 16A inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {3}, 71(2) (with Sch. 3 para. 15(4)); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

(1)The Secretary of State may by order provide that this Act shall not regulate a consumer credit agreement or a consumer hire agreement where—

(a)the debtor or hirer is a natural person;

(b)the agreement includes a declaration made by him to the effect that he agrees to forgo the protection and remedies that would be available to him under this Act if the agreement were a regulated agreement;

(c)a statement of high net worth has been made in relation to him; and

(d)that statement is current in relation to the agreement and a copy of it was provided to the creditor or owner before the agreement was made.

(2)For the purposes of this section a statement of high net worth is a statement to the effect that, in the opinion of the person making it, the natural person in relation to whom it is made—

(a)received during the previous financial year income of a specified description totalling an amount of not less than the specified amount; or

(b)had throughout that year net assets of a specified description with a total value of not less than the specified value.

(3)Such a statement—

(a)may not be made by the person in relation to whom it is made;

(b)must be made by a person of a specified description; and

(c)is current in relation to an agreement if it was made during the period of one year ending with the day on which the agreement is made.

(4)An order under this section may make provision about—

(a)how amounts of income and values of net assets are to be determined for the purposes of subsection (2)(a) and (b);

(b)the form, content and signing of—

(i)statements of high net worth;

(ii)declarations for the purposes of subsection (1)(b).

(5)Where an agreement has two or more debtors or hirers, for the purposes of paragraph (c) of subsection (1) a separate statement of high net worth must have been made in relation to each of them; and paragraph (d) of that subsection shall have effect accordingly.

(6)In this section—

  • ‘previous financial year’ means, in relation to a statement of high net worth, the financial year immediately preceding the financial year during which the statement is made;

  • ‘specified’ means specified in an order under this section.

(7)In subsection (6) ‘financial year’ means a period of one year ending with 31st March.

(8)Nothing in this section affects the application of sections 140A to 140C.]

[F6716BExemption relating to businessesE+W+S+N.I.
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Amendments (Textual)

F67S. 16B inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {4}, 71(2) (with Sch. 3 para. 15(4)); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

(1)This Act does not regulate—

(a)a consumer credit agreement by which the creditor provides the debtor with credit exceeding £25,000, or

(b)a consumer hire agreement that requires the hirer to make payments exceeding £25,000,

if the agreement is entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

(2)If an agreement includes a declaration made by the debtor or hirer to the effect that the agreement is entered into by him wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him, the agreement shall be presumed to have been entered into by him wholly or predominantly for such purposes.

(3)But that presumption does not apply if, when the agreement is entered into—

(a)the creditor or owner, or

(b)any person who has acted on his behalf in connection with the entering into of the agreement,

knows, or has reasonable cause to suspect, that the agreement is not entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

(4)The Secretary of State may by order make provision about the form, content and signing of declarations for the purposes of subsection (2).

(5)Where an agreement has two or more creditors or owners, in subsection (3) references to the creditor or owner are references to any one or more of them.

(6)Nothing in this section affects the application of sections 140A to 140C.]

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Modifications etc. (not altering text)

[F6816CExemption relating to investment propertiesE+W+S+N.I.
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Amendments (Textual)

 (1) This Act does not regulate a consumer credit agreement if, at the time the agreement is entered into, any sums due under it are secured by a land mortgage on land where the condition in subsection (2) is satisfied.  (2) The condition is that less than 40% of the land is used, or is intended to be used, as or in connection with a dwelling—

(a)by the debtor or a person connected with the debtor, or

(b)in the case of credit provided to trustees, by an individual who is the beneficiary of the trust or a person connected with such an individual.

 (3) For the purposes of subsection (2) the area of any land which comprises a building or other structure containing two or more storeys is to be taken to be the aggregate of the floor areas of each of those storeys.  (4) For the purposes of subsection (2) a person is “connected with” the debtor or an individual who is the beneficiary of a trust if he is—

(a)that person's spouse or civil partner;

(b)a person (whether or not of the opposite sex) whose relationship with that person has the characteristics of the relationship between husband and wife; or

(c)that person's parent, brother, sister, child, grandparent or grandchild.

 (5) Section 126 (enforcement of land mortgages) applies to an agreement which would but for this section be a regulated agreement.  (6) Nothing in this section affects the application of sections 140A to 140C.]

17 Small agreements.E+W+S+N.I.

(1)A small agreement is—

(a)A regulated consumer credit agreement for credit not exceeding [F69£50], other than a hire-purchase or conditional sale agreement: or

(b)a regulated consumer hire agreement which does not require the hirer to make payments exceeding [F69£50],

being an agreement which is either unsecured or secured by a guarantee or indemnity only (whether or not the guarantee or indemnity is itself secured).

[F70(2)For the purposes of paragraph (a) of subsection (1), running-account credit shall be taken not to exceed the amount specified in that paragraph if the credit limit does not exceed that amount.]

(3)Where—

(a)two or more small agreements are made at or about the same time between the same parties, and

(b)it appears probable that they would instead have been made as a single agreement but for the desire to avoid the operation of provisions of this Act which would have applied to that single agreement but, apart from this subsection, are not applicable to the small agreements,

this Act applies to the small agreements as if they were regulated agreements other than small agreements.

(4)If, apart from this subsection, subsection (3) does not apply to any agreements but would apply if, for any party or parties to any of the agreements, there were substituted an associate of that party, or associates of each of those parties, as the case may be, then subsection (3) shall apply to the agreements.

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Amendments (Textual)

F69"£50" substituted by S.I. 1983/1878, art. 3, Sch. Pt. I

18 Multiple agreements.E+W+S+N.I.

(1)This section applies to an agreement (a “multiple agreement ”) if its terms are such as—

(a)to place a part of it within one category of agreement mentioned in this Act, and another part of it within a different category of agreement so mentioned, or within a category of agreement not so mentioned, or

(b)to place it, or a part of it, within two or more categories of agreement so mentioned.

(2)Where a part of an agreement falls within subsection (1), that part shall be treated for the purposes of this Act as a separate agreement.

(3)Where an agreement falls within subsection (1)(b), it shall be treated as an agreement in each of the categories in question, and this Act shall apply to it accordingly.

(4)Where under subsection (2) a part of a multiple agreement is to be treated as a separate agreement, the multiple agreement shall (with any necessary modifications) be construed accordingly; and any sum payable under the multiple agreement, if not apportioned by the parties, shall for the purposes of proceedings in any court relating to the multiple agreement be apportioned by the court as may be requisite.

(5)In the case of an agreement for running-account credit, a term of the agreement allowing the credit limit to be exceeded merely temporarily shall not be treated as a separate agreement or as providing fixed-sum credit in respect of the excess.

(6)This Act does not apply to a multiple agreement so far as the agreement relates to goods if under the agreement payments are to be made in respect of the goods in the form of rent (other than a rentcharge) issuing out of land.

19 Linked transactions.E+W+S+N.I.

(1)A transaction entered into by the debtor or hirer, or a relative of his, with any other person ( “the other party ”), except one for the provision of security, is a linked transaction in relation to an actual or prospective regulated agreement (the “principal agreement ”) of which it does not form part if—

(a)the transaction is entered into in compliance with a term of the principal agreement; or

(b)the principal agreement is a debtor-creditor-supplier agreement and the transaction is financed, or to be financed, by the principal agreement; or

(c)the other party is a person mentioned in subsection (2), and a person so mentioned initiated the transaction by suggesting it to the debtor or hirer, or his relative, who enters into it—

(i)to induce the creditor or owner to enter into the principal agreement, or

(ii)for another purpose related to the principal agreement, or

(iii)where the principal agreement is a restricted-use credit agreement, for a purpose related to a transaction financed, or to be financed, by the principal agreement.

(2)The persons referred to in subsection (1)(c) are—

(a)the creditor or owner, or his associate;

(b)a person who, in the negotiation of the transaction, is represented by a credit-broker who is also a negotiator in antecedent negotiations for the principal agreement;

(c)a person who, at the time the transaction is initiated, knows that the principal agreement has been made or contemplates that it might be made.

(3)A linked transaction entered into before the making of the principal agreement has no effect until such time (if any) as that agreement is made.

(4)Regulations may exclude linked transactions of the prescribed description from the operation of subsection (3).

20 Total charge for credit.E+W+S+N.I.

(1)The Secretary of State shall make regulations containing such provisions as appear to him appropriate for determining the true cost to the debtor of the credit provided or to be provided under an actual or prospective consumer credit agreement (the “total charge for credit ”), and regulations so made shall prescribe—

(a)what items are to be treated as entering into the total charge for credit, and how their amount is to be ascertained;

(b)the method of calculating the rate of the total charge for credit.

(2)Regulations under subsection (1) may provide for the whole or part of the amount payable by the debtor or his relative under any linked transaction to be included in the total charge for credit, whether or not the creditor is a party to the transaction or derives benefit from it.

Part III E+W+S+N.I. Licensing of Credit and Hire Businesses

Licensing principlesE+W+S+N.I.

21 Businesses needing a licence.E+W+S+N.I.

(1)Subject to this section, a licence is required to carry on a consumer credit business or [F71a consumer hire business or an ancillary credit business] .

(2)A local authority does not need a licence to carry on a business.

(3)A body corporate empowered by a public general Act naming it to carry on a business does not need a licence to do so.

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Amendments (Textual)

F71Words in s. 21(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {33(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Modifications etc. (not altering text)

C7S. 21 excluded (9.2.2011 for specified purposes and otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 31(2) (with reg. 3)

22 Standard and group licences.E+W+S+N.I.

(1)A licence may be—

(a)a standard licence, that is a licence, issued by the [F72OFT] to a person named in the licence on an application made by him, which, [F73whilst the licence is in effect] , covers such activities as are described in the licence, or

(b)a group licence, that is a licence, issued by the [F72OFT](whether on the application of any person or of [F74its] own motion), which, [F75whilst the licence is in effect] , covers such persons and activities as are described in the licence.

[F76(1A)The terms of a licence shall specify—

(a)whether it has effect indefinitely or only for a limited period; and

(b)if it has effect for a limited period, that period.

(1B)For the purposes of subsection (1A)(b) the period specified shall be such period not exceeding the prescribed period as the OFT thinks fit (subject to subsection (1E)).

(1C)A standard licence shall have effect indefinitely unless—

(a)the application for its issue requests that it have effect for a limited period only; or

(b)the OFT otherwise thinks there is good reason why it should have effect for such a period only.

(1D)A group licence shall have effect for a limited period only unless the OFT thinks there is good reason why it should have effect indefinitely.

(1E)Where a licence which has effect indefinitely is to be varied under section 30 or 31 for the purpose of limiting the licence's duration, the variation shall provide for the licence to expire—

(a)in the case of a variation under section 30, at the end of such period from the time of the variation as is set out in the application for the variation; or

(b)in the case of a variation under section 31, at the end of such period from the time of the variation as the OFT thinks fit;

but a period mentioned in paragraph (a) or (b) shall not exceed the prescribed period.]

(2)A licence is not assignable or, subject to section 37, transmissible on death or in any other way.

(3)Except in the case of a partnership or an unincorporated body of persons, a standard licence shall not be issued to more than one person.

(4)A standard licence issued to a partnership or an unincorporated body of persons shall be issued in the name of the partnership or body.

(5)The [F72OFT] may issue a group licence only if it appears to [F77it] that the public interest is better served by doing so than by obliging the persons concerned to apply separately for standard licences.

[F78(5A)A group licence to carry on a business may limit the activities it covers in any way the OFT thinks fit.]

(6)The persons covered by a group licence may be described by general words, whether or not coupled with the exclusion of named persons, or in any other way the [F72OFT] thinks fit.

(7)The fact that a person is covered by a group licence in respect of certain activities does not prevent a standard licence being issued to him in respect of those activities or any of them.

(8)A group licence issued on the application of any person shall be issued to that person, and general notice shall be given of the issue of any group licence (whether on application or not).

(9)F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)F79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F73Words in s. 22(1)(a) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(1)(a)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F75Words in s. 22(1)(b) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(1)(b)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F76S. 22(1A)-(1E) inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(2)}, 71(2); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

F78S. 22(5A) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {33(2)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Modifications etc. (not altering text)

C8S. 22 extended (1.1.1993) by S.I. 1992/3218, reg. 57(1)

S. 22 extended (1.1.1996) by S.I. 1995/3275, reg. 34(1)

23 Authorisation of specific activities.E+W+S+N.I.

(1)Subject to [F80the terms of the licence] , a licence to carry on a business covers all lawful activities done in the course of that business, whether by the licensee or other persons on his behalf.

(2)F81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)A licence covers the canvassing off trade premises of debtor-creditor-supplier agreements or regulated consumer hire agreements only if, and to the extent that, the licence specifically so provides; and such provision shall not be included in a group licence.

(4)[F82The OFT may by general notice specify] other activities which, if engaged in by or on behalf of the person carrying on a business, require to be covered by an express term in his licence.

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Amendments (Textual)

F80Words in s. 23(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {33(3)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F82Words in s. 23(4) substituted (1.12.2007) by Consumer Credit Act 2006 (c. 14), ss. {33(4)}, 71(2); S.I. 2007/3300, art. 3(1), Sch. 1

24 Control of name of business.E+W+S+N.I.

A standard licence authorises the licensee to carry on a business under the name or names specified in the licence, but not under any other name.

[F8324AApplications for standard licencesE+W+S+N.I.
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Amendments (Textual)

F83S. 24A inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {28}, 71(2); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

(1)An application for a standard licence shall, in relation to each type of business which is covered by the application, state whether the applicant is applying—

(a)for the licence to cover the carrying on of that type of business with no limitation; or

(b)for the licence to cover the carrying on of that type of business only so far as it falls within one or more descriptions of business.

(2)An application within subsection (1)(b) in relation to a type of business shall set out the description or descriptions of business in question.

(3)References in this Part to a type of business are references to a type of business within subsection (4).

(4)The types of business within this subsection are—

(a)a consumer credit business;

(b)a consumer hire business;

(c)a business so far as it comprises or relates to credit brokerage;

(d)a business so far as it comprises or relates to debt-adjusting;

(e)a business so far as it comprises or relates to debt-counselling;

(f)a business so far as it comprises or relates to debt-collecting;

(g)a business so far as it comprises or relates to debt administration;

(h)a business so far as it comprises or relates to the provision of credit information services;

(i)a business so far as it comprises or relates to the operation of a credit reference agency.

(5)The OFT—

(a)shall by general notice specify the descriptions of business which can be set out in an application for the purposes of subsection (2) in relation to a type of business;

(b)may by general notice provide that applications within subsection (1)(b) cannot be made in relation to one or more of the types of business within subsection (4)(c) to (i).

(6)The power of the OFT under subsection (5) includes power to make different provision for different cases or classes of case.]

25 Licensee to be a fit person.E+W+S+N.I.

[F84(1)If an applicant for a standard licence—

(a)makes an application within section 24A(1)(a) in relation to a type of business, and

(b)satisfies the OFT that he is a fit person to carry on that type of business with no limitation,

he shall be entitled to be issued with a standard licence covering the carrying on of that type of business with no limitation.

