The Consumer Credit (Miscellaneous Amendments) Regulations 2004

Statutory Instruments

2004 No. 2619

CONSUMER CREDIT

The Consumer Credit (Miscellaneous Amendments) Regulations 2004

Made

7th October2004

Laid before Parliament

8th October 2004

Coming into force

Regulations 1, 2, 3(1), (2) and (4)

31st October 2004

Remainder

31st May 2005

The Secretary of State, in exercise of the powers conferred upon her by sections 44, 60, 61(1)(a), 64(1), 95, 105(9), 114(1), 151(1), 180(1), 182(2) and 189(1) of the Consumer Credit Act 1974(1) hereby makes the following Regulations:

Citation and Commencement

1.—(1) These Regulations may be cited as the Consumer Credit (Miscellaneous Amendments) Regulations 2004.

(2) This regulation and regulations 2 and 3(1), (2) and (4) shall come into force on 31st October 2004 and all other regulations shall come into force on 31st May 2005.

Amendment of the Consumer Credit (Agreements) (Amendment) Regulations 2004

2.—(1) The Consumer Credit (Agreements) (Amendment) Regulations 2004(2) shall be amended as follows.

(2) In regulation 4 for paragraph (4)(c) (form and content of regulated consumer credit agreements) of the substituted regulation 2 substitute—

“(c) under the heading “Key Financial Information”, the financial and related particulars set out in paragraphs 6 to 8B, 11 to 14 and 15 to 17 of Schedule 1 to these Regulations;”.

(3) After regulation 5(3) (form and content of regulated consumer hire agreements) insert—

“(4) In paragraph 6 for the words “Forms 1 to 3” substitute “Forms 1, 4 and 5””.

(4) For regulation 9(3) (modifying agreements which are, or are treated as, regulated agreements) substitute—

“(3) For paragraph (4) substitute—

“(4) Subject to paragraph (5) below and regulation 2(9), the information, statements of the protection and remedies, signature and separate boxes which under these Regulations must be contained in documents embodying modifying agreements varying or supplementing earlier credit agreements in relation to the credit being provided under the modifying agreement, shall be set out in the order given by paragraphs (a) to (f) below under, where applicable, the headings specified below—

(a) the nature of the agreement as set out in paragraph 1 of Part 1 of Schedule 8 to these Regulations;

(b) parties to the agreement as set out in paragraph 2 of Part 1 of Schedule 8 to these Regulations;

(c) under the heading “Key Financial Information”, the financial and related particulars set out in paragraphs 5 to 7B, 10 to 13 and 14 to 17 of Part 1 of Schedule 8 to these Regulations;

(d) under the heading “Other Financial Information”, the financial and related particulars set out in paragraphs 3, 4, 8, 9, 13A and 18 to 19A of Part 1 of Schedule 8 to these Regulations;

(e) under the heading “Key Information”—

(i) the information set out in paragraphs 20 to 24 of Part 1 of Schedule 8 to these Regulations; and

(ii) the statements of protection and remedies set out in Schedule 2 to these Regulations; and

(f) the signature box and, where applicable, separate box required by regulation 2(7)(b),

and such information, statements of protection and remedies, signature and separate boxes shall be shown together as a whole and shall not be preceded by any information apart from trade names, logos or the reference number of the agreement or interspersed with any other information or wording apart from subtotals of total amounts and cross references to the terms of the agreement.””.

(5) In regulation 10(8) for the new paragraph 23 substitute—

“Cancellation rights

23.

Agreements that cannot be cancelled by the debtor under the Act, the Timeshare Act 1992(3) or the Financial Services (Distance Marketing) Regulations 2004(4).

A statement that the debtor has no right to cancel the agreement under the Consumer Credit Act 1974, the Timeshare Act 1992 or the Financial Services (Distance Marketing) Regulations 2004.”.

(6) In regulation 11 in Column 3 of the substituted Form 4—

(a) omit the words from “[However” to “disconnect and return the goods yourself.]**”; and

(b) omit the whole of note **.

(7) In regulation 11 in Column 2 of the substituted Form 5 for the words “3 or 6” substitute “4 or 6”.

(8) In regulation 11 in Column 3 of the substituted Form 18 for “£x****” in the first place where it appears substitute “£x***”.

Amendment of the Consumer Credit (Advertisements) Regulations 2004

3.—(1) The Consumer Credit (Advertisements) Regulations 2004(5) shall be amended as follows.

