Section 7: Further provision relating to statements
25.Section 7 inserts a new section 78(4A) after section 78(4) of the 1974 Act. Section 78(4) of the 1974 Act requires creditors to issue statements to debtors setting out specified information in respect of running account credit agreements at intervals of not more than 12 months. Regulations made by the Secretary of State under the new section 78(4A) may require creditors to include specified information about the consequence of failing to make repayments, or only making minimum repayments, in statements issued under section 78(4) of the 1974 Act. The new subsection (3) makes provision for the giving of statements under sections 77A (inserted by section 6 of the 2006 Act) and 78(4) of the 1974 Act where there is more than one debtor to whom credit is provided. If there are two or more debtors, a debtor may provide a dispensing notice to the creditor so as to mean that the creditor is not obliged to provide a statement to that debtor. However, dispensing notices will not be effective if that would mean that no debtor will receive a statement under section 77A or 78.