(1AA)If such an applicant—

(a)makes an application within subsection (1)(b) of section 24A in relation to a type of business, and

(b)satisfies the OFT that he is a fit person to carry on that type of business so far as it falls within the description or descriptions of business set out in his application in accordance with subsection (2) of that section,

he shall be entitled to be issued with a standard licence covering the carrying on of that type of business so far as it falls within the description or descriptions in question.

(1AB)If such an applicant makes an application within section 24A(1)(a) or (b) in relation to a type of business but fails to satisfy the OFT as mentioned in subsection (1) or (1AA)(as the case may be), he shall nevertheless be entitled to be issued with a standard licence covering the carrying on of that type of business so far as it falls within one or more descriptions of business if—

(a)he satisfies the OFT that he is a fit person to carry on that type of business so far as it falls within the description or descriptions in question;

(b)he could have applied for the licence to be limited in that way; and

(c)the licence would not cover any activity which was not covered by his application.

(1AC)In this section ‘description of business’ means, in relation to a type of business, a description of business specified in a general notice under section 24A(5)(a).

(1AD)An applicant shall not, by virtue of this section, be issued with a licence unless he satisfies the OFT that the name or names under which he would be licensed is or are not misleading or otherwise undesirable.]

(1A)F85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F86(1B)If an application for the grant of a standard licence—

(a)is made by a person with permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits, and

(b)relates to a listed activity,

the Financial Services Authority may, if it considers that the [F87OFT] ought to refuse the application, notify him of that fact.

F86(1C)In subsection (1B) “listed activity ” means an activity listed in [F88Annex 1 to Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions [F89(as that Annex was last amended by Directive 2009/111/EC)]] or in [F90Annex I to the markets in financial instruments directive (2004/39/EC)] and references to deposits and to their acceptance must be read with—

(a)section 22 of the Financial Services and Markets Act 2000;

(b)any relevant order under that section; and

(c)Schedule 2 to that Act.

[F91(2)In determining whether an applicant for a licence is a fit person for the purposes of this section the OFT shall have regard to any matters appearing to it to be relevant including (amongst other things)—

(a)the applicant's skills, knowledge and experience in relation to consumer credit businesses, consumer hire businesses or ancillary credit businesses;

(b)such skills, knowledge and experience of other persons who the applicant proposes will participate in any business that would be carried on by him under the licence;

(c)practices and procedures that the applicant proposes to implement in connection with any such business;

(d)evidence of the kind mentioned in subsection (2A).

(2A)That evidence is evidence tending to show that the applicant, or any of the applicant's employees, agents or associates (whether past or present) or, where the applicant is a body corporate, any person appearing to the OFT to be a controller of the body corporate or an associate of any such person, has—

(a)committed any offence involving fraud or other dishonesty or violence;

(b)contravened any provision made by or under—

(i)this Act;

(ii)Part 16 of the Financial Services and Markets Act 2000 so far as it relates to the consumer credit jurisdiction under that Part;

(iii)any other enactment regulating the provision of credit to individuals or other transactions with individuals;

(c)contravened any provision in force in an EEA State which corresponds to a provision of the kind mentioned in paragraph (b);

(d)practised discrimination on grounds of sex, colour, race or ethnic or national origins in, or in connection with, the carrying on of any business; or

(e)engaged in business practices appearing to the OFT to be deceitful or oppressive or otherwise unfair or improper (whether unlawful or not).

(2B)For the purposes of subsection (2A)(e), the business practices which the OFT may consider to be deceitful or oppressive or otherwise unfair or improper include practices in the carrying on of a consumer credit business that appear to the OFT to involve irresponsible lending.]

(3)In subsection [F92(2A)] , “associate ”, in addition to the persons specified in section 184, includes a business associate.

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Amendments (Textual)

F84S. 25(1)-(1AD) substituted (6.4.2008) for s. 25(1) by Consumer Credit Act 2006 (c. 14), ss. {29(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F89Words in s. 25(1C) inserted (9.2.2011 for specified purposes and otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), Sch. 4 para. 1 (with reg. 3)

F91S. 25(2)-(2B) substituted (6.4.2008) for s. 25(2) by Consumer Credit Act 2006 (c. 14), ss. {29(2)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F92Word in s. 25(3) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {29(3)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Modifications etc. (not altering text)

C9S. 25, 25(2)(b) extended (1.1.1993) by S.I. 1992/3218, reg. 58(1)

S. 25 modified (1.1.1996) by S.I. 1995/3275, reg. 35

[F9325AGuidance on fitness testE+W+S+N.I.
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Amendments (Textual)

F93S. 25A inserted (1.12.2007) by Consumer Credit Act 2006 (c. 14), ss. {30}, 71(2) (with Sch. 3 para. 19); S.I. 2007/3300, art. 3(1), Sch. 1

(1)The OFT shall prepare and publish guidance in relation to how it determines, or how it proposes to determine, whether persons are fit persons as mentioned in section 25.

(2)If the OFT revises the guidance at any time after it has been published, the OFT shall publish it as revised.

(3)The guidance shall be published in such manner as the OFT thinks fit for the purpose of bringing it to the attention of those likely to be affected by it.

(4)In preparing or revising the guidance the OFT shall consult such persons as it thinks fit.

(5)In carrying out its functions under this Part the OFT shall have regard to the guidance as most recently published.]

[F9426 Conduct of businessE+W+S+N.I.

(1)Regulations may be made as to—

(a)the conduct by a licensee of his business; and

(b)the conduct by a consumer credit EEA firm of its business in the United Kingdom.

(2)The regulations may in particular specify—

(a)the books or other records to be kept by any person to whom the regulations apply;

(b)the information to be furnished by such a person to those persons with whom—

(i)that person does business, or

(ii)that person seeks to do business,

and the way in which that information is to be furnished.]

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Amendments (Textual)

F94S. 26 substituted (1.12.2001) by S.I. 2001/3649, art. 168

Issue of licencesE+W+S+N.I.

27 Determination of applications.E+W+S+N.I.

(1)Unless the [F95OFT] determines to issue a licence in accordance with an application [F96it] shall, before determining the application, by notice—

(a)inform the applicant, giving [F97its] reasons, that, as the case may be, [F96it] is minded to refuse the application, or to grant it in terms different from those applied for, describing them, and

(b)invite the applicant to submit to the [F95OFT] representations in support of his application in accordance with section 34.

(2)If the [F95OFT] grants the application in terms different from those applied for then, whether or not the applicant appeals, the [F95OFT] shall issue the licence in the terms approved by [F98it] unless the applicant by notice informs [F98it] that he does not desire a licence in those terms.

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Amendments (Textual)

[F9927AConsumer credit EEA firmsE+W+S+N.I.
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Amendments (Textual)

F99S. 27A inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {33(5)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

(1)Where—

(a)a consumer credit EEA firm makes an application for a standard licence, and

(b)the activities covered by the application are all permitted activities,

the OFT shall refuse the application.

(2)Subsection (3) applies where—

(a)a consumer credit EEA firm makes an application for a standard licence; and

(b)some (but not all) of the activities covered by the application are permitted activities.

(3)In order to be entitled to be issued with a standard licence in accordance with section 25(1) to (1AB) in relation to a type of business, the firm need not satisfy the OFT that it is a fit person to carry on that type of business so far as it would involve any of the permitted activities covered by the application.

(4)A standard licence held by a consumer credit EEA firm does not at any time authorise the carrying on of an activity which is a permitted activity at that time.

(5)In this section ‘permitted activity’ means, in relation to a consumer credit EEA firm, an activity for which the firm has, or could obtain, permission under paragraph 15 of Schedule 3 to the Financial Services and Markets Act 2000.]

28 Exclusion from group licence.E+W+S+N.I.

Where the [F100OFT] is minded to issue a group licence (whether on the application of any person or not), and in doing so to exclude any person from the group by name, [F101it] shall, before determining the matter,—

(a)give notice of that fact to the person proposed to be excluded, giving [F102its] reasons, and

(b)invite that person to submit to the [F100OFT] representations against his exclusion in accordance with section 34.

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Amendments (Textual)

[F103Charges for indefinite licencesE+W+S+N.I.

28ACharges to be paid by licensees etc. before end of payment periodsE+W+S+N.I.

(1)The licensee under a standard licence which has effect indefinitely shall, before the end of each payment period of his, pay the OFT a charge towards the costs of carrying out its functions under this Act.

(2)The original applicant for a group licence which has effect indefinitely shall, before the end of each payment period of his, pay the OFT such a charge.

(3)The amount of the charge payable by a person under subsection (1) or (2) before the end of a payment period shall be determined in accordance with provision which—

(a)is made by the OFT by general notice; and

(b)is current on such day as may be determined in accordance with provision made by regulations.

(4)The provision that may be made by the OFT under subsection (3)(a) includes—

(a)different provision in relation to persons of different descriptions (including persons whose payment periods end at different times);

(b)provision for no charge at all to be payable by persons of specified descriptions.

(5)The approval of the Secretary of State and the Treasury is required for a general notice under subsection (3)(a).

(6)For the purposes of this section a person's payment periods are to be determined in accordance with provision made by regulations.

28BExtension of period to pay charge under s. 28AE+W+S+N.I.
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Amendments (Textual)

F104S. 28B inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {36}, 71(2); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

(1)A person who is required under section 28A to pay a charge before the end of a period may apply once to the OFT for that period to be extended.

(2)The application shall be made before such day as may be determined in accordance with provision made by the OFT by general notice.

(3)If the OFT is satisfied that there is a good reason—

(a)why the applicant has not paid that charge prior to his making of the application, and

(b)why he cannot pay that charge before the end of that period,

it may, if it thinks fit, by notice to him extend that period by such time as it thinks fit having regard to that reason.

(4)The power of the OFT under this section to extend a period in relation to a charge—

(a)includes the power to extend the period in relation to a part of the charge only;

(b)may be exercised even though the period has ended.]

28CFailure to pay charge under s. 28AE+W+S+N.I.
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Amendments (Textual)

F105S. 28C inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {37(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

(1)This section applies if a person (the ‘defaulter’) fails to pay a charge—

(a)before the end of a period (the ‘payment period’) as required under section 28A; or

(b)where the payment period is extended under section 28B, before the end of the payment period as extended (subject to subsection (2)).

(2)Where the payment period is extended under section 28B in relation to a part of the charge only, this section applies if the defaulter fails—

(a)to pay so much of the charge as is not covered by the extension before the end of the payment period disregarding the extension; or

(b)to pay so much of the charge as is covered by the extension before the end of the payment period as extended.

(3)Subject to subsection (4), if the charge is a charge under section 28A(1), the defaulter's licence terminates.

(4)If the defaulter has applied to the OFT under section 28B for the payment period to be extended and that application has not been determined—

(a)his licence shall not terminate before the application has been determined and the OFT has notified him of the determination; and

(b)if the OFT extends the payment period on that application, this section shall have effect accordingly.

(5)If the charge is a charge under section 28A(2), the charge shall be recoverable by the OFT.]]

Renewal, variation, suspension and revocation of licencesE+W+S+N.I.

29 Renewal.E+W+S+N.I.

(1)If the licensee under a standard licence [F106of limited duration], or the original applicant for, or any licensee under, a group licence of limited duration, wishes the [F107OFT] to renew the licence, whether on the same terms (except as to expiry) or on varied terms, he must, during the period specified by the [F107OFT] by general notice or such longer period as the [F107OFT] may allow, make an application to the [F107OFT] for its renewal.

(2)The [F107OFT] may of [F108its] own motion renew any group licence.

(3)The preceding provisions of this Part apply to the renewal of a licence as they apply to the issue of a licence, except that section 28 does not apply to a person who was already excluded in the licence up for renewal.

[F109(3A)In its application to the renewal of standard licences by virtue of subsection (3) of this section, section 27(1) shall have effect as if for paragraph (b) there were substituted—

(b)invite the applicant to submit to the OFT in accordance with section 34 representations—

(i)in support of his application; and

(ii)about the provision (if any) that should be included under section 34A as part of the determination were the OFT to refuse the application or grant it in terms different from those applied for.]

(4)Until the determination of an application under subsection (1) and, where an appeal lies from the determination, until the end of the appeal period, the licence shall continue [F110to have effect], notwithstanding that apart from this subsection it would expire earlier.

(5)F111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)General notice shall be given of the renewal of a group licence.

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Amendments (Textual)

F106Words in s. 29(1) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(3)(a)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F109S. 29(3A) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(2)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F110Words in s. 29(4) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(3)(b)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F111S. 29(5) repealed (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(3)}, 70, 71(2), {Sch. 4}; S.I. 2007/3300, art. 3(2), Sch. 2

30 Variation by request.E+W+S+N.I.

[F112(1)If it thinks fit, the OFT may by notice to the licensee under a standard licence—

(a)in the case of a licence which covers the carrying on of a type of business only so far as it falls within one or more descriptions of business, vary the licence by—

(i)removing that limitation;

(ii)adding a description of business to that limitation; or

(iii)removing a description of business from that limitation;

(b)in the case of a licence which covers the carrying on of a type of business with no limitation, vary the licence so that it covers the carrying on of that type of business only so far as it falls within one or more descriptions of business;

(c)vary the licence so that it no longer covers the carrying on of a type of business at all;

(d)vary the licence so that a type of business the carrying on of which is not covered at all by the licence is covered either—

(i)with no limitation; or

(ii)only so far as it falls within one or more descriptions of business; or

(e)vary the licence in any other way except for the purpose of varying the descriptions of activities covered by the licence.

(1A)The OFT may vary a licence under subsection (1) only in accordance with an application made by the licensee.

(1B)References in this section to a description of business in relation to a type of business—

(a)are references to a description of business specified in a general notice under section 24A(5)(a); and

(b)in subsection (1)(a)(apart from sub-paragraph (ii)) include references to a description of business that was, but is no longer, so specified.]

(2)In the case of a group licence issued on the application of any person, the [F113OFT] , on an application made by that person, may if [F114it] thinks fit by notice to that person vary the terms of the licence in accordance with the application; but the [F113OFT] shall not vary a group licence under this subsection by excluding a named person, other than the person making the request, unless that named person consents in writing to his exclusion.

(3)In the case of a group licence from which (whether by name or description) a person is excluded, the [F113OFT] , on an application made by that person, may if [F114it] thinks fit, by notice to that person, vary the terms of the licence so as to remove the exclusion.

(4)Unless the [F113OFT] determines to vary a licence in accordance with an application [F114it] shall, before determining the application, by notice—

(a)inform the applicant, giving [F115its] reasons, that [F114it] is minded to refuse the application, and

(b)invite the applicant to submit to the [F113OFT] representations in support of his application in accordance with section 34.

(5)General notice shall be given that a variation of a group licence has been made under this section.

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Amendments (Textual)

F112S. 30(1)-(1B) substituted (6.4.2008) for s. 30(1) by Consumer Credit Act 2006 (c. 14), ss. {31(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

31 Compulsory variation.E+W+S+N.I.

(1)Where at a time during the currency of a licence the [F116OFT] is of the opinion that, if the licence had expired at that time [F117(assuming, in the case of a licence which has effect indefinitely, that it were a licence of limited duration)], [F118it] would, on an application for its renewal or further renewal on the same terms (except as to expiry), have been minded to grant the application but on different terms, and that therefore [F119it should take steps mentioned in subsection (1A)] , [F118it] shall proceed as follows.

[F120(1A)Those steps are—

(a)in the case of a standard licence, steps mentioned in section 30(1)(a)(ii) and (iii), (b), (c) and (e);

(b)in the case of a group licence, the varying of terms of the licence.]

