The Consumer Credit Act 1974 (Electronic Communications) Order 2004

Explanatory Note

(This note is not part of the Order)

This Order inserts or modifies provisions of the Consumer Credit Act 1974 (c 39) and secondary legislation made under that Act for the purpose of enabling and facilitating the use of electronic communications for concluding regulated agreements and when sending notices and other documents.

Article 2(8) makes provision to facilitate the use by a person of electronic communications for the service of statutory notices and documents. Article 2(7) to (8) amends section 176 of the Act (service of documents) to clarify that a requirement under the Act to serve a document on a person may be discharged by sending that document to an electronic address and in electronic form agreed by that person. Article 2(9) to (10) insert new definitions of “appropriate method” and “electronic communication” in section 189 (definitions) of the Act for this purpose.

Article 2(2) to (6) make amendments to relevant parts of the Act that deal with the service, giving or sending of documents so as to include transmission in the form of an electronic communication.

Article 3 amends the Consumer Credit (Termination of Licences) Regulations 1976 to enable service of a notice in the form of an electronic communication.

Article 4 amends the Consumer Credit (Agreements) Regulations 1983 to enable agreements to be concluded electronically and to enable the creditor or owner to include in the signature box information about the process or means of providing, communicating or verifying the signature made by the debtor or hirer.

Article 5 amends the Consumer Credit (Guarantees and Indemnities) Regulations 1983 to enable security instruments to be in the form of an electronic communication and to enable the creditor or owner to include in the security instrument information about the process or means of providing, communicating or verifying the signature made or on behalf of the surety.

Article 6 amends the Consumer Credit (Cancellation Notices and Copies of Documents) Regulations 1983 to enable copies of agreements and cancellation notices to be in the form of an electronic communication. It also enables the creditor or owner to include in the cancellation notice information about the process or means of providing, communicating or verifying such cancellation in the form of an electronic communication.

Article 7 amends the Consumer Credit (Repayment of Credit on Cancellation) Regulations 1983 to enable requests for repayment of credit to include where appropriate an electronic address.

Article 8 amends the Consumer Credit (Settlement Information) Regulations 1983 to allow for an electronic address to be contained in a statement given to the debtor showing the amount required to discharge their indebtedness.

Article 9 amends the Consumer Credit (Conduct of Business) (Pawn Records) Regulations 1983 to allow for an electronic address to be contained in entries in books and records of a person who takes an item in pawn.

Article 10 amends the Consumer Credit (Pawn Receipts) Regulations 1983 to enable pawn receipts to be in the form of an electronic communication.

Article 11 amends the Consumer Credit (Realisation of Pawn) Regulations 1983 to allow for an electronic address to be given, where appropriate, in a notice of an intention to sell an item held in pawn.

Article 12 amends the Consumer Credit (Running Account Information) Regulations 1983 to enable statements to be sent in the form of an electronic communication.

A full regulatory impact assessment of the effect that this instrument will have on costs to business is available from the Consumer and Competition Policy Directorate of the Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET.