Consumer Credit Act 1974

1974 c. 39

An Act to establish for the protection of consumers a new system, administered by the Director General of Fair Trading, of licensing and other control of traders concerned with the provision of credit, or the supply of goods on hire or hire-purchase, and their transactions, in place of the present enactments regulating moneylenders, pawnbrokers and hire-purchase traders and their transactions; and for related matters.

[31st July 1974]C1 C2 I1 C3 C4 C5 C6 C28

Annotations:

Commencement Information

Act partly in force at Royal Assent see s. 192(1)(2)(3); Act wholly in force on 19.5.1985

Modifications etc. (not altering text)

Act excluded by S.I. 1983/1553, reg. 2(7A) (as inserted by S.I. 1984/1600, reg. 2(e))

Act excluded by S.I. 1989/869, arts. 2(1), 3(1), 4(1), 5, 6

Act modified (12.10.1992) by Timeshare Act 1992 (c. 35), s. 12(5); S.I. 1992/1941, art. 2

Act excluded (21.7.2008 with retrospective effect as stated in s. 8(2) of the amending Act) by Sale of Student Loans Act 2008 (c. 10), ss. 8(1), 14 (with s. 9(5))

Act excluded (1.2.2011) by S.I. 1989/869, art. 5A (as inserted by S.I. 2010/1010, regs. 67A, 99(1) (with regs. 100, 101) (as inserted by The Consumer Credit (Amendment) Regulations 2010 (S.I. 2010/1969), reg. 21))

Power to amend conferred (prosp.) by Energy Act 2011 (c. 16), ss. 30(1), 121(1) (with s. 41)

C28

Act: power to amend conferred (21.3.2012) by Energy Act 2011 (c. 16), ss. 30(1), 121(1); S.I. 2012/873, art. 2(a)(vi)

F373Part IOFFICE OF FAIR TRADING

Annotations:

Amendments (Textual)

F373

Pt. I omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(2)

F3731 General functions of OFT.

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F3732 Powers of Secretary of State.

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F3733. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3734 Dissemination of information and advice.

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F3735 Annual and other reports.

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F3736 Form etc. of applications.

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F3736ACharge on applicants for licences etc.

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F3737 Penalty for false information.

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In relation to running-account credit, “credit limit ” means, as respects any period, the maximum debit balance which, under the credit agreement, is allowed to stand on the account during that period, disregarding any term of the agreement allowing that maximum to be exceeded merely temporarily.

3

For the purposes of F4any provision of this Act that specifies an amount of credit (except section 17(1)(a)) , running-account credit shall be taken not to exceed the amount specified in F5that provision( “the specified amount ”) if—

a

the credit limit does not exceed the specified amount; or

b

whether or not there is a credit limit, and if there is, notwithstanding that it exceeds the specified amount,—

i

the debtor is not enabled to draw at any one time an amount which, so far as (having regard to section 9(4)) it represents credit, exceeds the specified amount, or

ii

the agreement provides that, if the debit balance rises above a given amount (not exceeding the specified amount), the rate of the total charge for credit increases or any other condition favouring the creditor or his associate comes into operation, or

iii

at the time the agreement is made it is probable, having regard to the terms of the agreement and any other relevant considerations, that the debit balance will not at any time rise above the specified amount.

11 Restricted-use credit and unrestricted-use credit.

1

A restricted-use credit agreement is a regulated consumer credit agreement—

a

to finance a transaction between the debtor and the creditor, whether forming part of that agreement or not, or

b

to finance a transaction between the debtor and a person (the “supplier ”) other than the creditor, or

c

to refinance any existing indebtedness of the debtor’s, whether to the creditor or another person,

and “restricted-use credit ” shall be construed accordingly.

2

An unrestricted-use credit agreement is a regulated consumer credit agreement not falling within subsection (1), and “unrestricted-use credit ” shall be construed accordingly.

3

An agreement does not fall within subsection (1) if the credit is in fact provided in such a way as to leave the debtor free to use it as he chooses, even though certain uses would contravene that or any other agreement.

4

An agreement may fall within subsection (1)(b) although the identity of the supplier is unknown at the time the agreement is made.

12 Debtor-creditor supplier agreements.

A debtor-creditor-supplier agreement is a regulated consumer credit agreement being—

a

F37716AExemption relating to high net worth debtors and hirers

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F37816BExemption relating to businesses

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F37916CExemption relating to investment properties

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17 Small agreements.

1

A small agreement is—

a

A regulated consumer credit agreement for credit not exceeding F7£50, other than a hire-purchase or conditional sale agreement: or

b

a regulated consumer hire agreement which does not require the hirer to make payments exceeding F7£50,

being an agreement which is either unsecured or secured by a guarantee or indemnity only (whether or not the guarantee or indemnity is itself secured).

F82

For the purposes of paragraph (a) of subsection (1), running-account credit shall be taken not to exceed the amount specified in that paragraph if the credit limit does not exceed that amount.

3

Where—

a

two or more small agreements are made at or about the same time between the same parties, and

b

it appears probable that they would instead have been made as a single agreement but for the desire to avoid the operation of provisions of this Act which would have applied to that single agreement but, apart from this subsection, are not applicable to the small agreements,

this Act applies to the small agreements as if they were regulated agreements other than small agreements.

4

If, apart from this subsection, subsection (3) does not apply to any agreements but would apply if, for any party or parties to any of the agreements, there were substituted an associate of that party, or associates of each of those parties, as the case may be, then subsection (3) shall apply to the agreements.

18 Multiple agreements.

1

This section applies to an agreement (a “multiple agreement ”) if its terms are such as—

a

to place a part of it within one category of agreement mentioned in this Act, and another part of it within a different category of agreement so mentioned, or within a category of agreement not so mentioned, or

b

to place it, or a part of it, within two or more categories of agreement so mentioned.

2

Where a part of an agreement falls within subsection (1), that part shall be treated for the purposes of this Act as a separate agreement.

3

Where an agreement falls within subsection (1)(b), it shall be treated as an agreement in each of the categories in question, and this Act shall apply to it accordingly.

4

Where under subsection (2) a part of a multiple agreement is to be treated as a separate agreement, the multiple agreement shall (with any necessary modifications) be construed accordingly; and any sum payable under the multiple agreement, if not apportioned by the parties, shall for the purposes of proceedings in any court relating to the multiple agreement be apportioned by the court as may be requisite.

5

In the case of an agreement for running-account credit, a term of the agreement allowing the credit limit to be exceeded merely temporarily shall not be treated as a separate agreement or as providing fixed-sum credit in respect of the excess.

6

This Act does not apply to a multiple agreement so far as the agreement relates to goods if under the agreement payments are to be made in respect of the goods in the form of rent (other than a rentcharge) issuing out of land.

19 Linked transactions.

1

A transaction entered into by the debtor or hirer, or a relative of his, with any other person ( “the other party ”), except one for the provision of security, is a linked transaction in relation to an actual or prospective regulated agreement (the “principal agreement ”) of which it does not form part if—

a

the transaction is entered into in compliance with a term of the principal agreement; or

b

the principal agreement is a debtor-creditor-supplier agreement and the transaction is financed, or to be financed, by the principal agreement; or

c

the other party is a person mentioned in subsection (2), and a person so mentioned initiated the transaction by suggesting it to the debtor or hirer, or his relative, who enters into it—

i

to induce the creditor or owner to enter into the principal agreement, or

ii

for another purpose related to the principal agreement, or

iii

where the principal agreement is a restricted-use credit agreement, for a purpose related to a transaction financed, or to be financed, by the principal agreement.

2

The persons referred to in subsection (1)(c) are—

a

the creditor or owner, or his associate;

b

a person who, in the negotiation of the transaction, is represented by a credit-broker who is also a negotiator in antecedent negotiations for the principal agreement;

c

a person who, at the time the transaction is initiated, knows that the principal agreement has been made or contemplates that it might be made.

3

A linked transaction entered into before the making of the principal agreement has no effect until such time (if any) as that agreement is made.

4

Regulations may exclude linked transactions of the prescribed description from the operation of subsection (3).

20F380Total charge for credit

In this Act, “the total charge for credit” has the meaning given by the Regulated Activities Order for the purposes of Chapter 14A of Part 2 of that Order.

F381Part III Licensing of Credit and Hire Businesses

Annotations:

Amendments (Textual)

F381

Pt. III omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(10) (with arts. 37(5), 39(4), 41(5), 44(5), 46(3)(b), 48(3), 54(2))

F381 Licensing principles

F38121 Businesses needing a licence.

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F38122 Standard and group licences.

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F38123 Authorisation of specific activities.

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F38124 Control of name of business.

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F38124AApplications for standard licences

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F381 F32425 Licensee to be a fit person.

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F38125AGuidance on fitness test

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F38126 Conduct of business

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F381 Issue of licences

F38127 Determination of applications.

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F38127AConsumer credit EEA firms

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F38128 Exclusion from group licence.

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F381Charges for indefinite licences

F38128ACharges to be paid by licensees etc. before end of payment periods

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F38128BExtension of period to pay charge under s. 28A

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F38128CFailure to pay charge under s. 28A

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F381 Renewal, variation, suspension and revocation of licences

F38129 Renewal.