[F121(1B)The OFT shall also proceed as follows if, having regard to section 22(1B) to (1E), it is of the opinion—

(a)that a licence which has effect indefinitely should have its duration limited; or

(b)in the case of a licence of limited duration, that the period during which it has effect should be shortened.]

(2)In the case of a standard licence the [F116OFT] shall, by notice—

(a)inform the licensee of the variations the [F116OFT] is minded to make in the terms of the licence, stating [F122its] reasons, and

[F123(b)invite him to submit to the OFT in accordance with section 34 representations—

(i)as to the proposed variations; and

(ii)about the provision (if any) that should be included under section 34A as part of the determination were the OFT to vary the licence.]

(3)In the case of a group licence the [F116OFT] shall—

(a)give general notice of the variations [F124it] is minded to make in the terms of the licence, stating [F125its] reasons, and

(b)in the notice invite any licensee to submit to [F126it] representations as to the proposed variations in accordance with section 34.

(4)In the case of a group licence issued on application the [F116OFT] shall also—

(a)inform the original applicant of the variations the [F116OFT] is minded to make in the terms of the licence, stating [F127its] reasons, and

(b)invite him to submit to the [F116OFT] representations as to the proposed variations in accordance with section 34.

(5)If the [F116OFT] is minded to vary a group licence by excluding any person (other than the original applicant) from the group by name the [F116OFT] shall, in addition, take the like steps under section 28 as are required in the case mentioned in that section.

(6)General notice shall be given that a variation of any group licence has been made under this section.

(7)A variation under this section shall not take effect before the end of the appeal period.

[F128(8)Subsection (1) shall have effect in relation to a standard licence as if an application could be made for the renewal or further renewal of the licence on the same terms (except as to expiry) even if such an application could not be made because of provision made in a general notice under section 24A(5).

(9)Accordingly, in applying subsection (1AA) of section 25 in relation to the licence for the purposes of this section, the OFT shall treat references in that subsection to the description or descriptions of business in relation to a type of business as references to the description or descriptions of business included in the licence in relation to that type of business, notwithstanding that provision under section 24A(5).]

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Amendments (Textual)

F117Words in s. 31(1) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(4)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F119Words in s. 31(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {31(2)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F120S. 31(1A) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {31(3)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F121S. 31(1B) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(5)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F123S. 31(2)(b) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(4)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

32 Suspension and revocation.E+W+S+N.I.

(1)Where at a time during the currency of a licence the [F129OFT] is of the opinion that if the licence had expired at that time [F130(assuming, in the case of a licence which has effect indefinitely, that it were a licence of limited duration)][F131it] would have been minded not to renew it, and that therefore it should be revoked or suspended, [F131it] shall proceed as follows.

(2)In the case of a standard licence the [F129OFT] shall, by notice—

(a)inform the licensee that, as the case may be, the [F129OFT] is minded to revoke the licence, or suspend it until a specified date or indefinitely, stating [F132its] reasons, and

[F133(b)invite him to submit to the OFT in accordance with section 34 representations—

(i)as to the proposed revocation or suspension; and

(ii)about the provision (if any) that should be included under section 34A as part of the determination were the OFT to revoke or suspend the licence.]

(3)In the case of a group licence the [F129OFT] shall—

(a)give general notice that, as the case may be, [F134it] is minded to revoke the licence, or suspend it until a specified date or indefinitely, stating [F135its] reasons, and

(b)in the notice invite any licensee to submit to [F136it] representations as to the proposed revocation or suspension in accordance with section 34.

(4)In the case of a group licence issued on application the [F129OFT] shall also—

(a)inform the original applicant that, as the case may be, the [F129OFT] is minded to revoke the licence, or suspend it until a specified date or indefinitely, stating [F137its] reasons, and

(b)invite him to submit representations as to the proposed revocation or suspension in accordance with section 34.

(5)F138. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)General notice shall be given of the revocation or suspension of a group licence.

(7)A revocation or suspension under this section shall not take effect before the end of the appeal period.

(8)Except for the purposes of section 29, a licensee under a suspended licence shall be treated, in respect of the period of suspension, as if the licence had not been issued; and where the suspension is not expressed to end on a specified date it may, if the [F129OFT] thinks fit, be ended by notice given by [F139it] to the licensee or, in the case of a group licence, by general notice.

[F140(9)The OFT has no power to revoke or to suspend a standard licence simply because, by virtue of provision made in a general notice under section 24A(5), a person cannot apply for the renewal of such a licence on terms which are the same as the terms of the licence in question.]

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Amendments (Textual)

F130Words in s. 32(1) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(6)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F133S. 32(2)(b) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(5)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F138S. 32(5) repealed (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(6)}, 70, 71(2), {Sch. 4}; S.I. 2007/3300, art. 3(2), Sch. 2

F140S. 32(9) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {31(5)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

33 Application to end suspension.E+W+S+N.I.

(1)On an application made by a licensee the [F141OFT] may, if [F142it] thinks fit, by notice to the licensee end the suspension of a licence, whether the suspension was for a fixed or indefinite period.

(2)Unless the [F141OFT] determines to end the suspension in accordance with the application [F142it] shall, before determining the application, by notice—

(a)inform the applicant, giving [F143its] reasons, that [F142it] is minded to refuse the application, and

(b)invite the applicant to submit to the [F141OFT] representations in support of his application in accordance with section 34.

(3)General notice shall be given that a suspension of a group licence has been ended under this section.

(4)In the case of a group licence issued on application—

(a)the references in subsection (1) to a licensee include the original applicant;

(b)the [F141OFT] shall inform the original applicant that a suspension of a group licence has been ended under this section.

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Amendments (Textual)

[F144Further powers of OFT to regulate conduct of licensees etc.E+W+S+N.I.

33APower of OFT to impose requirements on licenseesE+W+S+N.I.

(1)This section applies where the OFT is dissatisfied with any matter in connection with—

(a)a business being carried on, or which has been carried on, by a licensee or by an associate or a former associate of a licensee;

(b)a proposal to carry on a business which has been made by a licensee or by an associate or a former associate of a licensee; or

(c)any conduct not covered by paragraph (a) or (b) of a licensee or of an associate or a former associate of a licensee.

(2)The OFT may by notice to the licensee require him to do or not to do (or to cease doing) anything specified in the notice for purposes connected with—

(a)addressing the matter with which the OFT is dissatisfied; or

(b)securing that matters of the same or a similar kind do not arise.

(3)A requirement imposed under this section on a licensee shall only relate to a business which the licensee is carrying on, or is proposing to carry on, under the licence under which he is a licensee.

(4)Such a requirement may be framed by reference to a named person other than the licensee.

(5)For the purposes of subsection (1) it is immaterial whether the matter with which the OFT is dissatisfied arose before or after the licensee became a licensee.

(6)If—

(a)a person makes an application for a standard licence, and

(b)while dealing with that application the OFT forms the opinion that, if such a licence were to be issued to that person, it would be minded to impose on him a requirement under this section,

the OFT may, before issuing such a licence to that person, do (in whole or in part) anything that it must do under section 33D or 34(1) or (2) in relation to the imposing of the requirement.

(7)In this section ‘associate’, in addition to the persons specified in section 184, includes a business associate.]

[F14533BPower of OFT to impose requirements on supervisory bodiesE+W+S+N.I.
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Amendments (Textual)

F145S. 33B inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {39}, 71(2) (with Sch. 3 para. 21); S.I. 2007/3300, art. 3(2), Sch. 2

(1)This section applies where the OFT is dissatisfied with the way in which a responsible person in relation to a group licence—

(a)is regulating or otherwise supervising, or has regulated or otherwise supervised, persons who are licensees under that licence; or

(b)is proposing to regulate or otherwise to supervise such persons.

(2)The OFT may by notice to the responsible person require him to do or not to do (or to cease doing) anything specified in the notice for purposes connected with—

(a)addressing the matters giving rise to the OFT's dissatisfaction; or

(b)securing that matters of the same or a similar kind do not arise.

(3)A requirement imposed under this section on a responsible person in relation to a group licence shall only relate to practices and procedures for regulating or otherwise supervising licensees under the licence in connection with their carrying on of businesses under the licence.

(4)For the purposes of subsection (1) it is immaterial whether the matters giving rise to the OFT's dissatisfaction arose before or after the issue of the group licence in question.

(5)If—

(a)a person makes an application for a group licence, and

(b)while dealing with that application the OFT forms the opinion that, if such a licence were to be issued to that person, it would be minded to impose on him a requirement under this section,

the OFT may, before issuing such a licence to that person, do (in whole or in part) anything that it must do under section 33D or 34(1) or (2) in relation to the imposing of the requirement.

(6)For the purposes of this Part a person is a responsible person in relation to a group licence if—

(a)he is the original applicant for it; and

(b)he has a responsibility (whether by virtue of an enactment, an agreement or otherwise) for regulating or otherwise supervising persons who are licensees under the licence.]

[F14633CSupplementary provision relating to requirementsE+W+S+N.I.
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Amendments (Textual)

(1)A notice imposing a requirement under section 33A or 33B may include provision about the time at or by which, or the period during which, the requirement is to be complied with.

(2)A requirement imposed under section 33A or 33B shall not have effect after the licence by reference to which it is imposed has itself ceased to have effect.

(3)A person shall not be required under section 33A or 33B to compensate, or otherwise to make amends to, another person.

(4)The OFT may by notice to the person on whom a requirement has been imposed under section 33A or 33B vary or revoke the requirement (including any provision made under subsection (1) of this section in relation to it) with effect from such date as may be specified in the notice.

(5)The OFT may exercise its power under subsection (4) in relation to a requirement either on its own motion or on the application of a person falling within subsection (6) or (7) in relation to the requirement.

(6)A person falls within this subsection in relation to a requirement if he is the person on whom the requirement is imposed.

(7)A person falls within this subsection in relation to a requirement if—

(a)the requirement is imposed under section 33A;

(b)he is not the person on whom the requirement is imposed;

(c)the requirement is framed by reference to him by name; and

(d)the effect of the requirement is—

(i)to prevent him being an employee of the person on whom the requirement is imposed;

(ii)to restrict the activities that he may engage in as an employee of that person; or

(iii)otherwise to prevent him from doing something, or to restrict his doing something, in connection with a business being carried on by that person.]

[F14733DProcedure in relation to requirementsE+W+S+N.I.
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Amendments (Textual)

(1)Before making a determination—

(a)to impose a requirement on a person under section 33A or 33B,

(b)to refuse an application under section 33C(5) in relation to a requirement imposed under either of those sections, or

(c)to vary or to revoke a requirement so imposed,

the OFT shall proceed as follows.

(2)The OFT shall give a notice to every person to whom subsection (3) applies in relation to the determination—

(a)informing him, with reasons, that it is minded to make the determination; and

(b)inviting him to submit to it representations as to the determination under section 34.

(3)This subsection applies to a person in relation to the determination if he falls within, or as a consequence of the determination would fall within, section 33C(6) or (7) in relation to the requirement in question.

(4)This section does not require the OFT to give a notice to a person if the determination in question is in the same terms as a proposal made to the OFT by that person (whether as part of an application under this Part or otherwise).]

[F14833EGuidance on requirementsE+W+S+N.I.
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Amendments (Textual)

F148S. 33E inserted (1.12.2007) by Consumer Credit Act 2006 (c. 14), ss. {42}, 71(2) (with Sch. 3 para. 22); S.I. 2007/3300, art. 3(2), Sch. 2

(1)The OFT shall prepare and publish guidance in relation to how it exercises, or how it proposes to exercise, its powers under sections 33A to 33C.

(2)If the OFT revises the guidance at any time after it has been published, the OFT shall publish it as revised.

(3)The guidance shall be published in such manner as the OFT thinks fit for the purpose of bringing it to the attention of those likely to be affected by it.

(4)In preparing or revising the guidance the OFT shall consult such persons as it thinks fit.

(5)In exercising its powers under sections 33A to 33C the OFT shall have regard to the guidance as most recently published.]

MiscellaneousE+W+S+N.I.

34 Representations to [F149OFT].E+W+S+N.I.
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Amendments (Textual)

F149Words in s. 34 sidenote substituted (1.4.2003) by virtue of Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para 6(16)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

(1)Where this section applies to an invitation by the [F150OFT] to any person to submit representations, the [F150OFT] shall invite that person, within 21 days after the notice containing the invitation is given to him or published, or such longer period as the [F150OFT] may allow,—

(a)to submit his representations in writing to the [F150OFT] , and

(b)to give notice to the [F150OFT] , if he thinks fit, that he wishes to make representations orally,

and where notice is given under paragraph (b) the [F150OFT] shall arrange for the oral representations to be heard.

(2)In reaching [F151its] determination the [F150OFT] shall take into account any representations submitted or made under this section.

(3)The [F150OFT] shall give notice of [F151its] determination to the persons who were required to be invited to submit representations about it or, where the invitation to submit representations was required to be given by general notice, shall give general notice of the determination.

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Amendments (Textual)

[F15234AWinding-up of standard licensee's businessE+W+S+N.I.
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Amendments (Textual)

F152S. 34A inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

(1)If it thinks fit, the OFT may, for the purpose of enabling the licensee's business, or any part of his business, to be transferred or wound up, include as part of a determination to which subsection (2) applies provision authorising the licensee to carry on for a specified period—

(a)specified activities, or

(b)activities of specified descriptions,

which, because of that determination, the licensee will no longer be licensed to carry on.

(2)This subsection applies to the following determinations—

(a)a determination to refuse to renew a standard licence in accordance with the terms of the application for its renewal;

(b)a determination to vary such a licence under section 31;

(c)a determination to suspend or revoke such a licence.

(3)Such provision—

(a)may specify different periods for different activities or activities of different descriptions;

(b)may provide for persons other than the licensee to carry on activities under the authorisation;

(c)may specify requirements which must be complied with by a person carrying on activities under the authorisation in relation to those activities;

and, if a requirement specified under paragraph (c) is not complied with, the OFT may by notice to a person carrying on activities under the authorisation terminate the authorisation (in whole or in part) from a specified date.

(4)Without prejudice to the generality of paragraph (c) of subsection (3), a requirement specified under that paragraph may have the effect of—

(a)preventing a named person from being an employee of a person carrying on activities under the authorisation, or restricting the activities he may engage in as an employee of such a person;

(b)preventing a named person from doing something, or restricting his doing something, in connection with activities being carried on by a person under the authorisation;

(c)securing that access to premises is given to officers of the OFT for the purpose of enabling them to inspect documents or to observe the carrying on of activities.

(5)Activities carried on under an authorisation shall be treated for the purposes of sections 39(1), 40, 148 and 149 as if carried on under a standard licence.]

35 The register.E+W+S+N.I.

(1)The [F153OFT] shall establish and maintain a register, in which [F154it] shall cause to be kept particulars of—

(a)applications not yet determined for the issue, variation or renewal of licences, or for ending the suspension of a licence;

(b)licences which are in [F155effect], or have at any time been suspended or revoked [F156or terminated by section 28C], with details of any variation of the terms of a licence;

[F157(ba)requirements imposed under section 33A or 33B which are in effect or which have been in effect, with details of any variation of such a requirement;]

(c)decisions given by [F158it] under this Act, and any appeal from those decisions; and

(d)such other matters (if any) as [F154it] thinks fit.

