The Consumer Credit (Exempt Agreements) (Amendment) (No. 3) Order 1991

Explanatory Note

(This note is not part of the Order)

This Order amends Article 2 of the Consumer Credit (Exempt Agreements) Order 1989 (“the principal order”) which provides for the exemption of certain consumer credit agreements secured on land where the creditor is a body specified in Schedule 1 to that Order, a building society authorised under the Building Societies Act 1986, or an authorised institution under the Banking Act 1987 or a wholly owned subsidiary of such an institution.

Paragraph (3)(ii) of Article 2 of the principal order provides for the exemption of debtor-creditor agreements secured by a land mortgage made to finance the alteration, enlarging, repair or improvement of a dwelling, where the agreement is made as a result of services certified as having been provided by certain bodies which are listed in that paragraph.

This Order adds to that list of bodies those bodies which the Secretary of State for the Environment has approved under a provision of the Local Government and Housing Act 1989. Some of those bodies, for example those not housing associations or charities, were not, before the amendment made by this Order, included in the list of bodies in Article 2(3)(ii). Such bodies, often described as “Home Improvement Agencies”, assist owners and occupiers to repair and improve their homes through building works.

The Order also removes the names of three Friendly Societies from the list in Part I of Schedule 1 and adds one body corporate to the list in Part I of Schedule 1 and another to the list in Part III of that Schedule.