(2) In Schedule 2 (information to be contained in a credit advertisement) in the shoulder note for the words “and (6)” substitute “and (5)”.

(3) In Schedule 2 for paragraph 7 (total amount payable by the debtor) substitute—

“7.   In the case of an advertisement relating to fixed-sum credit to be provided under a consumer credit agreement which is repayable at specified intervals or in specified amounts and other than cases under which the sum of the payments within sub-paragraphs (a) to (c) below is not greater than the cash price referred to in paragraph 3, the total amount payable by the debtor, being the total of—

(a) advance payments;

(b) the amount of credit repayable by the debtor, and

(c) the amount of the total charge for credit.”.

(4) In Schedule 3 (information to be contained in a hire advertisement)—

(a) in paragraph 5(2) for the word “debtor” substitute “hirer”;

(b) in paragraph 5(3)—

(i) for the word “creditor” substitute “owner”; and

(ii) for the word “debtor” substitute “hirer”.

Amendment of the Consumer Credit (Early Settlement) Regulations 2004

4.  In regulation 3(2)(d) (items included in the calculation of rebate) of the Consumer Credit (Early Settlement) Regulations 2004(6) omit the words from “, other than” to the end.

Amendment of the Consumer Credit (Cancellation Notices and Copies of Documents) Regulations 1983

5.—(1) The Consumer Credit (Cancellation Notices and Copies of Documents) Regulations 1983(7) shall be amended as follows.

(2) In regulation 5 (Copies of cancellable unexecuted and executed agreements)—

(a) in paragraph (1) for the words “Forms 2 to 4” substitute “Forms 4 to 6” and for the words “Forms 2 and 3” substitute “Forms 4 and 5”; and

(b) in paragraph 2(a) for the words “Forms 2 to 4” substitute “Forms 4 to 6” and for the words “Forms 2 and 3” substitute “Forms 4 and 5”.

(3) For Part II of the Schedule substitute—

“PART II

Forms of notice of cancellation rights to be included in copies of cancellable unexecuted or executed agreements given to the debtor or hirer under section 62 or 63(1) of the Act

”.

(4) For Part III of the Schedule substitute—

“PART III

Forms of notice of cancellation rights to be included in copies of cancellable executed agreements sent by post to the debtor or hirer under section 63(2) or (4) of the Act

”.

(5) For Part VI of the Schedule substitute—

“PART VI

Forms of notice of cancellation rights to be sent by post to the debtor or hirer under section 64(1)(b) or (2) of the Act

”.

Sainsbury of Turville,

Parliamentary Under Secretary of State for Science and Innovation,

Department of Trade and Industry

7th October 2004

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Consumer Credit (Agreements) (Amendment) Regulations 2004 (“the Agreements Amendment Regulations”), the Consumer Credit (Advertisements) Regulations 2004 (“the Advertisements Regulations”), the Consumer Credit (Early Settlement) Regulations 2004 (“the Early Settlement Regulations”) and the Consumer Credit (Cancellation Notices and Copies of Documents) Regulations 1983 (“the Copies of Documents Regulations”). The principal amendments made by the Regulations are as follows—

(1) they correct typographical and cross-reference errors in the Agreements Amendment Regulations and substitute a new paragraph 23 of Schedule 1 into the Consumer Credit (Agreements) Regulations 1983 (S.I. 1983/2553) to include reference to cancellation under the Consumer Credit Act 1974, the Timeshare Act 1992 and the Financial Services (Distance Marketing) Regulations 2004;

(2) they amend Schedule 2 to the Advertisements Regulations by substituting a new paragraph 7 concerning the total amount payable by the debtor;

(3) they amend regulation 3(2) of the Early Settlement Regulations relating to items included in the calculation of rebate;

(4) they remove wording in the statutory notices in both Schedule 2 to the Consumer Credit (Agreements) Regulations 1983 and the Schedule to the Copies of Documents Regulations relating to Health and Safety Regulations;

(5) they substitute new Parts II, III and VI of the Schedule to the Copies of Documents Regulations relating to the Forms of notice of cancellation rights to be included in copies of agreements and to be sent by post to debtors or hirers.

(1)

1974 c. 39; section 189(1) is cited for the definitions of “prescribed” and “regulations”.

(2)

S.I. 2004/1482.

(3)

1992 c. 35.

(4)

S.I. 2004/2095.

(5)

S.I. 2004/1484.

(6)

S.I. 2004/1483.

(7)

S.I. 1983/1557; relevant amending instruments are S.I. 1984/1108, and 1988/2047.