[F159(1A)The [F153OFT] shall also cause to be kept in the register any copy of any notice or other document relating to a consumer credit EEA firm which is given to the [F153OFT] by the Financial Services Authority for inclusion in the register.]

(2)The [F153OFT] shall give general notice of the various matters required to be entered in the register, and of any change in them made under subsection (1)(d).

(3)Any person shall be entitled on payment of the specified fee—

(a)to inspect the register during ordinary office hours and take copies of any entry, or

(b)to obtain from the [F153OFT] a copy, certified by the [F153OFT] to be correct, of any entry in the register.

(4)The [F153OFT] may, if [F154it] thinks fit, determine that the right conferred by subsection (3)(a) shall be exercisable in relation to a copy of the register instead of, or in addition to, the original.

(5)The [F153OFT] shall give general notice of the place or places where, and times when, the register or a copy of it may be inspected.

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Amendments (Textual)

F155Word in s. 35(1)(b) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(7)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F156Words in s. 35(1)(b) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {37(2)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F159S. 35(1A) inserted (1.12.2001) by S.I. 2001/3649, art. 169

Modifications etc. (not altering text)

C10S. 35 extended (1.1.1993) by S.I. 1992/3218, reg. 60

S. 35 modified (1.1.1996) by S.I. 1995/3275, reg. 37

36 Duty to notify changes.E+W+S+N.I.

(1)Within 21 days working days after a change takes place in any particulars entered in the register in respect of a standard licence or the licensee under section 35(1)(d) (not being a change resulting from action taken by the [F160OFT]), the licensee shall give the [F160OFT] notice of the change; and the [F160OFT] shall cause any necessary amendment to be made in the register.

(2)Within 21 working days after—

(a)any change takes place in the officers of—

(i)a body corporate, or an unincorporated body of persons, which is the licensee under a standard licence, or

(ii)a body corporate which is a controller of a body corporate which is such a licensee, or

(b)a body corporate which is such a licensee becomes aware that a person has become or ceased to be a controller of the body corporate, or

(c)any change takes place in the members of a partnership which is such a licensee (including a change on the amalgamation of the partnership with another firm, or a change whereby the number of partners is reduced to one),

the licensee shall give the [F160OFT] notice of the change.

(3)Within 14 working days after any change takes place in the officers of a body corporate which is a controller of another body corporate which is a licensee under a standard licence, the controller shall give the licensee notice of the change.

(4)Within 14 working days after a person becomes or ceases to be a controller of a body corporate which is a licensee under a standard licence, that person shall give the licensee notice of the fact.

(5)Where a change in a partnership has the result that the business ceases to be carried on under the name, or any of the names, specified in a standard licence the licence shall cease to have effect.

(6)F161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

[F16236AFurther duties to notify changes etc.E+W+S+N.I.
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Amendments (Textual)

F162S. 36A inserted (1.12.2007 for specified purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {45}, 71(2) (with Sch. 3 para. 24); S.I. 2007/3300, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

(1)Subsections (2) to (4) apply where a general notice under section 6(2) comes into effect.

(2)A person who is the licensee under a standard licence or who is the original applicant for a group licence shall, in relation to each relevant application which he has made and which was determined before the general notice came into effect, provide the OFT with any information or document—

(a)which he would have been required to provide with the application had the application been made after the general notice came into effect; and

(b)which the general notice requires to be provided for the purposes of this subsection.

(3)Any such information or document shall be provided within such period as may be specified in the general notice.

(4)Subsection (2) does not require a person to provide any information or document—

(a)which he provided in relation to the application by virtue of section 6;

(b)which he has previously provided in relation to the application by virtue of this section; or

(c)which he would have been required to provide in relation to the application by virtue of subsection (5) but for subsection (6).

(5)A person who is the licensee under a standard licence or who is the original applicant for a group licence shall, in relation to each relevant application which he has made, notify the OFT giving details if, after the application is determined, any information or document which he—

(a)provided in relation to the application by virtue of section 6, or

(b)has so provided by virtue of this section,

is, to any extent, superseded or otherwise affected by a change in circumstances.

(6)Subsection (5) does not require a person to notify the OFT about a matter unless it falls within a description of matters specified by the OFT in a general notice.

(7)A description may be specified for the purposes of subsection (6) only if the OFT is satisfied that the matters which would fall within that description are matters which would be relevant to the question of—

(a)whether, having regard to section 25(2), a person is a fit person to carry on a business under a standard licence; or

(b)whether the public interest is better served by a group licence remaining in effect than by obliging the licensees under it to apply separately for standard licences.

(8)A person who is the licensee under a standard licence or who is the original applicant for a group licence shall, in relation to each relevant application which he has made, notify the OFT about every error or omission—

(a)in or from any information or document which he provided by virtue of section 6, or which he has provided by virtue of this section, in relation to the application; and

(b)of which he becomes aware after the determination of the application.

(9)A notification for the purposes of subsection (5) or (8) shall be given within the period of 28 days beginning with the day on which (as the case may be)—

(a)the information or document is superseded;

(b)the change in circumstances occurs; or

(c)the licensee or the original applicant becomes aware of the error or omission.

(10)This section does not require a person to notify the OFT about—

(a)anything of which he is required to notify it under section 36; or

(b)an error in or omission from any information or document which is a clerical error or omission not affecting the substance of the information or document.

(11)In this section ‘relevant application’ means, in relation to a person who is the licensee under a standard licence or who is the original applicant for a group licence—

(a)the original application for the licence; or

(b)an application for its renewal or for its variation.]

[F16336BPower of OFT to require information generallyE+W+S+N.I.
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Amendments (Textual)

(1)The OFT may by notice to a person require him—

(a)to provide such information as may be specified or described in the notice; or

(b)to produce such documents as may be so specified or described.

(2)The notice shall set out the reasons why the OFT requires the information or documents to be provided or produced.

(3)The information or documents shall be provided or produced—

(a)before the end of such reasonable period as may be specified in the notice; and

(b)at such place as may be so specified.

(4)A requirement may be imposed under subsection (1) on a person who is—

(a)the licensee under a standard licence, or

(b)the original applicant for a group licence,

only if the provision or production of the information or documents in question is reasonably required for purposes connected with the OFT's functions under this Act.

(5)A requirement may be imposed under subsection (1) on any other person only if—

(a)an act or omission mentioned in subsection (6) has occurred or the OFT has reason to suspect that such an act or omission has occurred; and

(b)the provision or production of the information or documents in question is reasonably required for purposes connected with—

(i)the taking by the OFT of steps under this Part as a consequence; or

(ii)its consideration of whether to take such steps as a consequence.

(6)Those acts or omissions are acts or omissions which—

(a)cast doubt on whether, having regard to section 25(2), a person is a fit person to carry on a business under a standard licence;

(b)cast doubt on whether the public interest is better served by a group licence remaining in effect, or being issued, than by obliging the persons who are licensees under it, or who would be licensees under it, to apply separately for standard licences;

(c)give rise, or are likely to give rise, to dissatisfaction for the purposes of section 33A(1) or 33B(1); or

(d)constitute or give rise to a failure of the kind mentioned in section 39A(1).]

[F16436CPower of OFT to require access to premisesE+W+S+N.I.
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Amendments (Textual)

(1)The OFT may by notice to a licensee under a licence require him to secure that access to the premises specified or described in the notice is given to an officer of an enforcement authority in order for the officer—

(a)to observe the carrying on of a business under the licence by the licensee; or

(b)to inspect such documents of the licensee relating to such a business as are—

(i)specified or described in the notice; and

(ii)situated on the premises.

(2)The notice shall set out the reasons why the access is required.

(3)The premises which may be specified or described in the notice—

(a)include premises which are not premises of the licensee if they are premises from which he carries on activities in connection with the business in question; but

(b)do not include premises which are used only as a dwelling.

(4)The licensee shall secure that the required access is given at such times as the OFT reasonably requires.

(5)The OFT shall give reasonable notice of those times.

(6)Where an officer is given access to any premises by virtue of this section, the licensee shall also secure that persons on the premises give the officer such assistance or information as he may reasonably require in connection with his observation or inspection of documents (as the case may be).

(7)The assistance that may be required under subsection (6) includes (amongst other things) the giving to the officer of an explanation of a document which he is inspecting.

(8)A requirement may be imposed under subsection (1) on a person who is—

(a)the licensee under a standard licence, or

(b)the original applicant for a group licence,

only if the observation or inspection in question is reasonably required for purposes connected with the OFT's functions under this Act.

(9)A requirement may be imposed under subsection (1) on any other person only if—

(a)an act or omission mentioned in section 36B(6) has occurred or the OFT has reason to suspect that such an act or omission has occurred; and

(b)the observation or inspection in question is reasonably required for purposes connected with—

(i)the taking by the OFT of steps under this Part as a consequence; or

(ii)its consideration of whether to take such steps as a consequence.

(10)In this section—

(a)references to a licensee under a licence include, in relation to a group licence issued on application, references to the original applicant; and

(b)references to a business being carried on under a licence by a licensee include, in relation to the original applicant for a group licence, activities being carried on by him for the purpose of regulating or otherwise supervising (whether by virtue of an enactment, an agreement or otherwise) licensees under that licence in connection with their carrying on of businesses under that licence.]

[F16536DEntry to premises under warrantE+W+S+N.I.
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Amendments (Textual)

(1)A justice of the peace may issue a warrant under this section if satisfied on information on oath given on behalf of the OFT that there are reasonable grounds for believing that the following conditions are satisfied.

(2)Those conditions are—

(a)that there is on the premises specified in the warrant information or documents in relation to which a requirement could be imposed under section 36B; and

(b)that if such a requirement were to be imposed in relation to the information or documents—

(i)it would not be complied with; or

(ii)the information or documents would be tampered with.

(3)A warrant under this section shall authorise an officer of an enforcement authority—

(a)to enter the premises specified in the warrant;

(b)to search the premises and to seize and detain any information or documents appearing to be information or documents specified in the warrant or information or documents of a description so specified;

(c)to take any other steps which may appear to be reasonably necessary for preserving such information or documents or preventing interference with them; and

(d)to use such force as may be reasonably necessary.

(4)An officer entering premises by virtue of this section may take such persons and equipment with him as he thinks necessary.

(5)In the application of this section to Scotland—

(a)the reference to a justice of the peace includes a reference to a sheriff;

(b)for ‘information on oath’ there is substituted ‘evidence on oath’.

(6)In the application of this section to Northern Ireland the reference to a justice of the peace shall be construed as a reference to a lay magistrate.]

[F16636EFailure to comply with information requirementE+W+S+N.I.
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Amendments (Textual)

(1)If on an application made by the OFT it appears to the court that a person (the ‘information defaulter’) has failed to do something that he was required to do by virtue of section 36B or 36C, the court may make an order under this section.

(2)An order under this section may require the information defaulter—

(a)to do the thing that it appears he failed to do within such period as may be specified in the order;

(b)otherwise to take such steps to remedy the consequences of the failure as may be so specified.

(3)If the information defaulter is a body corporate, a partnership or an unincorporated body of persons which is not a partnership, the order may require any officer who is (wholly or partly) responsible for the failure to meet such costs of the application as are specified in the order.

(4)In this section—

  • ‘court’ means—

    (a)

    in England and Wales and Northern Ireland, the High Court or the county court;

    (b)

    in Scotland, the Court of Session or the sheriff;

  • ‘officer’ means—

    (a)

    in relation to a body corporate, a person holding a position of director, manager or secretary of the body or any similar position;

    (b)

    in relation to a partnership or to an unincorporated body of persons, a member of the partnership or body.

(5)In subsection (4) ‘director’ means, in relation to a body corporate whose affairs are managed by its members, a member of the body.]

[F16736FOfficers of enforcement authorities other than OFTE+W+S+N.I.
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Amendments (Textual)

(1)A relevant officer may only exercise powers by virtue of section 36C or 36D in pursuance of arrangements made with the OFT by or on behalf of the enforcement authority of which he is an officer.

(2)Anything done or omitted to be done by, or in relation to, a relevant officer in the exercise or purported exercise of a power by virtue of section 36C or 36D shall be treated for all purposes as having been done or omitted to be done by, or in relation to, an officer of the OFT.

(3)Subsection (2) does not apply for the purposes of any criminal proceedings brought against the officer, the enforcement authority of which he is an officer or the OFT in respect of anything done or omitted to be done by the officer.

(4)A relevant officer shall not disclose to a person other than the OFT information obtained by his exercise of a power by virtue of section 36C or 36D unless—

(a)he has the approval of the OFT to do so; or

(b)he is under a duty to make the disclosure.

(5)In this section ‘relevant officer’ means an officer of an enforcement authority other than the OFT.]

37 Death, bankruptcy etc. of licensee.E+W+S+N.I.

(1)A licence held by one individual terminates if he—

(a)dies, or

(b)is adjudged bankrupt, or

[F168(c)becomes a person who lacks capacity (within the meaning of the Mental Capacity Act 2005) to carry on the activities covered by the licence.]

[F169(1A)A licence terminates if the licensee gives the OFT a notice under subsection (1B).

(1B)A notice under this subsection shall—

(a)be in such form as the OFT may by general notice specify;

(b)contain such information as may be so specified;

(c)be accompanied by the licence or give reasons as to why it is not accompanied by the licence; and

(d)be signed by or on behalf of the licensee.]

(2)In relation to a licence held by one individual, or a partnership or other unincorporated body of persons, or a body corporate, regulations may specify other events relating to the licensee on the occurrence of which the licence is to terminate.

(3)Regulations may—

(a)provide for the termination of a licence by subsection (1) [F170or (1A)] , or under subsection (2), to be deferred for a period not exceeding 12 months, and

(b)authorise the business of the licensee to be carried on under the licence by some other person during the period of deferment, subject to such conditions as may be prescribed.

(4)This section does not apply to group licences.

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Amendments (Textual)

F169S. 37(1A)(1B) inserted (16.6.2006 for certain purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(8)}, 71(2); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(2), Sch. 2

F170Words in s. 37(3)(a) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(9)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Modifications etc. (not altering text)

C11S. 37(1) amended by S.I. 1976/1002, reg. 3 (as substituted by S.I. 1981/614, reg. 2(b))

38 Application of s. 37 to Scotland and Northern Ireland.E+W+S+N.I.

(1)In the application of section 37 to Scotland the following shall be substituted for paragraphs (b) and (c) of subsection (1)—

(b)has his estate sequestrated, or

(c)becomes incapable of managing his own affairs.

(2)In the application of section 37 to Northern Ireland the following shall be substituted for subsection (1)—

(1)A licence held by one individual terminates if—

(a)he dies, or

(b)he is adjudged bankrupt or his estate and effects vest in the official assignee under section 349 of the Irish Bankrupt and Insolvent Act 1857, or

(c)a declaration is made under section 15 of the Lunacy Regulation (Ireland) Act 1871 that he is of unsound mind and incapable of managing his person or property, or an order is made under section 68 of that Act in consequence of its being found that he is of unsound mind and incapable of managing his affairs..

39 Offences against Part III.E+W+S+N.I.

(1)A person who engages in any activities for which a licence is required when he is not a licensee under a licence covering those activities commits an offence.

(2)A licensee under a standard licence who carries on business under a name not specified in the licence commits an offence.

(3)A person who fails to give the [F171OFT] or a licensee notice under section 36 within the period required commits an offence.

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Amendments (Textual)

Modifications etc. (not altering text)

C14S. 39(1) excluded (9.2.2011 for specified purposes and otherwise 30.4.2011) by The Electronic Money Regulations 2011 (S.I. 2011/99), reg. 31(2) (with reg. 3)

[F17239APower of OFT to impose civil penaltiesE+W+S+N.I.
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Amendments (Textual)

(1)Where the OFT is satisfied that a person (the ‘defaulter’) has failed or is failing to comply with a requirement imposed on him by virtue of section 33A, 33B or 36A, it may by notice to him (a ‘penalty notice’) impose on him a penalty of such amount as it thinks fit.

(2)The penalty notice shall—

(a)specify the amount of the penalty that is being imposed;

(b)set out the OFT's reasons for imposing a penalty and for specifying that amount;

(c)specify how the payment of the penalty may be made to the OFT; and

(d)specify the period within which the penalty is required to be paid.

(3)The amount of the penalty shall not exceed £50,000.

(4)The period specified in the penalty notice for the purposes of subsection (2)(d) shall not end earlier than the end of the period during which an appeal may be brought against the imposition of the penalty under section 41.

(5)If the defaulter does not pay the penalty to the OFT within the period so specified—

(a)the unpaid balance from time to time shall carry interest at the rate for the time being specified in section 17 of the Judgments Act 1838; and

(b)the penalty and any interest payable on it shall be recoverable by the OFT.]

[F17339BFurther provision relating to civil penaltiesE+W+S+N.I.
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Amendments (Textual)

F173S. 39B inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {53(1)}, 71(2)

(1)Before determining to impose a penalty on a person under section 39A the OFT shall give a notice to that person—

(a)informing him that it is minded to impose a penalty on him;

(b)stating the proposed amount of the penalty;

(c)setting out its reasons for being minded to impose a penalty on him and for proposing that amount;

(d)setting out the proposed period for the payment of the penalty; and

(e)inviting him to submit representations to it about the matters mentioned in the preceding paragraphs in accordance with section 34.

(2)In determining whether and how to exercise its powers under section 39A in relation to a person's failure, the OFT shall have regard to (amongst other things)—

(a)any penalty or fine that has been imposed on that person by another body in relation to the conduct giving rise to the failure;

(b)other steps that the OFT has taken or might take under this Part in relation to that conduct.

(3)General notice shall be given of the imposition of a penalty under section 39A on a person who is a responsible person in relation to a group licence.

(4)That notice shall include the matters set out in the notice imposing the penalty in accordance with section 39A(2)(a) and (b).]

[F17439CStatement of policy in relation to civil penaltiesE+W+S+N.I.
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Amendments (Textual)

F174S. 39C inserted (1.12.2007) by Consumer Credit Act 2006 (c. 14), ss. {54}, 71(2) (with Sch. 3 para. 25); S.I. 2007/3300, art. 3(1), Sch. 1

(1)The OFT shall prepare and publish a statement of policy in relation to how it exercises, or how it proposes to exercise, its powers under section 39A.

(2)If the OFT revises the statement of policy at any time after it has been published, the OFT shall publish it as revised.

(3)No statement of policy shall be published without the approval of the Secretary of State.

(4)The statement of policy shall be published in such manner as the OFT thinks fit for the purpose of bringing it to the attention of those likely to be affected by it.

(5)In preparing or revising the statement of policy the OFT shall consult such persons as it thinks fit.

(6)In determining whether and how to exercise its powers under section 39A in relation to a person's failure, the OFT shall have regard to the statement of policy as most recently published at the time the failure occurred.

(7)The OFT shall not impose a penalty on a person under section 39A in relation to a failure occurring before it has published a statement of policy.]

40 Enforcement of agreements made by unlicensed trader.E+W+S+N.I.

[F175(1)A regulated agreement is not enforceable against the debtor or hirer by a person acting in the course of a consumer credit business or a consumer hire business (as the case may be) if that person is not licensed to carry on a consumer credit business or a consumer hire business (as the case may be) of a description which covers the enforcement of the agreement.

(1A)Unless the OFT has made an order under subsection (2) which applies to the agreement, a regulated agreement is not enforceable against the debtor or hirer if—

(a)it was made by the creditor or owner in the course of a consumer credit business or a consumer hire business (as the case may be); and

(b)at the time the agreement was made he was not licensed to carry on a consumer credit business or a consumer hire business (as the case may be) of a description which covered the making of the agreement.

(2)Where—

(a)during any period a person (the ‘trader’ has made regulated agreements in the course of a consumer credit business or a consumer hire business (as the case may be), and

(b)during that period he was not licensed to carry on a consumer credit business or a consumer hire business (as the case may be) of a description which covered the making of those agreements,

he or his successor in title may apply to the OFT for an order that the agreements are to be treated for the purposes of subsection (1A) as if he had been licensed as required.]

(3)Unless the [F176OFT] determines to make an order under subsection (2) in accordance with the application, [F177it] shall, before determining the application, by notice—

(a)inform the applicant, giving [F178its] reasons, that, as the case may be, [F177it] is minded to refuse the application, or to grant it in terms different from those applied for, describing them, and

(b)invite the applicant to submit to the [F176OFT] representations in support of his application in accordance with section 34.

(4)In determining whether or not to make an order under subsection (2) in respect of any period the [F176OFT] shall consider, in addition to any other relevant factors—

(a)how far, if at all, debtors or hirers under [F179the regulated agreements in question] were prejudiced by the trader’s conduct,

(b)whether or not the [F176OFT] would have been likely to grant a licence covering [F180the making of those agreements during] that period on an application by the trader, and

(c)the degree of culpability for the failure to [F181be licensed as required] .

(5)If the [F176OFT] thinks fit, [F182it] may in an order under subsection (2)—

(a)limit the order to specified agreements, or agreements of a specified description or made at a specified time;

(b)make the order conditional on the doing of specified acts by the applicant.

[F183(6)This section [F184(apart from subsection (1))] does not apply to a regulated agreement F185. . . made by a consumer credit EEA firm unless at the time it was made that firm was precluded from entering into it as a result of—

(a)a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or

(b)a restriction imposed on the firm under section 204 of that Act.]

[F186(7)Subsection (1) does not apply to the enforcement of a regulated agreement by a consumer credit EEA firm unless that firm is precluded from enforcing it as a result of a prohibition or restriction mentioned in subsection (6)(a) or (b).

(8)This section (apart from subsection (1)) does not apply to a regulated agreement made by a person if by virtue of section 21(2) or (3) he was not required to be licensed to make the agreement.

(9)Subsection (1) does not apply to the enforcement of a regulated agreement by a person if by virtue of section 21(2) or (3) he is not required to be licensed to enforce the agreement.]

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Amendments (Textual)

F175S. 40(1)(1A)(2) substituted (6.4.2008) for s. 40(1)(2) by Consumer Credit Act 2006 (c. 14), ss. {26(1)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F179Words in s. 40(4)(a) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {26(2)(a)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F180Words in s. 40(4)(b) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {26(2)(b)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F181Words in s. 40(4)(c) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {26(2)(c)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F183S. 40(6) inserted (1.12.2001) by S.I. 2001/3649, art. 170

F184Words in s. 40(6) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {26(3)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

Modifications etc. (not altering text)

C15S. 40 restricted (1.1.1993) by S.I. 1992/3218, reg. 61(1)

S. 40 modified (1.1.1996) by S.I. 1995/3275, reg. 38(1)

[F187AppealsE+W+S+N.I.

40AThe Consumer Credit Appeals TribunalE+W+S+N.I.

F188. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

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Amendments (Textual)

F19041 Appeals to [F189First-tier Tribunal] under Part III.E+W+S+N.I.
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Amendments (Textual)

(1)If, in the case of a determination by the [F191OFT ]such as is mentioned in column 1 of the table set out at the end of this section, a person mentioned in relation to that determination in column 2 of the table is aggrieved by the determination he may, within the [F192specified period, appeal to the [F193First-tier Tribunal]].

(1A)F194. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1B)F194. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1C)F194. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1D)F194. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2)F195. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)F196. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)F197. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)F198. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TABLE
DeterminationAppellant
Refusal to issue, renew or vary licence in accordance with terms of application.The applicant.
Exclusion of person from group licence.The person excluded.
F199. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F199. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compulsory variation, or suspension or revocation, of standard licence.The licensee.
Compulsory variation, or suspension or revocation, of group licence.The original applicant or any licensee.
Refusal to end suspension of licence in accordance with terms of application.The applicant.

[F200Determination—

(a)

to impose a requirement under section 33A or 33B;

(b)

to refuse an application under section 33C(5) in relation to a requirement imposed under either of those sections; or

(c)

to vary or revoke a requirement so imposed.

A person who falls within section 33C(6) or (7) in relation to the requirement unless the OFT was not required to give a notice to him in relation to the determination by virtue of section 33D(4).]
[F201Imposition of penalty under section 39A.The person on whom the penalty is imposed.]
Refusal to make order under section 40(2) [F202, 148(2) or 149(2)] in accordance with terms of application.The applicant.
[F203Imposition of, or refusal to withdraw, consumer credit prohibition under section 203 of the Financial Services and Markets Act 2000.The consumer credit EEA firm concerned.
Imposition of, or refusal to withdraw, a restriction under section 204 of the Financial Services and Markets Act 2000.The consumer credit EEA firm concerned.]
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Amendments (Textual)

F190By S.I. 1992/3218, reg. 18(6), Sch. 5 para. 5 it is provided that section 41 shall have effect (1.1.1993) as if -(a) the following determinations were mentioned in column 1 of the table set out at the end of that section, namely -(i) imposition of a prohibition or restriction or the variation of a restriction; and(ii) refusal of an application for the revocation of a prohibition or restriction; and (b) the European institution concerned were mentioned in column 2 of that table in relation to those determinations

F192Words in s. 41(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {56(1)}, 71(2) (with Sch. 3 para. 27(1)); S.I. 2007/3300, art. 3(2), Sch. 2

F203Entries in s. 41 Table inserted (1.12.2001) by S.I. 2001/3649, art. 171

Modifications etc. (not altering text)

C16S. 41 extended (1.1.1996) by S.I. 1996/3275, reg. 15(6), sch. 5 para. 5

S. 41 applied (with modifications) (1.12.2001) by 2000 c. 8, s. 203(8), Sch. 16 para. 5; S.I. 2001/3538, art. 2(1)

C17S. 41: power to transfer functions conferred (19.9.2007) by Tribunals, Courts and Enforcement Act 2007 (c. 15), ss. 30, 35, 148; S.I. 2007/2709, art. 2(a)

[F20441ZATribunal Procedure Rules: suspension of OFT determinationsE+W+S+N.I.
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Amendments (Textual)

In the case of appeals to the First-tier Tribunal under section 41, Tribunal Procedure Rules may make provision for the suspension of determinations of the OFT.

41ZBDisposal of appealsE+W+S+N.I.

(1)The First-tier Tribunal shall decide an appeal under section 41 by way of a rehearing of the determination appealed against.

(2)In disposing of an appeal under section 41 the First-tier Tribunal may do one or more of the following—

(a)confirm the determination appealed against;

(b)quash that determination;

(c)vary that determination;

(d)remit the matter to the OFT for reconsideration and determination in accordance with the directions (if any) given to it by the tribunal;

(e)give the OFT directions for the purpose of giving effect to its decision.

(3)In the case of an appeal under section 41 against a determination to impose a penalty, the First-tier Tribunal—

(a)has no power by virtue of subsection (2)(c) to increase the penalty;

(b)may extend the period within which the penalty is to be paid (including in cases where that period has already ended).

(4)Subsection (3) does not affect—

(a)the tribunal's power to give directions to the OFT under subsection (2)(d); or

(b)what the OFT can do where a matter is remitted to it under subsection (2)(d).

(5)Where the First-tier Tribunal remits a matter to the OFT, it may direct that the requirements of section 34 of this Act are not to apply, or are only to apply to a specified extent, in relation to the OFT's reconsideration of the matter.

(6)Subject to subsections (7) and (8), where the First-tier Tribunal remits an application to the OFT, section 6(1) and (3) to (9) of this Act shall apply as if the application had not been previously determined by the OFT.

(7)In the case of a general notice which came into effect after the determination appealed against was made but before the application was remitted, the applicant shall provide any information or document which he is required to provide under section 6(6) within—

(a)the period of 28 days beginning with the day on which the application was remitted; or

(b)such longer period as the OFT may allow.

(8)In the case of—

(a)any information or document which was superseded,

(b)any change in circumstances which occurred, or

(c)any error or omission of which the applicant became aware,

after the determination appealed against was made but before the application was remitted, any notification that is required to be given by the applicant under section 6(7) shall be given within the period of 28 days beginning with the day on which the application was remitted.]

[F20541AAppeals from the Consumer Credit Appeals TribunalE+W+S+N.I.
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Amendments (Textual)

F205S. 41A inserted (1.12.2007 for specified purposes and otherwise 6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. 57, 71(2); S.I. 2007/3300, art. 3(1), 3(2), Sch. 1, Sch. 2

F206. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

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Amendments (Textual)

42F207. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.

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Amendments (Textual)

Part IV E+W+S+N.I. Seeking Business

AdvertisingE+W+S+N.I.

43 Advertisements to which Part IV applies.E+W+S+N.I.

(1)This Part applies to any advertisement, published for the purposes of a business carried on by the advertiser, indicating that he is willing—

(a)to provide credit, or

(b)to enter into an agreement for the bailment or (in Scotland) the hiring of goods by him.

(2)An advertisement does not fall within subsection (1) if the advertiser does not carry on—

(a)a consumer credit business or consumer hire business, or

(b)a business in the course of which he provides credit to individuals secured on land, or

(c)a business which comprises or relates to unregulated agreements where—

(i)the [F208law applicable to] the agreement is the law of a country outside the United Kingdom, and

(ii)if the [F208law applicable to] the agreement were the law of a part of the United Kingdom it would be a regulated agreement.

(3)An advertisement does not fall within subsection (1)(a) if it indicates—

(a)F209. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)that the credit is available only to a body corporate.

[F210(3A)An advertisement does not fall within subsection (1)(a) in so far as it is a communication of an invitation or inducement to engage in investment activity within the meaning of section 21 of the Financial Services and Markets Act 2000, other than an exempt generic communication.

F210(3B)An “exempt generic communication ” is a communication to which subsection (1) of section 21 of the Financial Services and Markets Act 2000 does not apply, as a result of an order under subsection (5) of that section, because it does not identify a person as providing an investment or as carrying on an activity to which the communication relates.]

(4)An advertisement does not fall within subsection (1)(b) if it indicates that the advertiser is not willing to enter into a consumer hire agreement.

(5)The Secretary of State may by order provide that this Part shall not apply to other advertisements of a description specified in the order.

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Amendments (Textual)

F209S. 43(3)(a) and word after it ceases to have effect (6.4.2008) and repealed (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {2(3)}, 70, 71(2), {Sch. 4}; S.I. 2007/3300, art. 3(2), Sch. 2

44 Form and content of advertisements.E+W+S+N.I.

(1)The Secretary of State shall make regulations as to the form and content of advertisements to which this Part applies, and the regulations shall contain such provisions as appear to him appropriate with a view to ensuring that, having regard to its subject-matter and the amount of detail included in it, an advertisement conveys a fair and reasonably comprehensive indication of the nature of the credit or hire facilities offered by the advertiser and of their true cost to persons using them.

(2)Regulations under subsection (1) may in particular—

(a)require specified information to be included in the prescribed manner in advertisements, and other specified material to be excluded;

(b)contain requirements to ensure that specified information is clearly brought to the attention of persons to whom advertisements are directed, and that one part of an advertisement is not given insufficient or excessive prominence compared with another.

45 Prohibition of advertisement where goods etc. not sold for cash.E+W+S+N.I.

If an advertisement to which this Part applies indicates that the advertiser is willing to provide credit under a restricted-use credit agreement relating to goods or services to be supplied by any person, but at the time when the advertisement is published that person is not holding himself out as prepared to sell the goods or provide the services (as the case may be) for cash, the advertiser commits an offence.

46 False or misleading advertisements.E+W+S+N.I.

F211. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F211S. 46 repealed (26.5.2008) by The Consumer Protection from Unfair Trading Regulations 2008 (S.I. 2008/1277) regs. 30(1)(3), Sch. 2 para. 18, {Sch. 4 Pt. 1} (with savings in reg. 28(2)(3))

47 Advertising infringements.E+W+S+N.I.

(1)Where an advertiser commits an offence against regulations made under section 44 or against section 45 F212. . . or would be taken to commit such an offence but for the defence provided by section 168, a like offence is committed by—

(a)the publisher of the advertisement, and

(b)any person who, in the course of a business carried on by him, devised the advertisement, or a part of it relevant to the first-mentioned offence, and

(c)where the advertiser did not procure the publication of the advertisement, the person who did procure it.

(2)In proceedings for an offence under subsection (1)(a) it is a defence for the person charged to prove that—

(a)the advertisement was published in the course of a business carried on by him, and

(b)he received the advertisement in the course of that business, and did not know and had no reason to suspect that its publication would be an offence under this Part.

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Amendments (Textual)

F212Words in s. 47 repealed (26.5.2008) by The Consumer Protection from Unfair Trading Regulations 2008 (S.I. 2008/1277) reg. 30(3), {Sch. 4 Pt. 1} (with savings in reg. 28(2)(3))

Modifications etc. (not altering text)

C19S. 47(1) excluded (temp.) by S.I. 1989/1125, reg. 10(1)

Canvassing etc.E+W+S+N.I.

48 Definition of canvassing off trade premises (regulated agreements).E+W+S+N.I.

(1)An individual (the “canvasser ”) canvasses a regulated agreement off trade premises if he solicits the entry (as debtor or hirer) of another individual (the “consumer ”) into the agreement by making oral representations to the consumer, or any other individual, during a visit by the canvasser to any place (not excluded by subsection (2)) where the consumer, or that other individual, as the case may be, is, being a visit—

(a)carried out for the purpose of making such oral representations to individuals who are at that place, but

(b)not carried out in response to a request made on a previous occasion.

(2)A place is excluded from subsection (1) if it is a place where a business is carried on (whether on a permanent or temporary basis) by—

(a)the creditor or owner, or

(b)a supplier, or

(c)the canvasser, or the person whose employee or agent the canvasser is, or

(d)the consumer.

49 Prohibition of canvassing debtor-creditor agreements off trade premises.E+W+S+N.I.

(1)It is an offence to canvass debtor-creditor agreements off trade premises.

(2)It is also an offence to solicit the entry of an individual (as debtor) into a debtor-creditor agreement during a visit carried out in response to a request made on a previous occasion, where—

(a)the request was not in writing signed by or on behalf of the person making it, and

(b)if no request for the visit had been made, the soliciting would have constituted the canvassing of a debtor-creditor agreement off trade premises.

(3)Subsections (1) and (2) do not apply to any soliciting for an agreement enabling the debtor to overdraw on a current account of any description kept with the creditor, where—

(a)the [F213OFT] has determined that current accounts of that description kept with the creditor are excluded from subsections (1) and (2), and

(b)the debtor already keeps an account with the creditor (whether a current account or not).

(4)A determination under subsection (3)(a)—

(a)may be made subject to such conditions as the [F213OFT] thinks fit, and

(b)shall be made only where the [F213OFT] is of opinion that it is not against the interests of debtors.

(5)If soliciting is done in breach of a condition imposed under subsection (4)(a), the determination under subsection (3)(a) does not apply to it.

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Amendments (Textual)

50 Circulars to minors. E+W+S+N.I.
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Modifications etc. (not altering text)

(1)A person commits an offence, who, with a view to financial gain, sends to a minor any document inviting him to—

(a)borrow money, or

(b)obtain goods on credit or hire, or

(c)obtain services on credit, or

(d)apply for information or advice on borrowing money or otherwise obtaining credit, or hiring goods.

(2)In proceedings under subsection (1) in respect of the sending of a document to a minor, it is a defence for the person charged to prove that he did not know, and had no reasonable cause to suspect, that he was a minor.

(3)Where a document is received by a minor at any school or other educational establishment for minors, a person sending it to him at that establishment knowing or suspecting it to be such an establishment shall be taken to have reasonable cause to suspect that he is a minor.

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Modifications etc. (not altering text)

51 Prohibition of unsolicited credit-tokens.E+W+S+N.I.

(1)It is an offence to give a person a credit-token if he has not asked for it.

(2)To comply with subsection (1) a request must be contained in a document signed by the person making the request, unless the credit-token agreement is a small debtor-creditor-supplier agreement.

(3)Subsection (1) does not apply to the giving of a credit-token to a person—

(a)for use under a credit-token agreement already made, or

(b)in renewal or replacement of a credit-token previously accepted by him under a credit-token agreement which continues in force, whether or not varied.

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Modifications etc. (not altering text)

Prospective

[F21451ARestrictions on provision of credit card chequesE+W+S+N.I.
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Amendments (Textual)

(1)A person who provides credit card cheques otherwise than in accordance with this section commits an offence.

(2)Credit card cheques may be provided only to a person who has asked for them.

(3)They may be provided only on a single occasion in respect of each request that is made.

(4)The number of cheques provided in respect of a request must not exceed three (or, if less, the number requested).

(5)Where a single request is made for the provision of credit card cheques in connection with more than one credit-token agreement, subsections (3) and (4) apply as if a separate request had been made in relation to each agreement.

(6)Where more than one request for the provision of cheques is made in the same document or at the same time—

(a)they may be provided in respect of only one of the requests, but

(b)if the requests relate to more than one credit-token agreement, in relation to each agreement they may be provided only in respect of one of the requests made in relation to that agreement.

(7)Credit card cheque” means a cheque (whether or not drawn on a banker) which, whenever used, will result in the provision of credit under a credit-token agreement.

(8)Accordingly, “credit card cheque” does not include a cheque to be used only in connection with a current account.

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Modifications etc. (not altering text)

Prospective

51BSection 51A: exemption for businessE+W+S+N.I.

(1)Section 51A does not apply to credit card cheques provided in connection with a credit-token agreement that is entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the debtor.

(2)If a credit-token agreement includes a declaration made by the debtor to the effect that the agreement is entered into as mentioned in subsection (1), the agreement is treated for the purposes of that subsection as having been so entered into.

(3)Subsection (2) does not apply if, when the agreement is entered into—

(a)the creditor, or

(b)any person who has acted on behalf of the creditor in connection with the entering into of the agreement,

knows, or has reasonable cause to suspect, that the agreement is not entered into as mentioned in subsection (1).

(4)The Secretary of State may by order make provision about the form, content and signing of declarations for the purposes of subsection (2).

(5)Where an agreement has two or more creditors, references in subsection (3) to the creditor are to any one or more of them.]

MiscellaneousE+W+S+N.I.

52 Quotations.E+W+S+N.I.

(1)Regulations may be made—

(a)as to the form and content of any document (a “quotation ”) by which a person who carries on a consumer credit business or consumer hire business, or a business in the course of which he provides credit to individuals secured on land, gives prospective customers information about the terms on which he is prepared to do business;

(b)requiring a person carrying on such a business to provide quotations to such persons and in such circumstances as are prescribed.

(2)Regulations under subsection (1)(a) may in particular contain provisions relating to quotations such as are set out in relation to advertisements in section 44.

[F215(3)In this section, “quotation ” does not include—

(a)any document which is a communication of an invitation or inducement to engage in investment activity within the meaning of section 21 of the Financial Services and Markets Act 2000; or

(b)any document (other than one falling within paragraph (a)) provided by an authorised person (within the meaning of that Act) in connection with an agreement which would or might be an exempt agreement as a result of section 16(6C).]

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Amendments (Textual)

53 Duty to display information.E+W+S+N.I.

Regulations may require a person who carries on a consumer credit business or consumer hire business, or a business in the course of which he provides credit to individuals secured on land [F216(other than credit provided under an agreement which is an exempt agreement as a result of [F217section 16(6C)(a)])], to display in the prescribed manner, at any premises where the business is carried on to which the public have access, prescribed information about the business.

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Amendments (Textual)

F216Words in s. 53 inserted (1.9.2002) by S.I. 2001/544, arts. 2, 90(5); S.I. 2001/3538, art. 2

54 Conduct of business regulations.E+W+S+N.I.

Without prejudice to the generality of section 26, regulations under that section may include provisions further regulating the seeking of business by a [F218a person to whom the regulations apply] who carries on a consumer credit business or a consumer hire business.

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Amendments (Textual)

F218Words in s. 54 substituted (1.12.2001) by S.I. 2001/3649, art. 172

Modifications etc. (not altering text)

C25S. 54 extended (1.1.1993) by S.I. 1992/3218, reg. 59(2)

S. 54 extended (1.1.1996) by S.I. 1995/3275, reg. 36(2)

Part V E+W+S+N.I. Entry into Credit or Hire Agreements

Preliminary mattersE+W+S+N.I.

55 Disclosure of information.E+W+S+N.I.

(1)Regulations may require specified information to be disclosed in the prescribed manner to the debtor or hirer before a regulated agreement is made.

[F219(2)If regulations under subsection (1) are not complied with, the agreement is enforceable against the debtor or hirer on an order of the court only (and for these purposes a retaking of goods or land to which the agreement relates is an enforcement of the agreement).]

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Amendments (Textual)

[F22055APre-contractual explanations etcE+W+S+N.I.
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Amendments (Textual)

(1)Before a regulated consumer credit agreement, other than an excluded agreement, is made, the creditor must—

(a)provide the debtor with an adequate explanation of the matters referred to in subsection (2) in order to place him in a position enabling him to assess whether the agreement is adapted to his needs and his financial situation,

(b)advise the debtor—

(i)to consider the information which is required to be disclosed under section 55(1), and

(ii)where this information is disclosed in person to the debtor, that the debtor is able to take it away,

(c)provide the debtor with an opportunity to ask questions about the agreement, and

(d)advise the debtor how to ask the creditor for further information and explanation.

(2)The matters referred to in subsection (1)(a) are—

(a)the features of the agreement which may make the credit to be provided under the agreement unsuitable for particular types of use,

(b)how much the debtor will have to pay periodically and, where the amount can be determined, in total under the agreement,

(c)the features of the agreement which may operate in a manner which would have a significant adverse effect on the debtor in a way which the debtor is unlikely to foresee,

(d)the principal consequences for the debtor arising from a failure to make payments under the agreement at the times required by the agreement including legal proceedings and, where this is a possibility, repossession of the debtor's home, and

(e)the effect of the exercise of any right to withdraw from the agreement and how and when this right may be exercised.

(3)The advice and explanation may be given orally or in writing except as provided in subsection (4).

(4)Where the explanation of the matters specified in paragraphs (a), (b) or (e) of subsection (2) is given orally or in person to a debtor, the explanation of the matters specified in paragraphs (c) and (d) of that subsection, and the advice required to be given by subsection (1)(b), must be given orally to him.

(5)Subsections (1) to (4) do not apply to a creditor if a credit intermediary (see section 160A) has complied with those subsections in respect of the agreement.

(6)For the purposes of this section an agreement is an excluded agreement if it is—

(a)an agreement under which the creditor provides the debtor with credit which exceeds £60, 260, or

(b)an agreement secured on land.

(7)Where the regulated consumer credit agreement is an agreement under which a person takes an article in pawn—

(a)the obligation in subsection (1)(a) only relates to the matters listed in paragraphs (d) and (e) of subsection (2), and

(b)the obligations in subsection (1)(b) and (d) do not apply.]

[F22155BAssessment of creditworthinessE+W+S+N.I.
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Amendments (Textual)

(1)Before making a regulated consumer credit agreement, other than an excluded agreement, the creditor must undertake an assessment of the creditworthiness of the debtor.

(2)Before significantly increasing—

(a)the amount of credit to be provided under a regulated consumer credit agreement, other than an excluded agreement, or

(b)a credit limit for running-account credit under a regulated consumer credit agreement, other than an excluded agreement,

the creditor must undertake an assessment of the debtor's creditworthiness.

(3)A creditworthiness assessment must be based on sufficient information obtained from—

(a)the debtor, where appropriate, and

(b)a credit reference agency, where necessary.

(4)For the purposes of this section an agreement is an excluded agreement if it is—

(a)an agreement secured on land, or

(b)an agreement under which a person takes an article in pawn.]

[F22255CCopy of draft consumer credit agreementE+W+S+N.I.
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Amendments (Textual)

(1)Before a regulated consumer credit agreement, other than an excluded agreement, is made, the creditor must, if requested, give to the debtor without delay a copy of the prospective agreement (or such of its terms as have at that time been reduced to writing).

(2)Subsection (1) does not apply if at the time the request is made, the creditor is unwilling to proceed with the agreement.

(3)A breach of the duty imposed by subsection (1) is actionable as a breach of statutory duty.

(4)For the purposes of this section an agreement is an excluded agreement if it is—

(a)an agreement secured on land,

(b)an agreement under which a person takes an article in pawn,

(c)an agreement under which the creditor provides the debtor with credit which exceeds £60, 260, or

(d)an agreement entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

(5)Subsections (2) to (5) of section 16B (declaration by the debtor as to the purposes of the agreement)

apply for the purposes of subsection (4)(d).]

56 Antecedent negotiations.E+W+S+N.I.

(1)In this Act “antecedent negotiations ” means any negotiations with the debtor or hirer—

(a)conducted by the creditor or owner in relation to the making of any regulated agreement, or

(b)conducted by a credit-broker in relation to goods sold or proposed to be sold by the credit-broker to the creditor before forming the subject-matter of a debtor-creditor-supplier agreement within section 12(a), or

(c)conducted by the supplier in relation to a transaction financed or proposed to be financed by a debtor-creditor-supplier agreement within section 12(b) or (c),

and “negotiator ” means the person by whom negotiations are so conducted with the debtor or hirer.

(2)Negotiations with the debtor in a case falling within subsection (1)(b) or (c) shall be deemed to be conducted by the negotiator in the capacity of agent of the creditor as well as in his actual capacity.

(3)An agreement is void if, and to the extent that, it purports in relation to an actual or prospective regulated agreement—

(a)to provide that a person acting as, or on behalf of, a negotiator is to be treated as the agent of the debtor or hirer, or

(b)to relieve a person from liability for acts or omissions of any person acting as, or on behalf of, a negotiator.