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F38130 Variation by request.

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F38131 Compulsory variation.

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F38132 ...revocation.

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F38132APower to suspend licence

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F38132BDuration of suspension

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F38133 Application to end suspension.

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F381Further powers of OFT to regulate conduct of licensees etc.

F38133A Power of OFT to impose requirements on licensees

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F38133BPower of OFT to impose requirements on supervisory bodies

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F38133CSupplementary provision relating to requirements

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F38133DProcedure in relation to requirements

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F38133EGuidance on requirements

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F381 Miscellaneous

F38134 Representations to OFT.

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F38134ZARepresentations to OFT: suspension under section 32A

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F38134AWinding-up of standard licensee's business

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F38135 The register.

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F38136 Duty to notify changes.

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F38136A Further duties to notify changes etc.

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F38136B Power of OFT to require information generally

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F38136C Power of OFT to require access to premises

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F38136DEntry to premises under warrant

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F38136EFailure to comply with information requirement

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F38136F Officers of enforcement authorities other than OFT

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F38137 Death, bankruptcy etc. of licensee.

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F38138 Application of s. 37 to Scotland and Northern Ireland.

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F38139 Offences against Part III.

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F38139A Power of OFT to impose civil penalties

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F38139BFurther provision relating to civil penalties

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F38139CStatement of policy in relation to civil penalties

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F38140 Enforcement of agreements made by unlicensed trader.

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F381Appeals

F38140AThe Consumer Credit Appeals Tribunal

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F38141 Appeals to First-tier Tribunal under Part III.

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F38141ZATribunal Procedure Rules: suspension of OFT determinations

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F38141ZBDisposal of appeals

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F38141AAppeals from the Consumer Credit Appeals Tribunal

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F38142. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV Seeking Business

F319 ...

Annotations:

Amendments (Textual)

F319

Cross-heading omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(11)

43F463 Advertisements to which Part IV applies.

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F38244 Form and content of advertisements.

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F38345 Prohibition of advertisement where goods etc. not sold for cash.

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46 False or misleading advertisements.

F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F38447 Advertising infringements.

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Canvassing etc.

48 Definition of canvassing off trade premises (regulated agreements).

1

An individual (the “canvasser ”) canvasses a regulated agreement off trade premises if he solicits the entry (as debtor or hirer) of another individual (the “consumer ”) into the agreement by making oral representations to the consumer, or any other individual, during a visit by the canvasser to any place (not excluded by subsection (2)) where the consumer, or that other individual, as the case may be, is, being a visit—

a

carried out for the purpose of making such oral representations to individuals who are at that place, but

b

not carried out in response to a request made on a previous occasion.

2

A place is excluded from subsection (1) if it is a place where a business is carried on (whether on a permanent or temporary basis) by—

a

the creditor or owner, or

b

a supplier, or

c

the canvasser, or the person whose employee or agent the canvasser is, or

d

the consumer.

1

A person commits an offence, who, with a view to financial gain, sends to a minor any document inviting him to—

a

borrow money, or

b

obtain goods on credit or hire, or

c

obtain services on credit, or

d

apply for information or advice on borrowing money or otherwise obtaining credit, or hiring goods.

2

In proceedings under subsection (1) in respect of the sending of a document to a minor, it is a defence for the person charged to prove that he did not know, and had no reasonable cause to suspect, that he was a minor.

3

Where a document is received by a minor at any school or other educational establishment for minors, a person sending it to him at that establishment knowing or suspecting it to be such an establishment shall be taken to have reasonable cause to suspect that he is a minor.

F385 C3751 Prohibition of unsolicited credit-tokens.

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F38651ARestrictions on provision of credit card cheques

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F387 F387...Section 51A: exemption for business

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F320 ...

Annotations:

Amendments (Textual)

F320

52F464 Quotations.

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F38853 Duty to display information.

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F38954 Conduct of business regulations.

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Part V Entry into Credit or Hire Agreements

Preliminary matters

55 Disclosure of information.

1

Regulations may require specified information to be disclosed in the prescribed manner to the debtor or hirer before a regulated agreement is made.

F102

If regulations under subsection (1) are not complied with, the agreement is enforceable against the debtor or hirer on an order of the court only (and for these purposes a retaking of goods or land to which the agreement relates is an enforcement of the agreement).

F39055APre-contractual explanations etc

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F39155BAssessment of creditworthiness

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55CF11Copy of draft consumer credit agreement

1

Before a regulated consumer credit agreement, other than an excluded agreement, is made, the creditor must, if requested, give to the debtor without delay a copy of the prospective agreement (or such of its terms as have at that time been reduced to writing).

2

Subsection (1) does not apply if at the time the request is made, the creditor is unwilling to proceed with the agreement.

3

A breach of the duty imposed by subsection (1) is actionable as a breach of statutory duty.

4

For the purposes of this section an agreement is an excluded agreement if it is—

a

4

For the purposes of this Act, antecedent negotiations shall be taken to begin when the negotiator and the debtor or hirer first enter into communication (including communication by advertisement), and to include any representations made by the negotiator to the debtor or hirer and any other dealings between them.

57 Withdrawal from prospective agreement.

1

The withdrawal of a party from a prospective regulated agreement shall operate to apply this Part to the agreement, any linked transaction and any other thing done in anticipation of the making of the agreement as it would apply if the agreement were made and then cancelled under section 69.

2

The giving to a party of a written or oral notice which, however expressed, indicates the intention of the other party to withdraw from a prospective regulated agreement operates as a withdrawal from it.

Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (5)(d).

on its return by the debtor or hirer after signature by him,

whichever first occurs.

4

Where the debtor or hirer is a partnership or an unincorporated body of persons, subsection (1)(a) shall apply with the substitution for “by the debtor or hirer ” of “by or on behalf of the debtor or hirer ”.

A regulated agreement F22which is an excluded agreement is not properly executed if the requirements of this section are not observed.

F236

In this section, “excluded agreement” has the same meaning as in section 61A.

on an application by that person to the F342FCA , the F342FCA has determined that, having regard to—

i

the manner in which antecedent negotiations for agreements with the applicant of that description are conducted, and

ii

the information provided to debtors or hirers before such agreements are made,

the requirement imposed by subsection (1)(b) can be dispensed with without prejudicing the interests of debtors or hirers; and

b

any conditions imposed by the F342FCA in making the determination are complied with.

5

A cancellable agreement is not properly executed if the requirements of this section are not observed.

65 Consequences of improper execution.

1

An improperly-executed regulated agreement is enforceable against the debtor or hirer on an order of the court only.

2

A retaking of goods or land to which a regulated agreement relates is an enforcement of the agreement.

C866 Acceptance of credit-tokens.

1

The debtor shall not be liable under a credit-token agreement for use made of the credit-token by any person unless the debtor had previously accepted the credit-token, or the use constituted an acceptance of it by him.

2

The debtor accepts a credit-token when—

a

it is signed, or

b

a receipt for it is signed, or

c

it is first used,

either by the debtor himself or by a person who, pursuant to the agreement, is authorised by him to use it.

F37Withdrawal from certain agreements

Annotations:

Amendments (Textual)

F37

S. 66A and preceding cross-heading inserted (1.2.2011) by The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010, {regs. 13}, 99(1) (with regs. 100, 101) (as amended by The Consumer Credit (Amendment) Regulations 2010 (S.I. 2010/1969), reg. 8 (with reg. 46))

the sum payable under subsection (9)(a) is paid in full by the debtor,

title to the goods purchased or supplied under the agreement is to pass to the debtor on the same terms as would have applied had the debtor not withdrawn from the agreement.

12

In subsections (2), (4), (5), (6) and (9)(a) references to the creditor include a person specified by the creditor in the agreement.

13

In subsection (7)(b) the reference to an ancillary service means a service that relates to the provision of credit under the agreement and includes in particular an insurance or payment protection policy.

14

For the purposes of this section, an agreement is an excluded agreement if it is—

a

an agreement for credit exceeding £60, 260,

b

an agreement secured on land,

c

a restricted-use credit agreement to finance the purchase of land, or

d

an agreement for a bridging loan in connection with the purchase of land.

Cancellation of certain agreements within cooling-off period

67 Cancellable agreements.

F27(1) Subject to subsection (2) a regulated agreement may be cancelled by the debtor or hirer in accordance with this Part if the antecedent negotiations included oral representations made when in the presence of the debtor or hirer by an individual acting as, or on behalf of, the negotiator, unless—

the supply of goods which, before service of the notice of cancellation, had by the act of the debtor or his relative become incorporated in any land or thing not comprised in the agreement or any linked transaction,

subsection (1) shall apply with the substitution of the following for paragraph (i)—

i
to cancel only such provisions of the agreement and any linked transaction as—
aa
relate to the provision of credit, or
bb
require the debtor to pay an item in the total charge for credit, or
cc
subject the debtor to any obligation other than to pay for the doing of the said work, or the supply of the said goods

3

Except so far as is otherwise provided, references in this Act to the cancellation of an agreement or transaction do not include a case within subsection (2).

