The Consumer Credit (Exempt Agreements) Order 2007

Citation and Commencement

1.  This Order may be cited as the Consumer Credit (Exempt Agreements) Order 2007 and shall come into force on 6th April 2008.

Exemption for high net worth debtors and hirers

2.  The Consumer Credit Act 1974 shall not regulate a consumer credit agreement or a consumer hire agreement where—

(a) the debtor or hirer is a natural person;

(b) the agreement includes a declaration made by him complying with article 3 and Schedule 1;

(c) a statement of high net worth complying with articles 4 and 5 and Schedule 2 has been made in relation to him;

(d) that statement was made during the period of one year ending with the day on which the agreement was made; and

(e) before the agreement was made a copy of that statement was provided to the debtor or hirer and, if the statement was not made by the creditor or owner, to the creditor or owner.

3.  A declaration for the purposes of article 2(b) shall—

(a) be set out in the consumer credit agreement or consumer hire agreement no less prominently than other information in the agreement and be readily distinguishable from the background medium; and

(b) be signed by the debtor or hirer, unless the agreement is so signed.

4.—(1) Subject to article 5, a statement of high net worth shall be signed by—

(a) the creditor or owner; or

(b) an accountant who is a member of any of the bodies listed in paragraph (2).

(2) The bodies referred to in paragraph (1)(b) are:

(a) the Institute of Chartered Accountants in England and Wales;

(b) the Institute of Chartered Accountants of Scotland;

(c) the Institute of Chartered Accounts in Ireland;

(d) the Association of Chartered Certified Accountants;

(e) the Chartered Institute of Management Accountants;

(f) the Chartered Institute of Public Finance and Accountancy;

(g) a professional body for accountants established in a jurisdiction outside the United Kingdom.

5.  A person who is—

(a) the creditor or owner;

(b) an employee or agent of the creditor or owner or a person who otherwise acts on behalf of the creditor or owner in relation to the consumer credit agreement or consumer hire agreement; or

(c) an associate of the creditor or owner,

may only make a statement of high net worth if the creditor or owner is a person who has permission under Part 4 of the Financial Services and Markets Act 2000(1) to accept deposits.

Declaration for exemption relating to businesses

6.  A declaration for the purposes of section 16B(2) of the Consumer Credit Act 1974 shall—

(a) comply with Schedule 3;

(b) be set out in the consumer credit agreement or consumer hire agreement no less prominently than other information in the agreement and be readily distinguishable from the background medium; and

(c) be signed by the debtor or hirer or where the debtor or hirer is a partnership or unincorporated body of persons be signed by or on behalf of the debtor or hirer, unless the agreement is so signed.

Ian McCartney

Minister for Trade, Investment and Foreign Affairs

Department of Trade and Industry

31st March 2007