(4)For the purposes of this Act, antecedent negotiations shall be taken to begin when the negotiator and the debtor or hirer first enter into communication (including communication by advertisement), and to include any representations made by the negotiator to the debtor or hirer and any other dealings between them.

57 Withdrawal from prospective agreement.E+W+S+N.I.

(1)The withdrawal of a party from a prospective regulated agreement shall operate to apply this Part to the agreement, any linked transaction and any other thing done in anticipation of the making of the agreement as it would apply if the agreement were made and then cancelled under section 69.

(2)The giving to a party of a written or oral notice which, however expressed, indicates the intention of the other party to withdraw from a prospective regulated agreement operates as a withdrawal from it.

(3)Each of the following shall be deemed to be the agent of the creditor or owner for the purpose of receiving a notice under subsection (2)—

(a)a credit-broker or supplier who is the negotiator in antecedent negotiations, and

(b)any person who, in the course of a business carried on by him, acts on behalf of the debtor or hirer in any negotiations for the agreement.

(4)Where the agreement, if made, would not be a cancellable agreement, subsection (1) shall nevertheless apply as if the contrary were the case.

58 Opportunity for withdrawal from prospective land mortgage.E+W+S+N.I.

(1)Before sending to the debtor or hirer, for his signature, an unexecuted agreement in a case where the prospective regulated agreement is to be secured on land (the “mortgaged land ”), the creditor or owner shall give the debtor or hirer a copy of the unexecuted agreement which contains a notice in the prescribed form indicating the right of the debtor or hirer to withdraw from the prospective agreement, and how and when the right is exercisable, together with a copy of any other document referred to in the unexecuted agreement.

(2)Subsection (1) does not apply to—

(a)a restricted-use credit agreement to finance the purchase of the mortgaged land, or

(b)an agreement for a bridging loan in connection with the purchase of the mortgaged land or other land.

59 Agreement to enter future agreement void.E+W+S+N.I.

(1)An agreement is void if, and to the extent that, it purports to bind a person to enter as debtor or hirer into a prospective regulated agreement.

(2)Regulations may exclude from the operation of subsection (1) agreements such as are described in the regulations.

Making the agreementE+W+S+N.I.

60 Form and content of agreements.E+W+S+N.I.

(1)The Secretary of State shall make regulations as to the form and content of documents embodying regulated agreements, and the regulations shall contain such provisions as appear to him appropriate with a view to ensuring that the debtor or hirer is made aware of—

(a)the rights and duties conferred or imposed on him by the agreement,

(b)the amount and rate of the total charge for credit (in the case of a consumer credit agreement),

(c)the protection and remedies available to him under this Act, and

(d)any other matters which, in the opinion of the Secretary of State, it is desirable for him to know about in connection with the agreement.

(2)Regulations under subsection (1) may in particular—

(a)require specified information to be included in the prescribed manner in documents, and other specified material to be excluded;

(b)contain requirements to ensure that specified information is clearly brought to the attention of the debtor or hirer, and that one part of a document is not given insufficient or excessive prominence compared with another.

(3)If, on an application made to the [F223OFT] by a person carrying on a consumer credit business or a consumer hire business, it appears to the [F223OFT] impracticable for the applicant to comply with any requirement of regulations under subsection (1) in a particular case, [F224it] may, by notice to the applicant direct that the requirement be waived or varied in relation to such agreements, and subject to such conditions (if any), as [F224it] may specify, and this Act and the regulations shall have effect accordingly.

(4)The [F223OFT] shall give a notice under subsection (3) only if [F224it] is satisfied that to do so would not prejudice the interests of debtors or hirers.

[F225(5)An application may be made under subsection (3) only if it relates to—

(a)a consumer credit agreement secured on land,

(b)a consumer credit agreement under which a person takes an article in pawn,

(c)a consumer credit agreement under which the creditor provides the debtor with credit which exceeds £60,260,

(d)a consumer credit agreement entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him, or

(e)a consumer hire agreement.

(6)Subsections (2) to (5) of section 16B (declaration by the debtor as to the purposes of the agreement) apply for the purposes of subsection (5)(d).]

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Amendments (Textual)

61 Signing of agreement.E+W+S+N.I.

(1)A regulated agreement is not properly executed unless—

(a)a document in the prescribed form itself containing all the prescribed terms and conforming to regulations under section 60(1) is signed in the prescribed manner both by the debtor or hirer and by or on behalf of the creditor or owner, and

(b)the document embodies all the terms of the agreement, other than implied terms, and

(c)the document is, when presented or sent to the debtor or hirer for signature, in such a state that all its terms are readily legible.

(2)In addition, where the agreement is one to which section 58(1) applies, it is not properly executed unless—

(a)the requirements of section 58(1) were complied with, and

(b)the unexecuted agreement was sent, for his signature, to the debtor or hirer [F226by an appropriate method] not less than seven days after a copy of it was given to him under section 58(1), and

(c)during the consideration period, the creditor or owner refrained from approaching the debtor or hirer (whether in person, by telephone or letter, or in any other way) except in response to a specific request made by the debtor or hirer after the beginning of the consideration period, and

(d)no notice of withdrawal by the debtor or hirer was received by the creditor or owner before the sending of the unexecuted agreement.

(3)In subsection (2)(c), “the consideration period ” means the period beginning with the giving of the copy under section 58(1) and ending—

(a)at the expiry of seven days after the day on which the unexecuted agreement is sent, for his signature, to the debtor or hirer, or

(b)on its return by the debtor or hirer after signature by him,

whichever first occurs.

(4)Where the debtor or hirer is a partnership or an unincorporated body of persons, subsection (1)(a) shall apply with the substitution for “by the debtor or hirer ” of “by or on behalf of the debtor or hirer ”.

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Amendments (Textual)

[F22761ADuty to supply copy of executed consumer credit agreementE+W+S+N.I.
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Amendments (Textual)

(1)Where a regulated consumer credit agreement, other than an excluded agreement, has been made, the creditor must give a copy of the executed agreement, and any other document referred to in it, to the debtor.

(2)Subsection (1) does not apply if—

(a)a copy of the unexecuted agreement (and of any other document referred to in it) has already been given to the debtor, and

(b)the unexecuted agreement is in identical terms to the executed agreement.

(3)In a case referred to in subsection (2), the creditor must inform the debtor in writing—

(a)that the agreement has been executed,

(b)that the executed agreement is in identical terms to the unexecuted agreement a copy of which has already been given to the debtor, and

(c)that the debtor has the right to receive a copy of the executed agreement if the debtor makes a request for it at any time before the end of the period referred to in section 66A(2).

(4)Where a request is made under subsection (3)(c) the creditor must give a copy of the executed agreement to the debtor without delay.

(5)If the requirements of this section are not observed, the agreement is not properly executed.

(6)For the purposes of this section, an agreement is an excluded agreement if it is—

(a)a cancellable agreement, or

(b)an agreement—

(i)secured on land,

(ii)under which the creditor provides the debtor with credit which exceeds £60,260, or

(iii)entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him,

unless the creditor or a credit intermediary has complied with or purported to comply with regulation 3(2) of the Consumer Credit (Disclosure of Information) Regulations 2010.

(7)Subsections (2) to (5) of section 16B (declaration by the debtor as to the purposes of the agreement) apply for the purposes of subsection (6)(b)(iii).]

[F22861BDuty to supply copy of overdraft agreementE+W+S+N.I.
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Amendments (Textual)

(1)Where an authorised business overdraft agreement or an authorised non-business overdraft agreement has been made, a document containing the terms of the agreement must be given to the debtor.

(2)The creditor must provide the document referred to in subsection (1) to the debtor before or at the time the agreement is made unless—

(a)the creditor has provided the debtor with the information referred to in regulation 10(3) of the Consumer Credit (Disclosure of Information) Regulations 2010, in which case it may be provided after the agreement is made,

(b)the creditor has provided the debtor with the information referred to in regulation 10(3)(c), (e), (f), (h) and (k) of those Regulations, in which case it must be provided immediately after the agreement is made, or

(c)the agreement is an agreement of a description referred to in regulation 10(4)(b) of those Regulations, in which case it must be provided immediately after the agreement is made.

(3)If the requirements of this section are not observed, the agreement is enforceable against the debtor on an order of the court only (and for these purposes a retaking of goods or land to which the agreement relates is an enforcement of the agreement).]

62 Duty to supply copy of unexecuted agreement [F229: excluded agreements].E+W+S+N.I.
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Amendments (Textual)

(1)If [F230in the case of a regulated agreement which is an excluded agreement] the unexecuted agreement is presented personally to the debtor or hirer for his signature, but on the occasion when he signs it the document does not become an executed agreement, a copy of it, and of any other document referred to in it, must be there and then delivered to him.

(2)If the unexecuted agreement is sent to the debtor or hirer for his signature, a copy of it, and of any other document referred to in it, must be sent to him at the same time.

(3)A regulated agreement [F231which is an excluded agreement] is not properly executed if the requirements of this section are not observed.

[F232(4)In this section, “excluded agreement” has the same meaning as in section 61A.]

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Amendments (Textual)

63 Duty to supply copy of executed agreement [F233: excluded agreements].E+W+S+N.I.
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Amendments (Textual)

(1)If [F234in the case of a regulated agreement which is an excluded agreement] the unexecuted agreement is presented personally to the debtor or hirer for his signature, and on the occasion when he signs it the document becomes an executed agreement, a copy of the executed agreement, and of any other document referred to in it, must be there and then delivered to him.

(2)A copy of the executed agreement, and of any other document referred to in it, must be given to the debtor or hirer within the seven days following the making of the agreement unless—

(a)subsection (1) applies, or

(b)the unexecuted agreement was sent to the debtor or hirer for his signature and, on the occasion of his signing it, the document became an executed agreement.

(3)In the case of a cancellable agreement, a copy under subsection (2) must be sent [F235by an appropriate method] .

(4)In the case of a credit-token agreement, a copy under subsection (2) need not be given within the seven days following the making of the agreement if it is given before or at the time when the credit-token is given to the debtor.

(5)A regulated agreement [F236which is an excluded agreement] is not properly executed if the requirements of this section are not observed.

[F237(6)In this section, “excluded agreement” has the same meaning as in section 61A.]

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Amendments (Textual)

64 Duty to give notice of cancellation rights.E+W+S+N.I.

(1)In the case of a cancellable agreement, a notice in the prescribed form indicating the right of the debtor or hirer to cancel the agreement, how and when that right is exercisable, and the name and address of a person to whom notice of cancellation may be given,—

(a)must be included in every copy given to the debtor or hirer under section 62 or 63, and

(b)except where section 63(2) applied, must also be sent [F238by an appropriate method] to the debtor or hirer within the seven days following the making of the agreement.

(2)In the case of a credit-token agreement, a notice under subsection (1)(b) need not be sent [F238by an appropriate method] within the seven days following the making of the agreement if either—

(a)it is sent [F238by an appropriate method] to the debtor or hirer before the credit-token is given to him, or

(b)it is sent [F238by an appropriate method] to him together with the credit-token.

(3)Regulations may provide that except where section 63(2) applied a notice sent under subsection (1)(b) shall be accompanied by a further copy of the executed agreement, and of any other document referred to in it.

(4)Regulations may provide that subsection (1)(b) is not to apply in the case of agreements such as are described in the regulations, being agreements made by a particular person, if—

(a)on an application by that person to the [F239OFT] , the [F239OFT] has determined that, having regard to—

(i)the manner in which antecedent negotiations for agreements with the applicant of that description are conducted, and

(ii)the information provided to debtors or hirers before such agreements are made,

the requirement imposed by subsection (1)(b) can be dispensed with without prejudicing the interests of debtors or hirers; and

(b)any conditions imposed by the [F239OFT] in making the determination are complied with.

(5)A cancellable agreement is not properly executed if the requirements of this section are not observed.

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Amendments (Textual)

65 Consequences of improper execution.E+W+S+N.I.

(1)An improperly-executed regulated agreement is enforceable against the debtor or hirer on an order of the court only.

(2)A retaking of goods or land to which a regulated agreement relates is an enforcement of the agreement.

66 Acceptance of credit-tokens.E+W+S+N.I.

(1)The debtor shall not be liable under a credit-token agreement for use made of the credit-token by any person unless the debtor had previously accepted the credit-token, or the use constituted an acceptance of it by him.

(2)The debtor accepts a credit-token when—

(a)it is signed, or

(b)a receipt for it is signed, or

(c)it is first used,

either by the debtor himself or by a person who, pursuant to the agreement, is authorised by him to use it.

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Modifications etc. (not altering text)

[F240Withdrawal from certain agreementsE+W+S+N.I.

66AWithdrawal from consumer credit agreementE+W+S+N.I.

(1)The debtor under a regulated consumer credit agreement, other than an excluded agreement, may withdraw from the agreement, without giving any reason, in accordance with this section.

(2)To withdraw from an agreement under this section the debtor must give oral or written notice of the withdrawal to the creditor before the end of the period of 14 days beginning with the day after the relevant day.

(3)For the purposes of subsection (2) the relevant day is whichever is the latest of the following—

(a)the day on which the agreement is made;

(b)where the creditor is required to inform the debtor of the credit limit under the agreement, the day on which the creditor first does so;

(c)in the case of an agreement to which section 61A (duty to supply copy of executed consumer credit agreement) applies, the day on which the debtor receives a copy of the agreement under that section or on which the debtor is informed as specified in subsection (3) of that section;

(d)in the case of an agreement to which section 63 (duty to supply copy of executed agreement: excluded agreements) applies, the day on which the debtor receives a copy of the agreement under that section.

(4)Where oral notice under this section is given to the creditor it must be given in a manner specified in the agreement.

(5)Where written notice under this section is given by facsimile transmission or electronically—

(a)it must be sent to the number or electronic address specified for the purpose in the agreement, and

(b)where it is so sent, it is to be regarded as having been received by the creditor at the time it is sent (and section 176A does not apply).

(6)Where written notice under this section is given in any other form—

(a)it must be sent by post to, or left at, the postal address specified for the purpose in the agreement, and

(b)where it is sent by post to that address, it is to be regarded as having been received by the creditor at the time of posting (and section 176 does not apply).

(7)Subject as follows, where the debtor withdraws from a regulated consumer credit agreement under this section—

(a)the agreement shall be treated as if it had never been entered into, and

(b)where an ancillary service relating to the agreement is or is to be provided by the creditor, or by a third party on the basis of an agreement between the third party and the creditor, the ancillary service contract shall be treated as if it had never been entered into.

(8)In the case referred to in subsection (7)(b) the creditor must without delay notify any third party of the fact that the debtor has withdrawn from the agreement.

(9)Where the debtor withdraws from an agreement under this section—

(a)the debtor must repay to the creditor any credit provided and the interest accrued on it (at the rate provided for under the agreement), but

(b)the debtor is not liable to pay to the creditor any compensation, fees or charges except any non-returnable charges paid by the creditor to a public administrative body.

(10)An amount payable under subsection (9) must be paid without undue delay and no later than the end of the period of 30 days beginning with the day after the day on which the notice of withdrawal was given (and if not paid by the end of that period may be recovered by the creditor as a debt).