4

Except as otherwise provided by or under this Act, an agreement or transaction cancelled under subsection (1) shall be treated as if it had never been entered into.

5

Regulations may exclude linked transactions of the prescribed description from subsection (1)(i) or (ii).

6

Each of the following shall be deemed to be the agent of the creditor or owner for the purpose of receiving a notice of cancellation—

a

a credit-broker or supplier who is the negotiator in antecedent negotiations, and

b

any person who, in the course of a business carried on by him, acts on behalf of the debtor or hirer in any negotiations for the agreement.

F297

Whether or not it is actually received by him, a notice of cancellation sent to a person shall be deemed to be served on him—

a

in the case of a notice sent by post, at the time of posting, and

b

in the case of a notice transmitted in the form of an electronic communication in accordance with section 176A(1), at the time of the transmission.

70 Cancellation: recovery of money paid by debtor or hirer.

1

On the cancellation of a regulated agreement, and of any linked transaction,—

a

any sum paid by the debtor or hirer, or his relative, under or in contemplation of the agreement or transaction, including any item in the total charge for credit, shall become repayable, and

b

any sum, including any item in the total charge for credit, which but for the cancellation is, or would or might become, payable by the debtor or hirer, or his relative, under the agreement or transaction shall cease to be, or shall not become, so payable, and

c

in the case of a debtor-creditor-supplier agreement falling within section 12(b), any sum paid on the debtor’s behalf by the creditor to the supplier shall become repayable to the creditor.

2

If, under the terms of a cancelled agreement or transaction, the debtor or hirer, or his relative, is in possession of any goods, he shall have a lien on them for any sum repayable to him under subsection (1) in respect of that agreement or transaction, or any other linked transaction.

3

A sum repayable under subsection (1) is repayable by the person to whom it was originally paid, but in the case of a debtor-creditor-supplier agreement falling within section 12(b) the creditor and the supplier shall be under a joint and several liability to repay sums paid by the debtor, or his relative, under the agreement or under a linked transaction falling within section 19(1)(b) and accordingly, in such a case, the creditor shall be entitled, in accordance with rules of court, to have the supplier made a party to any proceedings brought against the creditor to recover any such sums.

4

Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (3), including costs reasonably incurred by him in defending proceedings instituted by the debtor.

5

Subsection (1) does not apply to any sum which, if not paid by a debtor, would be payable by virtue of section 71, and applies to a sum paid or payable by a debtor for the issue of a credit-token only where the credit-token has been returned to the creditor or surrendered to a supplier.

6

If the total charge for credit includes an item in respect of a fee or commission charged by a credit-broker, the amount repayable under subsection (1) in respect of that item shall be the excess over F30£5 of the fee or commission.

7

If the total charge for credit includes any sum payable or paid by the debtor to a credit-broker otherwise than in respect of a fee or commission charged by him, that sum shall for the purposes of subsection (6) be treated as if it were such a fee or commission.

8

So far only as is necessary to give effect to section 69(2), this section applies to an agreement or transaction within that subsection as it applies to a cancelled agreement or transaction.

71 Cancellation: repayment of credit.

1

Notwithstanding the cancellation of a regulated consumer credit agreement, other than a debtor-creditor-supplier agreement for restricted-use credit, the agreement shall continue in force so far as it relates to repayment of credit and payment of interest.

2

If, following the cancellation of a regulated consumer credit agreement, the debtor repays the whole or a portion of the credit—

a

before the expiry of one month following service of the notice of cancellation, or

b

in the case of a credit repayable by instalments, before the date on which the first instalment is due,

no interest shall be payable on the amount repaid.

3

If the whole of a credit repayable by instalments is not repaid on or before the date specified in subsection (2)(b), the debtor shall not be liable to repay any of the credit except on receipt of a request in writing in the prescribed form, signed by or on behalf of the creditor, stating the amounts of the remaining instalments (recalculated by the creditor as nearly as may be in accordance with the agreement and without extending the repayment period), but excluding any sum other than principal and interest.

4

Repayment of a credit, or payment of interest, under a cancelled agreement shall be treated as duly made if it is made to any person on whom, under section 69, a notice of cancellation could have been served, other than a person referred to in section 69(6)(b).

72 Cancellation: return of goods.

1

This section applies where any agreement or transaction relating to goods, being—

a

a restricted-use debtor-creditor-supplier agreement, a consumer hire agreement, or a linked transaction to which the debtor or hirer under any regulated agreement is a party, or

b

b

sends the goods at his own expense to such a person,

he shall be discharged from any duty to retain the goods or deliver them to any person.

7

Where the possessor delivers the goods as mentioned in subsection (6)(a), his obligation to take care of the goods shall cease; and if he sends the goods as mentioned in subsection (6)(b), he shall be under a duty to take reasonable care to see that they are received by the other party and not damaged in transit, but in other respects his duty to take care of the goods shall cease.

8

Where, at any time during the period of 21 days following the cancellation, the possessor receives such a request as is mentioned in subsection (5), and unreasonably refuses or unreasonably fails to comply with it, his duty to take reasonable care of the goods shall continue until he delivers or sends the goods as mentioned in subsection (6), but if within that period he does not receive such a request his duty to take reasonable care of the goods shall cease at the end of that period.

9

The preceding provisions of this section do not apply to—

74 Exclusion of certain agreements from Part V.

F311

Except as provided in subsections (1A) to (2), this Part does not apply to—

a

a non-commercial agreement,

b

a debtor-creditor agreement enabling the debtor to overdraw on a current account,

c

a debtor-creditor agreement to finance the making of such payments arising on, or connected with, the death of a person as may be prescribed, or

d

a small debtor-creditor-supplier agreement for restricted-use credit.

1A

Section 56 (antecedent negotiations) applies to a non-commercial agreement.

1B

Where an agreement that falls within subsection (1)(b) is an authorised business overdraft agreement the following provisions apply—

F395a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

section 56 (antecedent negotiations);

c

section 60 (regulations on form and content of agreements);

d

section 61B (duty to supply copy of overdraft agreement).

1C

Where an agreement that falls within subsection (1)(b) is an authorised non-business overdraft agreement the following provisions apply—

a

section 55 (regulations on disclosure of information);

F396b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c

section 55C (copy of draft consumer credit agreement);

d

section 56 (antecedent negotiations);

e

section 60 (regulations on form and content of agreements);

f

section 61B (duty to supply copy of overdraft agreement).

1D

Where an agreement that falls within subsection (1)(b) would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months the following provisions apply—

a

section 55 (regulations on disclosure of information);

F397b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F397c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

section 55C (copy of draft consumer credit agreement);

e

section 56 (antecedent negotiations);

f

section 60 (regulations on form and content of agreements);

g

section 61 (signing of agreement);

h

section 61A (duty to supply copy of executed agreement);

i

section 66A (withdrawal from consumer credit agreement).

1E

In the case of an agreement that falls within subsection (1)(b) but does not fall within subsection (1B), (1C) or (1D), section 56 (antecedent negotiations) applies.

1F

The following provisions apply to a debtor-creditor agreement to finance the making of such payments arising on, or connected with, the death of a person as may be prescribed—

a

section 55 (regulations on disclosure of information);

F398b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F398c

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d

section 55C (copy of draft consumer credit agreement);

e

section 56 (antecedent negotiations);

f

section 60 (regulations on form and content of agreements);

g

section 61 (signing of agreement);

h

section 61A (duty to supply copy of executed agreement);

i

section 66A (withdrawal from consumer credit agreement).

2

The following provisions apply to a small debtor-creditor-supplier agreement for restricted-use credit—

a

section 55 (regulations on disclosure of information);

b

section 56 (antecedent negotiations);

c

section 66A (withdrawal from consumer credit agreement).

F322A

In the case of an agreement to which the F33Cancellation of Contracts made in a Consumer's Home or Place of Work etc. Regulations 2008 apply the reference in subsection (2) to a small agreement shall be construed as if in section 17(1)(a) and (b) “£35 ” were substituted for “£50 ”.

3

F34Subsection (1)(c) applies only where the F343FCA so determines, and such a determination—

a

may be made subject to such conditions as the F343FCA thinks fit, and

b

shall be made only if the F343FCA is of the opinion that it is not against the interests of debtors.

3A

F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

If any term of an agreement falling within subsection F36(1)(d) is expressed in writing, regulations under section 60(1) shall apply to that term (subject to section 60(3)) as if the agreement were a regulated agreement not falling within subsection F36(1)(d).

F322PART VACURRENT ACCOUNT OVERDRAFTS

Annotations:

Amendments (Textual)

F322

Pt. 5A omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(27)

F32274AInformation to be provided on a current account agreement

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F32274BInformation to be provided on significant overdrawing without prior arrangement

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part VI Matters Arising During Currency of Credit or Hire Agreements

75 Liability of creditor for breaches by supplier.

1

If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.

2

Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor.

3

Subsection (1) does not apply to a claim—

a

under a non-commercial agreement, F38. . .

b

so far as the claim relates to any single item to which the supplier has attached a cash price not exceeding F39£100 or more than F40£30,000F41, or

F42c

under a debtor-creditor-supplier agreement for running-account credit—

i

which provides for the making of payments by the debtor in relation to specified periods which, in the case of an agreement which is not secured on land, do not exceed three months, and

ii

which requires that the number of payments to be made by the debtor in repayments of the whole amount of the credit provided in each such period shall not exceed one.

4

This section applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.

5

In an action brought against the creditor under subsection (1) he shall be entitled, in accordance with rules of court, to have the supplier made a party to the proceedings.

the linked credit agreement is entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

F3997

Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(c).

8

This section does not apply to an agreement secured on land.

C976 Duty to give notice before taking certain action.

1

The creditor or owner is not entitled to enforce a term of a regulated agreement by—

a

demanding earlier payment of any sum, or

b

recovering possession of any goods or land, or

c

treating any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred,

except by or after giving the debtor or hirer not less than seven days’ notice of his intention to do so.

2

Subsection (1) applies only where—

a

a period for the duration of the agreement is specified in the agreement, and

b

that period has not ended when the creditor or owner does an act mentioned in subsection (1),

but so applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified.

3

A notice under subsection (1) is ineffective if not in the prescribed form.

4

Subsection (1) does not prevent a creditor from treating the right to draw on any credit as restricted or deferred and taking such steps as may be necessary to make the restriction or deferment effective.

5

Regulations may provide that subsection (1) is not to apply to agreements described by the regulations.

6

Subsection (1) does not apply to a right of enforcement arising by reason of any breach by the debtor or hirer of the regulated agreement.

he is not entitled, while the default continues, to enforce the agreement; F44. . .

b

F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

This section does not apply to a non-commercial agreement.

c

an agreement under which the creditor provides the debtor with credit which exceeds £60, 260, or

d

an agreement entered into by the debtor wholly or predominantly for the purpose of a business carried on, or intended to be carried on, by him.

F40010

Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (9)(d).

78 Duty to give information to debtor under running-account credit agreement.

1

The creditor under a regulated agreement for running-account credit, within the prescribed period after receiving a request in writing to that effect from the debtor and payment of a fee of F50£1, shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it, together with a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—

a

the state of the account, and

b

the amount, if any currently payable under the agreement by the debtor to the creditor, and

c

the amounts and due dates of any payments which, if the debtor does not draw further on the account, will later become payable under the agreement by the debtor to the creditor.

a debtor-creditor agreement arising where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit, or

b

an agreement secured on land.

79 Duty to give hirer information.

1

The owner under a regulated consumer hire agreement, within the prescribed period after receiving a request in writing to that effect from the hirer and payment of a fee of F54£1, shall give to the hirer a copy of the executed agreement and of any other document referred to in it, together with a statement signed by or on behalf of the owner showing, according to the information to which it is practicable for him to refer, the total sum which has become payable under the agreement by the hirer but remains unpaid and the various amounts comprised in that total sum, with the date when each became due.

2

Subsection (1) does not apply to—

a

an agreement under which no sum is, or will or may become, payable by the hirer, or

b

a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

3

If the owner under an agreement fails to comply with subsection (1)—

a

he is not entitled, while the default continues, to enforce the agreement;F55. . .

b

F55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

This section does not apply to a non-commercial agreement.

80 Debtor or hirer to give information about goods.

1

Where a regulated agreement, other than a non-commercial agreement, requires the debtor or hirer to keep goods to which the agreement relates in his possession or control, he shall, within seven working days after he has received a request in writing to that effect from the creditor or owner, tell the creditor or owner where the goods are.

2

If the debtor or hirer fails to comply with subsection (1), and the default continues for 14 days, he commits an offence.

F40181 Appropriation of payments.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

containing provisions reproducing the combined effect of the two agreements,

and obligations outstanding in relation to the earlier agreement shall accordingly be treated as outstanding instead in relation to the modifying agreement.

the earlier agreement is a cancellable agreement, and

b

the modifying agreement is made within the period applicable under section 68 to the earlier agreement,

then, whether or not the modifying agreement would, apart from this subsection, be a cancellable agreement, it shall be treated as a cancellable agreement in respect of which a notice may be served under section 68 not later than the end of the period applicable under that section to the earlier agreement.

F615A

Subsection (5) does not apply where the modifying agreement is an exempt agreement F404... .

6

Except under subsection (5), a modifying agreement shall not be treated as a cancellable agreement.

F626A

If—

a

the earlier agreement is an agreement to which section 66A (right of withdrawal) applies, and

b

the modifying agreement is made within the period during which the debtor may give notice of withdrawal from the earlier agreement (see section 66A(2)),

then, whether or not the modifying agreement would, apart from this subsection, be an agreement to which section 66A applies, it shall be treated as such an agreement in respect of which notice may be given under subsection (2) of that section within the period referred to in paragraph (b) above.

6B

Except as provided for under subsection (6A) section 66A does not apply to a modifying agreement.

7

This section does not apply to a non-commercial agreement.

F4058

In this section, an “exempt agreement” means an agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) (regulated mortgage contracts and regulated home purchase plans) or article 60D (exemption relating to the purchase of land for non-residential purposes) of that Order.

F40682AAssignment of rights

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C1183 Liability for misuse of credit facilities.

1

The debtor under a regulated consumer credit agreement shall not be liable to the creditor for any loss arising from use of the credit facility by another person not acting, or to be treated as acting, as the debtor’s agent.

2

This section does not apply to a non-commercial agreement, or to any loss in so far as it arises from misuse of an instrument to which section 4 of the M1Cheques Act 1957 applies.

C1284 Misuse of credit-tokens.

1

Section 83 does not prevent the debtor under a credit-token agreement from being made liable to the extent of F63£50 (or the credit limit if lower) for loss to the creditor arising from use of the credit-token by other persons during a period beginning when the credit-token ceases to be in the possession of any authorised person and ending when the credit-token is once more in the possession of an authorised person.

2

Section 83 does not prevent the debtor under a credit-token agreement from being made liable to any extent for loss to the creditor from use of the credit-token by a person who acquired possession of it with the debtor’s consent.

3

Subsections (1) and (2) shall not apply to any use of the credit-token after the creditor has been given oral or written notice that it is lost or stolen, or is for any other reason liable to misuse.

F643A

Subsections (1) and (2) shall not apply to any use, in connection with a distance contract (other than an excepted contract), of a card which is a credit-token.

F643B

In subsection (3A), “distance contract ” and “excepted contract ” have the meanings given in the Consumer Protection (Distance Selling) Regulations 2000.

F653C

Subsections (1) and (2) shall not apply to any use, in connection with a distance contract within the meaning of the Financial Services (Distance Marketing) Regulations 2004, of a card which is a credit-token.

4

Subsections (1) and (2) shall not apply unless there are contained in the credit-token agreement in the prescribed manner particulars of the name, address and telephone number of a person stated to be the person to whom notice is to be given under subsection (3).

5

Notice under subsection (3) takes effect when received, but where it is given orally, and the agreement so requires, it shall be treated as not taking effect if not confirmed in writing within seven days.

6

Any sum paid by the debtor for the issue of the credit-token, to the extent (if any) that it has not been previously offset by use made of the credit-token, shall be treated as paid towards satisfaction of any liability under subsection (1) or (2).

7

The debtor, the creditor, and any person authorised by the debtor to use the credit-token, shall be authorised persons for the purposes of subsection (1).

8

Where two or more credit-tokens are given under one credit-token agreement, the preceding provisions of this section apply to each credit-token separately.

85 Duty on issue of new credit-tokens.

1

Whenever, in connection with a credit-token agreement, a credit-token (other than the first) is given by the creditor to the debtor, the creditor shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it.

Annotations:

Amendments (Textual)

F80

S. 86A and preceding cross-heading inserted (31.1.2007) by Consumer Credit Act 2006 (c. 14), ss. {8}, 71(2) (with Sch. 3 para. 5); S.I. 2007/123, art. 3(1), Sch. 1

86AF344F344FCA to prepare information sheets on arrears and default

1

The F345FCA shall prepare and issue an arrears information sheet and a default information sheet.

2

The arrears information sheet shall include information to help debtors and hirers who receive notices under section 86B or 86C.

3

The default information sheet shall include information to help debtors and hirers who receive default notices.

4

Regulations may make provision about the information to be included in an information sheet.

5

An information sheet takes effect for the purposes of this Part at the end of the period of three months beginning with the day on which F346it is issuedF461or on such later date as the FCA may specify in relation to the information sheet .

F3476

If the FCA revises an information sheet after it has been issued, it shall issue the revised information sheet.

7

A revised information sheet takes effect for the purposes of this Part at the end of the period of three months beginning with the day on which F348it is issuedF462or on such later date as the FCA may specify in relation to the information sheet .

F81Sums in arrears and default sums

Annotations:

Amendments (Textual)

F81

S. 86B and preceding cross-heading inserted (16.6.2006 for certain purposes and otherwise 1.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {9}, 71(2) (with Sch. 3 para. 6); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(3), Sch. 3

86CF72Notice of sums in arrears under running-account credit agreements

1

This section applies where at any time the following conditions are satisfied—

a

that the debtor under an applicable agreement is required to have made at least two payments under the agreement before that time;

b

that the last two payments which he is required to have made before that time have not been made;

c

that the creditor has not already been required to give a notice under this section in relation to either of those payments; and

d

if a judgment has been given in relation to the agreement before that time, that there is no sum still to be paid under the judgment by the debtor.

2

The creditor shall, no later than the end of the period within which he is next required to give a statement under section 78(4) in relation to the agreement, give the debtor a notice under this section.

3

The notice shall include a copy of the current arrears information sheet under section 86A.

4

The notice may be incorporated in a statement or other notice which the creditor gives the debtor in relation to the agreement by virtue of another provision of this Act.

5

The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice.

6

Regulations may make provision about the form and content of notices under this section.

7

In this section ‘applicable agreement’ means an agreement which—

a

is a regulated agreement for running-account credit; and

b

is neither a non-commercial agreement nor a small agreement.

F718

In this section “payments” means payments to be made at predetermined intervals provided for under the terms of the agreement.

1

This section applies where a default sum becomes payable under a regulated agreement by the debtor or hirer.

2

The creditor or owner shall, within the prescribed period after the default sum becomes payable, give the debtor or hirer a notice under this section.

3

The notice under this section may be incorporated in a statement or other notice which the creditor or owner gives the debtor or hirer in relation to the agreement by virtue of another provision of this Act.

4

The debtor or hirer shall have no liability to pay interest in connection with the default sum to the extent that the interest is calculated by reference to a period occurring before the 29th day after the day on which the debtor or hirer is given the notice under this section.

5

If the creditor or owner fails to give the debtor or hirer the notice under this section within the period mentioned in subsection (2), he shall not be entitled to enforce the agreement until the notice is given to the debtor or hirer.

6

The debtor or hirer shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice under this section.

7

Regulations may—

a

provide that this section does not apply in relation to a default sum which is less than a prescribed amount;

b

make provision about the form and content of notices under this section.

8

This section does not apply in relation to a non-commercial agreement or to a small agreement.

86FF75Interest on default sums

1

This section applies where a default sum becomes payable under a regulated agreement by the debtor or hirer.

2

The debtor or hirer shall only be liable to pay interest in connection with the default sum if the interest is simple interest.

Part VII Default and Termination

Default notices

C1387 Need for default notice.

1

Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice ”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

a

to terminate the agreement, or

b

to demand earlier payment of any sum, or

c

to recover possession of any goods or land, or

d

to treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred, or

e

to enforce any security.

2

Subsection (1) does not prevent the creditor from treating the right to draw upon any credit as restricted or deferred, and taking such steps as may be necessary to make the restriction or deferment effective.

3

The doing of an act by which a floating charge becomes fixed is not enforcement of a security.

4

Regulations may provide that subsection (1) is not to apply to agreements described by the regulations.

F825

Subsection (1)(d) does not apply in a case referred to in section 98A(4) (termination or suspension of debtor's right to draw on credit under open-end agreement).

88 Contents and effect of default notice.

1

The default notice must be in the prescribed form and specify—

a

the nature of the alleged breach;

b

if the breach is capable of remedy, what action is required to remedy it and the date before which that action is to be taken;

c

if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach, and the date before which it is to be paid.

2

A date specified under subsection (1) must not be less than F8314 days after the date of service of the default notice, and the creditor or owner shall not take action such as is mentioned in section 87(1) before the date so specified or (if no requirement is made under subsection (1)) before those F8314 days have elapsed.

3

The default notice must not treat as a breach failure to comply with a provision of the agreement which becomes operative only on breach of some other provision, but if the breach of that other provision is not duly remedied or compensation demanded under subsection (1) is not duly paid, or (where no requirement is made under subsection (1)) if the F8314 days mentioned in subsection (2) have elapsed, the creditor or owner may treat the failure as a breach and section 87(1) shall not apply to it.

4

The default notice must contain information in the prescribed terms about the consequences of failure to comply with it F84and any other prescribed matters relating to the agreement.

F854A

The default notice must also include a copy of the current default information sheet under section 86A.

5

A default notice making a requirement under subsection (1) may include a provision for the taking of action such as is mentioned in section 87(1) at any time after the restriction imposed by subsection (2) will cease, together with a statement that the provision will be ineffective if the breach is duly remedied or the compensation duly paid.

89 Compliance with default notice.

If before the date specified for that purpose in the default notice the debtor or hirer takes the action specified under section 88(1)(b) or (c) the breach shall be treated as not having occurred.

Further restriction of remedies for default

90 Retaking of protected hire-purchase etc. goods.

1

At any time when—

a

the debtor is in breach of a regulated hire-purchase or a regulated conditional sale agreement relating to goods, and

b

the debtor has paid to the creditor one-third or more of the total price of the goods, and

c

the property in the goods remains in the creditor,

the creditor is not entitled to recover possession of the goods from the debtor except on an order of the court.

2

Where under a hire-purchase or conditional sale agreement the creditor is required to carry out any installation and the agreement specifies, as part of the total price, the amount to be paid in respect of the installation (the “installation charge ”) the reference in subsection (1)(b) to one-third of the total price shall be construed as a reference to the aggregate of the installation charge and one-third of the remainder of the total price.

3

In a case where—

a

subsection (1)(a) is satisfied, but not subsection (1)(b), and

b

subsection (1)(b) was satisfied on a previous occasion in relation to an earlier agreement, being a regulated hire-purchase or regulated conditional sale agreement, between the same parties, and relating to any of the goods comprised in the later agreement (whether or not other goods were also included),

subsection (1) shall apply to the later agreement with the omission of paragraph (b).

4

If the later agreement is a modifying agreement, subsection (3) shall apply with the substitution, for the second reference to the later agreement, of a reference to the modifying agreement.

5

Subsection (1) shall not apply, or shall cease to apply, to an agreement if the debtor has terminated, or terminates, the agreement.

6

Where subsection (1) applies to an agreement at the death of the debtor, it shall continue to apply (in relation to the possessor of the goods) until the grant of probate or administration, or (in Scotland) confirmation (on which the personal representative would fall to be treated as the debtor).

7

Goods falling within this section are in this Act referred to as “protected goods ”.

91 Consequences of breach of s. 90.

If goods are recovered by the creditor in contravention of section 90—

a

the regulated agreement, if not previous terminated, shall terminate, and

b

the debtor shall be released from all liability under the agreement, and shall be entitled to recover from the creditor all sums paid by the debtor under the agreement.

92 Recovery of possession of goods or land.

need not be in writing.

95 Rebate on early settlement.

1

Regulations may provide for the allowance of a rebate of charges for credit to the debtor under a regulated consumer credit agreeement where, under section 94, on refinancing, on breach of the agreement, or for any other reason, his indebtedness is discharged F89or is discharged in part or becomes payable before the time fixed by the agreement, or any sum becomes payable by him before the time so fixed.

2

Regulations under subsection (1) may provide for calculation of the rebate by reference to any sums paid or payable by the debtor or his relative under or in connection with the agreement (whether to the creditor or some other person), including sums under linked transactions and other items in the total charge for credit.

0.5%, where that period is equal to or less than one year.

must not exceed the total amount of interest that would have been paid by the debtor under the agreement in the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor.

4

If a creditor could claim under either section 95A or this section, the creditor may choose under which section to claim.

96 Effect on linked transactions.

1

Where for any reason the indebtedness of the debtor under a regulated consumer credit agreement is discharged before the time fixed by the agreement, he, and any relative of his, shall at the same time be discharged from any liability under a linked transaction, other than a debt which has already become payable.

2

Subsection (1) does not apply to a linked transaction which is itself an agreement providing the debtor or his relative with credit.

3

Regulations may exclude linked transactions of the prescribed description from the operation of subsection (1).

97 Duty to give information.

1

The creditor under a regulated consumer credit agreement, within the prescribed period after he has received a request F90. . . to that effect from the debtor, shall give the debtor a statement in the prescribed form indicating, according to the information to which it is practicable for him to refer, the amount of the payment required to discharge the debtor’s indebtedness under the agreement, together with the prescribed particulars showing how the amount is arrived at.

2

Subsection (1) does not apply to a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

F912A

A request under subsection (1) need not be in writing unless the agreement is secured on land.

3

If the creditor fails to comply with subsection (1)—

a description of the agreement sufficient to identify it,

b

the name, postal address and, where appropriate, any other address of the creditor and the debtor,

c

where the creditor is claiming an amount under section 95A(2)F314or section 95B(2), that amount and the method used to determine it,

d

the amount of any rebate to which the debtor is entitled—

i

under the agreement, or

ii

by virtue of section 95 where that is higher,

e

where the amount of the rebate mentioned in paragraph (d)(ii) is given, a statement indicating that this amount has been calculated having regard to the Consumer Credit (Early Settlement) Regulations 2004,

f

where the debtor is not entitled to any rebate, a statement to this effect,

g

any change to—

i

the number, timing or amount of repayments to be made under the agreement, or

ii

the duration of the agreement,

which results from the partial discharge of the indebtedness of the debtor, and

h

the amount of the debtor's indebtedness remaining under the agreement at the date the creditor gives the statement.

