Consumer Credit Act 2006 - Explanatory Notes

1. Introduction

2. Summary

3. Short Background

4. The Act

5. Interpretation

6. Commentary on Sections

   1. Agreements Regulated under the 1974 Act

      1. Section 1: Definition of “individual”

      2. Section 2: Removal of financial limits

      3. Section 3: Exemption relating to high net worth debtors and hirers

      4. Section 4: Exemption relating to businesses

      5. Section 5: Consequential amendments relating to ss. 1 to 4

7. Statements to Be Provided in Relation to Regulated Agreements

   1. Section 6: Statements to be provided in relation to fixed-sum credit agreements

   2. Section 7: Further provision relating to statements

8. Default under Regulated Agreements

   1. Section 8: OFT to prepare information sheets on arrears and default

   2. Section 9: Notice of sums in arrears under fixed-sum credit agreements

   3. Section 10: Notice of sums in arrears under running-account credit agreements

   4. Section 11: Failure to give notice of sums in arrears

   5. Section 12: Notice of default sums

   6. Section 13: Interest on default sums

   7. Section 14: Default notices

   8. Section 15: Enforceability of regulated agreements

   9. Section 16: Time orders

   10. Section 17: Interest payable on judgment debts

   11. Section 18: Definition of “default sum”

9. Unfair Relationships

   1. Section 19: Unfair relationships between creditors and debtors

   2. Section 20: Powers of the court in relation to unfair relationships

   3. Section 21: Interpretation of ss.140A and 140B of the 1974 Act

   4. Section 22: Further provision relating to unfair relationships

10. Businesses Requiring a Licence and Consequences of Not Being Licensed

    1. Section 23: Definitions of consumer credit business and consumer hire business

    2. Section 24: Debt administration

    3. Section 25: Credit information services

    4. Section 26: Enforcement of agreements by unlicensed trader

11. Applications for Licences and Fitness to Hold a Licence Etc.

    1. Section 27: Charge on applicants for licences

    2. Section 28: Applications for standard licences

    3. Section 29: Issue of standard licences

    4. Section 30: Guidance on fitness test

    5. Section 31: Variation of licences

    6. Section 32: Winding up of standard licensee’s business

    7. Section 33: Consequential amendments relating to sections 27 to 32

12. Duration of Licences

    1. Section 34: Definite and indefinite licences

    2. Sections 35 - 37: Charges for indefinite licences

13. Further Powers of Oft to Regulate Conduct of Licensees Etc.

    1. Section 38: Power of OFT to impose requirements on licensees

    2. Section 39: Power of OFT to impose requirements on supervisory bodies

    3. Section 40: Supplementary provision relating to requirements

    4. Section 41: Procedure in relation to requirements

    5. Section 42: Guidance on requirements

    6. Section 43: Consequential amendments relating to requirements

14. Powers and Duties in Relation to Information

    1. Section 44: Provision of information by applicants

    2. Section 45: Duties to notify changes in information

    3. Section 46: Power of OFT to require information generally

    4. Section 47: Power of OFT to require access to premises

    5. Section 48: Entry to premises under warrant

    6. Section 49: Failure to comply with information requirement

    7. Section 50: Officers of enforcement authorities other than OFT

    8. Section 51: Consequential amendments relating to information

15. Civil Penalties

    1. Section 52: Power of OFT to impose civil penalties

    2. Section 53: Further provision relating to civil penalties

    3. Section 54: Statement of policy in relation to civil penalties

16. Appeals

    1. Section 55: The Consumer Credit Appeals Tribunal

    2. Section 56: Appeals to the Consumer Credit Appeals Tribunal

    3. Section 57: Appeals from the Consumer Credit Appeals Tribunal

    4. Section 58: Consequential amendments relating to appeals

17. Ombudsman Scheme

    1. Section 59: Financial Services Ombudsman scheme to apply to consumer credit licensees

    2. Section 60: Funding of ombudsman scheme

    3. Section 61: Consequential amendments relating to ombudsman scheme

18. Miscellaneous

    1. Section 62: Monitoring of businesses by OFT

    2. Section 63: Disapplication of section 101 of the 1974 Act

    3. Section 64: Determinations by OFT

19. Schedules

    1. Schedule 1: The consumer credit appeals tribunal

    2. Schedule 2: The consumer credit jurisdiction

    3. Schedule 3: Transitional provision and savings

20. Territorial Application

21. Commencement Date

22. Hansard References