(11)Where a regulated consumer credit agreement is a conditional sale, hire-purchase or credit-sale agreement and—

(a)the debtor withdraws from the agreement under this section after the credit has been provided, and

(b)the sum payable under subsection (9)(a) is paid in full by the debtor,

title to the goods purchased or supplied under the agreement is to pass to the debtor on the same terms as would have applied had the debtor not withdrawn from the agreement.

(12)In subsections (2), (4), (5), (6) and (9)(a) references to the creditor include a person specified by the creditor in the agreement.

(13)In subsection (7)(b) the reference to an ancillary service means a service that relates to the provision of credit under the agreement and includes in particular an insurance or payment protection policy.

(14)For the purposes of this section, an agreement is an excluded agreement if it is—

(a)an agreement for credit exceeding £60, 260,

(b)an agreement secured on land,

(c)a restricted-use credit agreement to finance the purchase of land, or

(d)an agreement for a bridging loan in connection with the purchase of land.]

Cancellation of certain agreements within cooling-off periodE+W+S+N.I.

67 Cancellable agreements.E+W+S+N.I.

[F241(1) Subject to subsection (2)] a regulated agreement may be cancelled by the debtor or hirer in accordance with this Part if the antecedent negotiations included oral representations made when in the presence of the debtor or hirer by an individual acting as, or on behalf of, the negotiator, unless—

(a)the agreement is secured on land, or is a restricted-use credit agreement to finance the purchase of land or is an agreement for a bridging loan in connection with the purchase of land, or

(b)the unexecuted agreement is signed by the debtor or hirer at premises at which any of the following is carrying on any business (whether on a permanent or temporary basis)—

(i)the creditor or owner;

(ii)any party to a linked transaction (other than the debtor or hirer or a relative of his);

(iii)the negotiator in any antecedent negotiations.

[F242(2) This section does not apply where section 66A applies.]

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Amendments (Textual)

F241S. 67 renumbered as s. 67(1) and words inserted (1.2.2011) by The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 14(a), 99(1) (with regs. 100, 101)

68 Cooling-off period.E+W+S+N.I.

The debtor or hirer may serve notice of cancellation of a cancellable agreement between his signing of the unexecuted agreement and—

(a)the end of the fifth day following the day on which he received a copy under section 63(2) or a notice under section 64(1)(b), or

(b)if (by virtue of regulations made under section 64(4)) section 64(1)(b) does not apply, the end of the fourteenth day following the day on which he signed the unexecuted agreement.

69 Notice of cancellation.E+W+S+N.I.

(1)If within the period specified in section 68 the debtor or hirer under a cancellable agreement serves on—

(a)the creditor or owner, or

(b)the person specified in the notice under section 64(1), or

(c)a person who (whether by virtue of subsection (6) or otherwise) is the agent of the creditor or owner,

a notice (a “notice of cancellation ”) which, however expressed and whether or not conforming to the notice given under section 64(1), indicates the intention of the debtor or hirer to withdraw from the agreement, the notice shall operate—

(i)to cancel the agreement, and any linked transaction, and

(ii)to withdraw any offer by the debtor or hirer, or his relative, to enter into a linked transaction.

(2)In the case of a debtor-creditor-supplier agreement for restricted-use credit financing—

(a)the doing of work or supply of goods to meet an emergency, or

(b)the supply of goods which, before service of the notice of cancellation, had by the act of the debtor or his relative become incorporated in any land or thing not comprised in the agreement or any linked transaction,

subsection (1) shall apply with the substitution of the following for paragraph (i)—

(i)to cancel only such provisions of the agreement and any linked transaction as—

(aa)relate to the provision of credit, or

(bb)require the debtor to pay an item in the total charge for credit, or

(cc)subject the debtor to any obligation other than to pay for the doing of the said work, or the supply of the said goods.

(3)Except so far as is otherwise provided, references in this Act to the cancellation of an agreement or transaction do not include a case within subsection (2).

(4)Except as otherwise provided by or under this Act, an agreement or transaction cancelled under subsection (1) shall be treated as if it had never been entered into.

(5)Regulations may exclude linked transactions of the prescribed description from subsection (1)(i) or (ii).

(6)Each of the following shall be deemed to be the agent of the creditor or owner for the purpose of receiving a notice of cancellation—

(a)a credit-broker or supplier who is the negotiator in antecedent negotiations, and

(b)any person who, in the course of a business carried on by him, acts on behalf of the debtor or hirer in any negotiations for the agreement.

[F243(7)Whether or not it is actually received by him, a notice of cancellation sent to a person shall be deemed to be served on him—

(a)in the case of a notice sent by post, at the time of posting, and

(b)in the case of a notice transmitted in the form of an electronic communication in accordance with section 176A(1), at the time of the transmission.]

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Amendments (Textual)

70 Cancellation: recovery of money paid by debtor or hirer.E+W+S+N.I.

(1)On the cancellation of a regulated agreement, and of any linked transaction,—

(a)any sum paid by the debtor or hirer, or his relative, under or in contemplation of the agreement or transaction, including any item in the total charge for credit, shall become repayable, and

(b)any sum, including any item in the total charge for credit, which but for the cancellation is, or would or might become, payable by the debtor or hirer, or his relative, under the agreement or transaction shall cease to be, or shall not become, so payable, and

(c)in the case of a debtor-creditor-supplier agreement falling within section 12(b), any sum paid on the debtor’s behalf by the creditor to the supplier shall become repayable to the creditor.

(2)If, under the terms of a cancelled agreement or transaction, the debtor or hirer, or his relative, is in possession of any goods, he shall have a lien on them for any sum repayable to him under subsection (1) in respect of that agreement or transaction, or any other linked transaction.

(3)A sum repayable under subsection (1) is repayable by the person to whom it was originally paid, but in the case of a debtor-creditor-supplier agreement falling within section 12(b) the creditor and the supplier shall be under a joint and several liability to repay sums paid by the debtor, or his relative, under the agreement or under a linked transaction falling within section 19(1)(b) and accordingly, in such a case, the creditor shall be entitled, in accordance with rules of court, to have the supplier made a party to any proceedings brought against the creditor to recover any such sums.

(4)Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (3), including costs reasonably incurred by him in defending proceedings instituted by the debtor.

(5)Subsection (1) does not apply to any sum which, if not paid by a debtor, would be payable by virtue of section 71, and applies to a sum paid or payable by a debtor for the issue of a credit-token only where the credit-token has been returned to the creditor or surrendered to a supplier.

(6)If the total charge for credit includes an item in respect of a fee or commission charged by a credit-broker, the amount repayable under subsection (1) in respect of that item shall be the excess over [F244£5] of the fee or commission.

(7)If the total charge for credit includes any sum payable or paid by the debtor to a credit-broker otherwise than in respect of a fee or commission charged by him, that sum shall for the purposes of subsection (6) be treated as if it were such a fee or commission.

(8)So far only as is necessary to give effect to section 69(2), this section applies to an agreement or transaction within that subsection as it applies to a cancelled agreement or transaction.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F244Amount "£5" substituted (1.5.1998) in s. 70(6) by S.I. 1998/997, art. 3, Sch.

71 Cancellation: repayment of credit.E+W+S+N.I.

(1)Notwithstanding the cancellation of a regulated consumer credit agreement, other than a debtor-creditor-supplier agreement for restricted-use credit, the agreement shall continue in force so far as it relates to repayment of credit and payment of interest.

(2)If, following the cancellation of a regulated consumer credit agreement, the debtor repays the whole or a portion of the credit—

(a)before the expiry of one month following service of the notice of cancellation, or

(b)in the case of a credit repayable by instalments, before the date on which the first instalment is due,

no interest shall be payable on the amount repaid.

(3)If the whole of a credit repayable by instalments is not repaid on or before the date specified in subsection (2)(b), the debtor shall not be liable to repay any of the credit except on receipt of a request in writing in the prescribed form, signed by or on behalf of the creditor, stating the amounts of the remaining instalments (recalculated by the creditor as nearly as may be in accordance with the agreement and without extending the repayment period), but excluding any sum other than principal and interest.

(4)Repayment of a credit, or payment of interest, under a cancelled agreement shall be treated as duly made if it is made to any person on whom, under section 69, a notice of cancellation could have been served, other than a person referred to in section 69(6)(b).

72 Cancellation: return of goods.E+W+S+N.I.

(1)This section applies where any agreement or transaction relating to goods, being—

(a)a restricted-use debtor-creditor-supplier agreement, a consumer hire agreement, or a linked transaction to which the debtor or hirer under any regulated agreement is a party, or

(b)a linked transaction to which a relative of the debtor or hirer under any regulated agreement is a party,

is cancelled after the debtor or hirer (in a case within paragraph (a)) or the relative (in a case within paragraph (b)) has acquired possession of the goods by virtue of the agreement or transaction.

(2)In this section—

(a)the possessor ” means the person who has acquired possession of the goods as mentioned in subsection (1),

(b)the other party ” means the person from whom the possessor acquired possession, and

(c)the pre-cancellation period ” means the period beginning when the possessor acquired possession and ending with the cancellation.

(3)The possessor shall be treated as having been under a duty throughout the pre-cancellation period—

(a)to retain possession of the goods, and

(b)to take reasonable care of them.

(4)On the cancellation, the possessor shall be under a duty, subject to any lien, to restore the goods to the other party in accordance with this section, and meanwhile to retain possession of the goods and take reasonable care of them.

(5)The possessor shall not be under any duty to deliver the goods except at his own premises and in pursuance of a request in writing signed by or on behalf of the other party and served on the possessor either before, or at the time when, the goods are collected from those premises.

(6)If the possessor—

(a)delivers the goods (whether at his own premises or elsewhere) to any person on whom, under section 69, a notice of cancellation could have been served (other than a person referred to in section 69(6)(b)), or

(b)sends the goods at his own expense to such a person,

he shall be discharged from any duty to retain the goods or deliver them to any person.

(7)Where the possessor delivers the goods as mentioned in subsection (6)(a), his obligation to take care of the goods shall cease; and if he sends the goods as mentioned in subsection (6)(b), he shall be under a duty to take reasonable care to see that they are received by the other party and not damaged in transit, but in other respects his duty to take care of the goods shall cease.

(8)Where, at any time during the period of 21 days following the cancellation, the possessor receives such a request as is mentioned in subsection (5), and unreasonably refuses or unreasonably fails to comply with it, his duty to take reasonable care of the goods shall continue until he delivers or sends the goods as mentioned in subsection (6), but if within that period he does not receive such a request his duty to take reasonable care of the goods shall cease at the end of that period.

(9)The preceding provisions of this section do not apply to—

(a)perishable goods, or

(b)goods which by their nature are consumed by use and which, before the cancellation, were so consumed, or

(c)goods supplied to meet an emergency, or

(d)goods which, before the cancellation, had become incorporated in any land or thing not comprised in the cancelled agreement or a linked transaction.

(10)Where the address of the possessor is specified in the executed agreement, references in this section to his own premises are to that address and no other.

(11)Breach of a duty imposed by this section is actionable as a breach of statutory duty.

73 Cancellation: goods given in part-exchange.E+W+S+N.I.

(1)This section applies on the cancellation of a regulated agreement where, in antecedent negotiations, the negotiator agreed to take goods in part-exchange (the “part-exchange goods ”) and those goods have been delivered to him.

(2)Unless, before the end of the period of ten days beginning with the date of cancellation, the part-exchange goods are returned to the debtor or hirer in a condition substantially as good as when they were delivered to the negotiator, the debtor or hirer shall be entitled to recover from the negotiator a sum equal to the part-exchange allowance (as defined in subsection (7)(b)).

(3)In the case of a debtor-creditor-supplier agreement within section 12(b), the negotiator and the creditor shall be under a joint and several liability to pay to the debtor a sum recoverable under subsection (2).

(4)Subject to any agreement between them, the creditor shall be entitled to be indemnified by the negotiator for loss suffered by the creditor in satisfying his liability under subsection (3), including costs reasonably incurred by him in defending proceedings instituted by the debtor.

(5)During the period of ten days beginning with the date of cancellation, the debtor or hirer, if he is in possession of goods to which the cancelled agreement relates, shall have a lien on them for—

(a)delivery of the part-exchange goods, in a condition substantially as good as when they were delivered to the negotiator, or

(b)a sum equal to the part-exchange allowance;

and if the lien continues to the end of that period it shall thereafter subsist only as a lien for a sum equal to the part-exchange allowance.

(6)Where the debtor or hirer recovers from the negotiator or creditor, or both of them jointly, a sum equal to the part-exchange allowance, then, if the title of the debtor or hirer to the part-exchange goods has not vested in the negotiator, it shall so vest on the recovery of that sum.

(7)For the purposes of this section—

(a)the negotiator shall be treated as having agreed to take goods in part-exchange if, in pursuance of the antecedent negotiations, he either purchased or agreed to purchase those goods or accepted or agreed to accept them as part of the consideration for the cancelled agreement, and

(b)the part-exchange allowance shall be the sum agreed as such in the antecedent negotiations or, if no such agreement was arrived at, such sum as it would have been reasonable to allow in respect of the part-exchange goods if no notice of cancellation had been served.

(8)In an action brought against the creditor for a sum recoverable under subsection (2), he shall be entitled, in accordance with rules of court, to have the negotiator made a party to the proceedings.

Exclusion of certain agreements from Part VE+W+S+N.I.

74 Exclusion of certain agreements from Part V.E+W+S+N.I.

[F245(1)Except as provided in subsections (1A) to (2), this Part does not apply to—

(a)a non-commercial agreement,

(b)a debtor-creditor agreement enabling the debtor to overdraw on a current account,

(c)a debtor-creditor agreement to finance the making of such payments arising on, or connected with, the death of a person as may be prescribed, or

(d)a small debtor-creditor-supplier agreement for restricted-use credit.

(1A)Section 56 (antecedent negotiations) applies to a non-commercial agreement.

(1B)Where an agreement that falls within subsection (1)(b) is an authorised business overdraft agreement the following provisions apply—

(a)section 55B (assessment of creditworthiness);

(b)section 56 (antecedent negotiations);

(c)section 60 (regulations on form and content of agreements);

(d)section 61B (duty to supply copy of overdraft agreement).

(1C)Where an agreement that falls within subsection (1)(b) is an authorised non-business overdraft agreement the following provisions apply—

(a)section 55 (regulations on disclosure of information);

(b)section 55B (assessment of creditworthiness);

(c)section 55C (copy of draft consumer credit agreement);

(d)section 56 (antecedent negotiations);

(e)section 60 (regulations on form and content of agreements);

(f)section 61B (duty to supply copy of overdraft agreement).

(1D)Where an agreement that falls within subsection (1)(b) would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months the following provisions apply—

(a)section 55 (regulations on disclosure of information);

(b)section 55A (adequate explanations);

(c)section 55B (credit assessment);

(d)section 55C (copy of draft consumer credit agreement);

(e)section 56 (antecedent negotiations);

(f)section 60 (regulations on form and content of agreements);

(g)section 61 (signing of agreement);

(h)section 61A (duty to supply copy of executed agreement);

(i)section 66A (withdrawal from consumer credit agreement).

(1E)In the case of an agreement that falls within subsection (1)(b) but does not fall within subsection (1B), (1C) or (1D), section 56 (antecedent negotiations) applies.

(1F)The following provisions apply to a debtor-creditor agreement to finance the making of such payments arising on, or connected with, the death of a person as may be prescribed—