Termination of agreements

98 Duty to give notice of termination (non-default cases).

1

The creditor or owner is not entitled to terminate a regulated agreement except by or after giving the debtor or hirer not less than seven days’ notice of the termination.

2

Subsection (1) applies only where—

a

a period for the duration of the agreement is specified in the agreement, and

b

that period has not ended when the creditor or owner does an act mentioned in subsection (1),

but so applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified.

3

A notice under subsection (1) is ineffective if not in the prescribed form.

4

5

Regulations may provide that subsection (1) is not to apply to agreements described by the regulations.

6

Subsection (1) does not apply to the termination of a regulated agreement by reason of any breach by the debtor or hirer of the agreement.

1

At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

2

Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.

3

Subsection (1) does not apply to a conditional sale agreement relating to land after the title to the land has passed to the debtor.

4

In the case of a conditional sale agreement relating to goods, where the property in the goods, having become vested in the debtor, is transferred to a person who does not become the debtor under the agreement, the debtor shall not thereafter be entitled to terminate the agreement under subsection (1).

5

Subject to subsection (4), where a debtor under a conditional sale agreement relating to goods terminates the agreement under this section after the property in the goods has become vested in him, the property in the goods shall thereupon vest in the person (the “previous owner ”) in whom it was vested immediately before it became vested in the debtor:

Provided that if the previous owner has died, or any other event has occurred whereby that property, if vested in him immediately before that event, would thereupon have vested in some other person, the property shall be treated as having devolved as if it had been vested in the previous owner immediately before his death or immediately before that event, as the case may be.

100 Liability of debtor on termination of hire-purchase etc. agreement.

1

Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination.

2

Where under a hire-purchase or conditional sale agreement the creditor is required to carry out any installation and the agreement specifies, as part of the total price, the amount to be paid in respect of the installation (the “installation charge ”) the reference in subsection (1) to one-half of the total price shall be construed as a reference to the aggregate of the installation charge and one-half of the remainder of the total price.

3

If in any action the court is satisfied that a sum less than the amount specified in subsection (1) would be equal to the loss sustained by the creditor in consequence of the termination of the agreement by the debtor, the court may make an order for the payment of that sum in lieu of the amount specified in subsection (1).

4

If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly.

5

Where the debtor, on the termination of the agreement, wrongfully retains possession of goods to which the agreement relates, then, in any action brought by the creditor to recover possession of the goods from the debtor, the court, unless it is satisfied that having regard to the circumstances it would not be just to do so, shall order the goods to be delivered to the creditor without giving the debtor an option to pay the value of the goods.

101 Right to terminate hire agreement.

1

The hirer under a regulated consumer hire agreement is entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement.

2

Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination.

3

A notice under subsection (1) shall not expire earlier than eighteen months after the making of the agreement, but apart from that the minimum period of notice to be given under subsection (1), unless the agreement provides for a shorter period, is as follows.

4

If the agreement provides for the making of payments by the hirer to the owner at equal intervals, the minimum period of notice is the length of one interval or three months, whichever is less.

5

If the agreement provides for the making of such payments at differing intervals, the minimum period of notice is the length of the shortest interval or three months, whichever is less.

6

In any other case, the minimum period of notice is three months.

7

This section does not apply to—

a

any agreement which provides for the making by the hirer of payments which in total (and without breach of the agreement) exceed F95£1,500 in any year, or

b

any agreement where—

i

goods are bailed or (in Scotland) hired to the hirer for the purposes of a business carried on by him, or the hirer holds himself out as requiring the goods for those purposes, and

ii

the goods are selected by the hirer, and acquired by the owner for the purposes of the agreement at the request of the hirer from any person other than the owner’s associate, or

c

any agreement where the hirer requires, or holds himself out as requiring, the goods for the purpose of bailing or hiring them to other persons in the course of a business carried on by him.

8

If, on an application made to the F349FCA by a person carrying on a consumer hire business, it appears to the F349FCA that it would be in the interest of hirers to do so, F96it may F350... direct that F97, subject to such conditions (if any) as it may specify, this section shall not apply to consumer hire agreements made by the applicant; and this Act shall have effect accordingly .

F988A

If it appears to the F351FCA that it would be in the interests of hirers to do so, it may F352... direct that, subject to such conditions (if any) as it may specify, this section shall not apply to a consumer hire agreement if the agreement falls within a specified description; and this Act shall have effect accordingly.

9

In the case of a modifying agreement, subsection (3) shall apply with the substitution, for “the making of the agreement ” of “the making of the original agreement ”.

102 Agency for receiving notice of rescission.

1

Where the debtor or hirer under a regulated agreement claims to have a right to rescind the agreement, each of the following shall be deemed to be the agent of the creditor or owner for the purpose of receiving any notice rescinding the agreement which is served by the debtor or hirer—

A breach of the duty imposed by subsection (1) is actionable as a breach of statutory duty.

104 Goods not to be treated as subject to landlord’s hypothec in Scotland.

Goods comprised in a hire-purchase agreement or goods comprised in a conditional sale agreement which have not become vested in the debtor shall not be treated in Scotland as subject to the landlord’s hypothec—

a

during the period between the service of a default notice in respect of the goods and the date on which the notice expires or is earlier complied with; or

b

if the agreement is enforceable on an order of the court only, during the period between the commencement and termination of an action by the creditor to enforce the agreement.

Part VIII Security

7

If—

a

in contravention of subsection (1) a security is not expressed in writing, or

b

a security instrument is improperly executed,

the security, so far as provided in relation to a regulated agreement, is enforceable against the surety on an order of the court only.

8

If an application for an order under subsection (7) is dismissed (except on technical grounds only) section 106 (ineffective securities) shall apply to the security.

9

Regulations under section 60(1) shall include provision requiring documents embodying regulated agreements also to embody any security provided in relation to a regulated agreement by the debtor or hirer.

106 Ineffective securities.

Where, under any provision of this Act, this section is applied to any security provided in relation to a regulated agreement, then, subject to section 177 (saving for registered charges)—

a

the security, so far as it is so provided, shall be treated as never having effect;

b

any property lodged with the creditor or owner solely for the purposes of the security as so provided shall be returned by him forthwith;

c

the creditor or owner shall take any necessary action to remove or cancel an entry in any register, so far as the entry relates to the security as so provided; and

d

any amount received by the creditor or owner on realisation of the security shall, so far as it is referable to the agreement, be repaid to the surety.

This section does not apply to a non-commercial agreement.

108 Duty to give information to surety under running-account credit agreement.

1

The creditor under a regulated agreement for running-account credit in relation to which security is provided, within the prescribed period after receiving a request in writing to that effect from the surety and payment of a fee of F104£1, shall give to the surety (if a different person from the debtor)—

a

a copy of the executed agreement (if any) and of any other document referred to in it;

b

a copy of the security instrument (if any); and

c

a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—

i

the state of the account, and

ii

the amount, if any, currently payable under the agreement by the debtor to the creditor, and

iii

the amounts and due dates of any payments which, if the debtor does not draw further on the account, will later become payable under the agreement by the debtor to the creditor.

2

3

Subsection (1) does not apply to—

a

an agreement under which no sum is, or will or may become, payable by the debtor, or

b

a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

4

If the creditor under an agreement fails to comply with subsection (1)—

a

he is not entitled, while the default continues, to enforce the security, so far as provided in relation to the agreement; F105. . .

b

F105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

This section does not apply to a non-commercial agreement.

1

The creditor or owner under a regulated agreement, within the prescribed period after receiving a request in writing to that effect from the debtor or hirer and payment of a fee of F108£1, shall give the debtor or hirer a copy of any security instrument executed in relation to the agreement after the making of the agreement.

2

Subsection (1) does not apply to—

a

a non-commercial agreement, or

b

an agreement under which no sum is, or will or may become, payable by the debtor or hirer, or

c

a request made less than one month after a previous request under subsection (1) relating to the same agreement was complied with.

3

If the creditor or owner under an agreement fails to comply with subsection (1)—

a

he is not entitled, while the default continues, to enforce the security (so far as provided in relation to the agreement); F109. . .

b

F109. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

111 Duty to give surety copy of default etc. notice.

1

When a default notice or a notice under section 76(1) or 98(1) is served on a debtor or hirer, a copy of the notice shall be served by the creditor or owner on any surety (if a different person from the debtor or hirer).

2

If the creditor or owner fails to comply with subsection (1) in the case of any surety, the security is enforceable against the surety (in respect of the breach or other matter to which the notice relates) on an order of the court only.

F408112 Realisation of securities.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

113 Act not to be evaded by use of security.

1

Where a security is provided in relation to an actual or prospective regulated agreement, the security shall not be enforced so as to benefit the creditor or owner, directly or indirectly, to an extent greater (whether as respects the amount of any payment or the time or manner of its being made) than would be the case if the security were not provided and any obligations of the debtor or hirer, or his relative, under or in relation to the agreement were carried out to the extent (if any) to which they would be enforced under this Act.

2

In accordance with subsection (1), where a regulated agreement is enforceable on an order of the court or the F353FCA only, any security provided in relation to the agreement is enforceable (so far as provided in relation to the agreement) where such an order has been made in relation to the agreement, but not otherwise.

