Part X Ancillary Credit Businesses
Definitions
145 Types of ancillary credit business.
1
An ancillary credit business is any business so far as it comprises or relates to—
a
credit brokerage,
b
debt-adjusting,
c
debt-counselling,
d
debt-collecting, or
e
the operation of a credit reference agency.
2
Subject to section 146(5) F1and (5A), credit brokerage is the effecting of introductions—
a
of individuals desiring to obtain credit—
i
to persons carrying on businesses to which this sub-paragraph applies, or
ii
in the case of an individual desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by himself or his relative, to any person carrying on a business in the course of which he provides credit secured on land, or
b
of individuals desiring to obtain goods on hire to persons carrying on businesses to which this paragraph applies, or
c
of individuals desiring to obtain credit, or to obtain goods on hire, to other credit-brokers.
3
Subsection (2)(a)(i) applies to—
a
a consumer credit business;
b
a business which comprises or relates to consumer credit agreements being, otherwise than by virtue of section 16(5)(a), exempt agreements;
c
a business which comprises or relates to unregulated agreements where—
i
the F2law applicable to the agreement is the law of a country outside the United Kingdom, and
ii
if the F2law applicable to the agreement were the law of a part of the United Kingdom it would be a regulated consumer credit agreement.
4
Subsection (2)(b) applies to—
a
a consumer hire business;
5
Subject to F3section 146(5B) and (6) , debt-adjusting is, in relation to debts due under consumer credit agreements or consumer hire agreements,—
a
negotiating with the creditor or owner, on behalf of the debtor or hirer, terms for the discharge of a debt, or
b
taking over, in return for payments by the debtor or hirer, his obligation to discharge a debt, or
c
any similar activity concerned with the liquidation of a debt.
6
Subject to F4section 146(5C) and (6) , debt-counselling is the giving of advice to debtors or hirers about the liquidation of debts due under consumer credit agreements or consumer hire agreements.
7
Subject to section 146(6), debt-collecting is the taking of steps to procure payment of debts due under consumer credit agreements or consumer hire agreements.
8
A credit reference agency is a person carrying on a business comprising the furnishing of persons with information relevant to the financial standing of individuals, being information collected by the agency for that purpose.
146 Exceptions from section 145.
1
A barrister or advocate acting in that capacity is not to be treated as doing so in the course of any ancillary credit business.
C12
A solicitor engaging in contentious business (as defined in F5section 87(1) of the Solicitors Act 1974) is not to be treated as doing so in the course of any ancillary credit business.
3
A solicitor within the meaning of the M1Solicitors (Scotland) Act 1933 engaging in business done in or for the purposes of proceedings before a court or before an arbiter is not to be treated as doing so in the course of any ancillary credit business.
C14
A solicitor in Northern Ireland engaging in F6contentious business (as defined in Article 3(2) of the Solicitors (Northern Ireland) Order 1976., is not to be treated as doing so in the course of any ancillary credit business.
5
For the purposes of section 145(2), introductions effected by an individual by canvassing off trade premises either debtor-creditor-supplier agreements falling within section 12(a) or regulated consumer hire agreements shall be disregarded if—
a
the introductions are not effected by him in the capacity of an employee, and
b
he does not by any other method effect introductions falling within section 145(2).
F75A
It is not credit brokerage for a person to effect the introduction of an individual desiring to obtain credit if the introduction is made—
a
to an authorised person, within the meaning of the 2000 Act, who has permission under that Act to enter as lender into relevant agreements; or
b
to a qualifying broker,
with a view to that individual obtaining credit under a relevant agreement.
5B
It is not debt-adjusting for a person to carry on an activity mentioned in paragraph (a), (b) or (c) of section 145(5) if—
a
the debt in question is due under a relevant agreement; and
b
that activity is a regulated activity for the purposes of the 2000 Act.
5C
It is not debt-counselling for a person to give advice to debtors about the liquidation of debts if—
a
the debt in question is due under a relevant agreement; and
b
giving that advice is a regulated activity for the purposes of the 2000 Act.
5D
In this section—
“the 2000 Act” means the Financial Services and Markets Act 2000;
“relevant agreement” means a consumer credit agreement which is secured by a land mortgage, where entering into that agreement as lender is a regulated activity for the purposes of the 2000 Act;
“qualifying broker” means a person who may effect introductions of the kind mentioned in subsection (5A) without contravening the general prohibition, within the meaning of section 19 of the 2000 Act,
and references to “regulated activities” and the definition of “qualifying broker” must be read with—
- a
section 22 of the 2000 Act (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.
- a
6
It is not debt-adjusting, debt-counselling or debt-collecting for a person to do anything in relation to a debt arising under an agreement if—
a
he is the creditor or owner under the agreement, otherwise than by virtue of an assignment, or
b
he is the creditor or owner under the agreement by virtue of an assignment made in connection with the transfer to the assignee of any business other than a debt-collecting business, or
c
he is the supplier in relation to the agreement, or
d
he is a credit-broker who has acquired the business of the person who was the supplier in relation to the agreement, or
e
he is a person prevented by subsection (5) from being treated as a credit-broker, and the agreement was made in consequence of an introduction (whether made by him or another person) which, under subsection (5), is to be disregarded.