3

Where—

a

a regulated agreement is cancelled under section 69(1) or becomes subject to section 69(2), or

b

a regulated agreement is terminated under section 91, or

c

in relation to any agreement an application for an order under section F40965(1) or 124(1) or a notice under section 28A of the Financial Services and Markets Act 2000 is dismissed (except on technical grounds only), or

d

a declaration is made by the court under section 142(1) (refusal of enforcement order) as respects any regulated agreement,

section 106 shall apply to any security provided in relation to the agreement.

4

Where subsection (3)(d) applies and the declaration relates to a part only of the regulated agreement, section 106 shall apply to the security only so far as it concerns that part.

5

In the case of a cancelled agreement, the duty imposed on the debtor or hirer by section 71 or 72 shall not be enforceable before the creditor or owner has discharged any duty imposed on him by section 106 (as applied by subsection (3)(a)).

6

If the security is provided in relation to a prospective agreement or transaction, the security shall be enforceable in relation to the agreement or transaction only after the time (if any) when the agreement is made; and until that time the person providing the security shall be entitled, by notice to the creditor or owner, to require that section 106 shall thereupon apply to the security.

7

Where an indemnity F110or guarantee is given in a case where the debtor or hirer is a minor, or F111an indemnity is given in a case where he is otherwise not of full capacity, the reference in subsection (1) to the extent to which his obligations would be enforced shall be read in relation to the indemnity F110or guarantee as a reference to the extent to which F112theyF112those obligations would be enforced if he were of full capacity.

8

Subsections (1) to (3) also apply where a security is provided in relation to an actual or prospective linked transaction, and in that case—

a

references to the agreement shall be read as references to the linked transaction, and

b

references to the creditor or owner shall be read as references to any person (other than the debtor or hirer, or his relative) who is a party, or prospective party, to the linked transaction.

Pledges

114C14 Pawn-receipts.

1

At the time he receives the article, a person who takes any article in pawn under a regulated agreement shall give to the person from whom he receives it a receipt in the prescribed form (a “pawn-receipt ”).

2

A person who takes any article in pawn from an individual whom he knows to be, or who appears to be and is, a minor commits an offence.

3

This section and sections F410117 to 122 do not apply to—

a

a pledge of documents of title F113or of bearer bonds, or

b

a non-commercial agreement.

F411115 Penalty for failure to supply copies of pledge agreement, etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

116 Redemption period. C15

1

A pawn is redeemable at any time within six months after it was taken.

2

Subject to subsection (1), the period within which a pawn is redeemable shall be the same as the period fixed by the parties for the duration of the credit secured by the pledge, or such longer period as they may agree.

3

If the pawn is not redeemed by the end of the period laid down by subsections (1) and (2) (the “redemption period ”), it nevertheless remains redeemable until it is realised by the pawnee under section 121 except where under section 120(1)(a) the property in it passes to the pawnee.

4

No special charge shall be made for redemption of a pawn after the end of the redemption period, and charges in respect of the safe keeping of the pawn shall not be at a higher rate after the end of the redemption period than before.

117 Redemption procedure. C16

1

On surrender of the pawn-receipt, and payment of the amount owing, at any time when the pawn is redeemable, the pawnee shall deliver the pawn to the bearer of the pawn-receipt.

2

Subsection (1) does not apply if the pawnee knows or has reasonable cause to suspect that the bearer of the pawn-receipt is neither the owner of the pawn nor authorised by the owner to redeem it.

3

The pawnee is not liable to any person in tort or delict for delivering the pawn where subsection (1) applies, or refusing to deliver it where the person demanding delivery does not comply with subsection (1) or, by reason of subsection (2), subsection (1) does not apply.

b

in any other case the pawn becomes realisable by the pawnee.

2

Where the debtor or hirer is entitled to apply to the court for a time order under section 129, subsection (1) shall apply with the substitution, for “at the end of the redemption period ” of “after the expiry of five days following the end of the redemption period ”.

121 Realisation of pawn. C20

1

When a pawn has become realisable by him, the pawnee may sell it, after giving to the pawnor (except in such cases as may be prescribed) not less than the prescribed period of notice of the intention to sell, indicating in the notice the asking price and such other particulars as may be prescribed.

2

Within the prescribed period after the sale takes place, the pawnee shall give the pawnor the prescribed information in writing as to the sale, its proceeds and expenses.

3

Where the net proceeds of sale are not less than the sum which, if the pawn had been redeemed on the date of the sale, would have been payable for its redemption, the debt secured by the pawn is discharged and any surplus shall be paid by the pawnee to the pawnor.

4

Where subsection (3) does not apply, the debt shall be treated as from the date of sale as equal to the amount by which the net proceeds of sale fall short of the sum which would have been payable for the redemption of the pawn on that date.

5

In this section the “net proceeds of sale ” is the amount realised (the “gross amount ”) less the expenses (if any) of the sale.

6

If the pawnor alleges that the gross amount is less than the true market value of the pawn on the date of sale, it is for the pawnee to prove that he and any agents employed by him in the sale used reasonable care to ensure that the true market value was obtained, and if he fails to do so subsections (3) and (4) shall have effect as if the reference in subsection (5) to the gross amount were a reference to the true market value.

7

If the pawnor alleges that the expenses of the sale were unreasonably high, it is for the pawnee to prove that they were reasonable, and if he fails to do so subsections (3) and (4) shall have effect as if the reference in subsection (5) to expenses were a reference to reasonable expenses.

122 Order in Scotland to deliver pawn. C21

1

As respects Scotland where—

a

a pawn is either—

i

an article which has been stolen, or

ii

an article which has been obtained by fraud, and a person is convicted of any offence in relation to the theft or, as the case may be, the fraud; or

b

a person is convicted of an offence under section 119(1),

the court by which that person is so convicted may order delivery of the pawn to the owner or the person otherwise entitled thereto.

2

A court making an order under subsection (1)(a) for delivery of a pawn may make the order subject to such conditions as to payment of the debt secured by the pawn as it thinks fit.

Negotiable instruments

123 Restrictions on taking and negotiating instruments.

1

A creditor or owner shall not take a negotiable instrument, other than a bank note or cheque, in discharge of any sum payable—

a

by the debtor or hirer under a regulated agreement, or

b

by any person as surety in relation to the agreement.

2

The creditor or owner shall not negotiate a cheque taken by him in discharge of a sum payable as mentioned in subsection (1) except to a banker (within the meaning of the M3Bills of Exchange Act 1882).

3

The creditor or owner shall not take a negotiable instrument as security for the discharge of any sum payable as mentioned in subsection (1).

4

A person takes a negotiable instrument as security for the discharge of a sum if the sum is intended to be paid in some other way, and the negotiable instrument is to be presented for payment only if the sum is not paid in that way.

5

This section does not apply where the regulated agreement is a non-commercial agreement.

6

The F354Treasury may by order provide that this section shall not apply where the regulated agreement has a connection with a country outside the United Kingdom.

124 Consequences of breach of s. 123.

1

After any contravention of section 123 has occurred in relation to a sum payable as mentioned in section 123(1)(a), the agreement under which the sum is payable is enforceable against the debtor or hirer on an order of the court only.

2

After any contravention of section 123 has occurred in relation to a sum payable by any surety, the security is enforceable on an order of the court only.

3

Where an application for an order under subsection (2) is dismissed (except on technical grounds only) section 106 shall apply to the security.

125 Holders in due course.

1

A person who takes a negotiable instrument in contravention of section 123(1) or (3) is not a holder in due course, and is not entitled to enforce the instrument.

2

Where a person negotiates a cheque in contravention of section 123(2), his doing so constitutes a defect in his title within the meaning of the M4Bills of Exchange Act 1882.

3

If a person mentioned in section 123(1)(a) or (b) ( “the protected person ”) becomes liable to a holder in due course of an instrument taken from the protected person in contravention of section 123(1) or (3), or taken from the protected person and negotiated in contravention of section 123(2), the creditor or owner shall indemnify the protected person in respect of that liability.

4

Nothing in this Act affects the rights of the holder in due course of any negotiable instrument.

Land mortgages

F336126 Enforcement of land mortgages.

1

A land mortgage securing an agreement of one the following types is enforceable (so far as is provided in relation to the agreement) on an order of the court only—

a

a regulated agreement;

b

a regulated mortgage contract;

c

a consumer credit agreement which would, but for article 60D of the Regulated Activities Order (exempt agreements: exemption relating to the purchase of land for non-residential purposes), be a regulated agreement.

2

Subject to section 140A(5) (unfair relationships between creditors and debtors), a regulated mortgage contract which would, but for article 60C(2) of the Regulated Activities Order (exempt agreements: exemption relating to the nature of the agreement), be a regulated agreement is to be treated for the purposes of Part 9 (judicial control) as if it were a regulated agreement.

3

In this section, “regulated mortgage contract” has the meaning given by article 61(3) of the Regulated Activities Order (regulated mortgage contracts).

Part IX Judicial Control

Enforcement of certain regulated agreements and securities

127 Enforcement orders in cases of infringement.

1

In the case of an application for an enforcement order under—

F117za

section 55(2) (disclosure of information), or

F118zb

section 61B(3) (duty to supply copy of overdraft agreement), or

a

section 65(1) (improperly executed agreements), or

b

section 105(7)(a) or (b) (improperly executed security instruments), or

c

section 111(2) (failure to serve copy of notice on surety), or

d

section 124(1) or (2) (taking of negotiable instrument in contravention of section 123),

the court shall dismiss the application if, but F119. . . only if, it considers it just to do so having regard to—

i

prejudice caused to any person by the contravention in question, and the degree of culpability for it; and

ii

the powers conferred on the court by subsection (2) and sections 135 and 136.

2

If it appears to the court just to do so, it may in an enforcement order reduce or discharge any sum payable by the debtor or hirer, or any surety, so as to compensate him for prejudice suffered as a result of the contravention in question.

3

F120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

F120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

F120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

128 Enforcement orders on death of debtor or hirer.

The court shall make an order under section 86(2) if, but only if, the creditor or owner proves that he has been unable to satisfy himself that the present and future obligations of the debtor or hirer under the agreement are likely to be discharged.

Extension of time

C22129 Time orders.

1

F121Subject to subsection (3) below, if it appears to the court just to do so—

indicates that he wants to make a proposal to the creditor or owner in relation to his making of payments under the agreement; and

c

gives details of that proposal.

130 Supplemental provisions about time orders.

1

Where in accordance with rules of court an offer to pay any sum by instalments is made by the debtor or hirer and accepted by the creditor or owner, the court may in accordance with rules of court make a time order under section 129(2)(a) giving effect to the offer without hearing evidence of means.

2

In the case of a hire-purchase or conditional sale agreement only, a time order under section 129(2)(a) may deal with sums which, although not payable by the debtor at the time the order is made, would if the agreement continued in force become payable under it subsequently.

3

A time order under section 129(2)(a) shall not be made where the regulated agreement is secured by a pledge if, by virtue of regulations made under section 76(5), 87(4) or 98(5), service of a notice is not necessary for enforcement of the pledge.

4

Where, following the making of a time order in relation to a regulated hire-purchase or conditional sale agreement or a regulated consumer hire agreement, the debtor or hirer is in possession of the goods, he shall be treated (except in the case of a debtor to whom the creditor’s title has passed) as a bailee or (in Scotland) a custodier of the goods under the terms of the agreement, notwithstanding that the agreement has been terminated.

5

Without prejudice to anything done by the creditor or owner before the commencement of the period specified in a time order made under section 129(2)(b) ( “the relevant period ”),—

a

he shall not while the relevant period subsists take in relation to the agreement any action such as is mentioned in section 87(1);

b

where—

i

a provision of the agreement ( “the secondary provision ”) becomes operative only on breach of another provision of the agreement ( “the primary provision ”), and

ii

the time order provides for the remedying of such a breach of the primary provision within the relevant period,

he shall not treat the secondary provision as operative before the end of that period;

c

if while the relevant period subsists the breach to which the order relates is remedied it shall be treated as not having occurred.

6

On the application of any person affected by a time order, the court may vary or revoke the order.

F135Interest

Annotations:

Amendments (Textual)

F135

S. 130A and preceding cross-heading inserted (16.6.2006 for certain purposes and otherwise 1.10.2008) by Consumer Credit Act 2006 (c. 14), ss. {17}, 71(2) (with Sch. 3 para. 13); S.I. 2006/1508, art. 3(1), Sch. 1; S.I. 2007/3300, art. 3(3), Sch. 3

This section does not apply in relation to a non-commercial agreement or to a small agreement.

9

In this section ‘post-judgment interest’ means interest to the extent calculated by reference to a period occurring after the giving of the judgment under which the judgment sum is required to be paid.

Protection of property pending proceedings

131 Protection orders.

The court, on the application of the creditor or owner under a regulated agreement, may make such orders as it thinks just for protecting any property of the creditor or owner, or property subject to any security, from damage or depreciation pending the determination of any proceedings under this Act, including orders restricting or prohibiting use of the property or giving directions as to its custody.

Hire and hire-purchase etc. agreements

132 Financial relief for hirer.

1

Where the owner under a regulated consumer hire agreement recovers possession of goods to which the agreement relates otherwise than by action, the hirer may apply to the court for an order that—

a

the whole or part of any sum paid by the hirer to the owner in respect of the goods shall be repaid, and

b

the obligation to pay the whole or part of any sum owed by the hirer to the owner in respect of the goods shall cease,

and if it appears to the court just to do so, having regard to the extent of the enjoyment of the goods by the hirer, the court shall grant the application in full or in part.

2

Where in proceedings relating to a regulated consumer hire agreement the court makes an order for the delivery to the owner of goods to which the agreement relates the court may include in the order the like provision as may be made in an order under subsection (1).

133 Hire-purchase etc. agreements: special powers of court.

1

If, in relation to a regulated hire-purchase or conditional sale agreement, it appears to the court just to do so—

a

on an application for an enforcement order or time order; or

b

in an action brought by the creditor to recover possession of goods to which the agreement relates,

the court may—

i

make an order (a “return order ”) for the return to the creditor of goods to which the agreement relates;

ii

make an order (a “transfer order ”) for the transfer to the debtor of the creditor’s title to certain goods to which the agreement relates ( “the transferred goods ”), and the return to the creditor of the remainder of the goods.

2

In determining for the purposes of this section how much of the total price has been paid ( “the paid-up sum ”), the court may—

a

treat any sum paid by the debtor, or owed by the creditor, in relation to the goods as part of the paid-up sum;

b

deduct any sum owed by the debtor in relation to the goods (otherwise than as part of the total price) from the paid-up sum,

and make corresponding reductions in amounts so owed.

3

Where a transfer order is made, the transferred goods shall be such of the goods to which the agreement relates as the court thinks just; but a transfer order shall be made only where the paid-up sum exceeds the part of the total price referable to the transferred goods by an amount equal to at least one-third of the unpaid balance of the total price.

4

Notwithstanding the making of a return order or transfer order, the debtor may at any time before the goods enter the possession of the creditor, on payment of the balance of the total price and the fulfilment of any other necessary conditions, claim the goods ordered to be returned to the creditor.

5

When, in pursuance of a time order or under this section, the total price of goods under a regulated hire-purchase agreement or regulated conditional sale agreement is paid and any other necessary conditions are fulfilled, the creditor’s title to the goods vests in the debtor.

6

If, in contravention of a return order or transfer order, any goods to which the order relates are not returned to the creditor, the court, on the application of the creditor, may—

a

revoke so much of the order as relates to those goods, and

b

order the debtor to pay the creditor the unpaid portion of so much of the total price as is referable to those goods.

7

For the purposes of this section, the part of the total price referable to any goods is the part assigned to those goods by the agreement or (if no such assignment is made) the part determined by the court to be reasonable.

134 Evidence of adverse detention in hire-purchase etc. cases.

1

Where goods are comprised in a regulated hire-purchase agreement, regulated conditional sale agreement or regulated consumer hire agreement, and the creditor or owner—

a

brings an action or makes an application to enforce a right to recover possession of the goods from the debtor or hirer, and

b

proves that a demand for the delivery of the goods was included in the default notice under section 88(5), or that, after the right to recover possession of the goods accrued but before the action was begun or the application was made, he made a request in writing to the debtor or hirer to surrender the goods,

then, for the purposes of the claim of the creditor or owner to recover possession of the goods, the possession of them by the debtor or hirer shall be deemed to be adverse to the creditor or owner.

2

In subsection (1) “the debtor or hirer ” includes a person in possession of the goods at any time between the debtor’s or hirer’s death and the grant of probate or administration, or (in Scotland) confirmation.

3

Nothing in this section affects a claim for damages for conversion or (in Scotland) for delict.

Supplemental provisions as to orders

135 Power to impose conditions, or suspend operation of order.

1

If it considers it just to do so, the court may in an order made by it in relation to a regulated agreement include provisions—

a

making the operation of any term of the order conditional on the doing of specified acts by any party to the proceedings;

b

suspending the operation of any term of the order either—

i

until such time as the court subsequently directs, or

ii

until the occurrence of a specified act or omission.

2

The court shall not suspend the operation of a term requiring the delivery up of goods by any person unless satisfied that the goods are in his possession or control.

3

In the case of a consumer hire agreement, the court shall not so use its powers under subsection (1)(b) as to extend the period for which, under the terms of the agreement, the hirer is entitled to possession of the goods to which the agreement relates.

4

On the application of any person affected by a provision included under subsection (1), the court may vary the provision.

136 Power to vary agreements and securities.

The court may in an order made by it under this Act include such provision as it considers just for amending any agreement or security in consequence of a term of the order.

Extortionate credit bargains

137 Extortionate credit bargains.

F125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

138 When bargains are extortionate.

F126. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

139 Reopening of extortionate agreements.

F127. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

140 Interpretation of sections 137 to 139.

F128. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F136Unfair relationships

Annotations:

Amendments (Textual)

F136

S. 140A and preceding cross-heading inserted (6.4.2007) by Consumer Credit Act 2006 (c. 14), ss. {19}, 71(2) (with Sch. 3 para. 16); S.I. 2007/123, art. 3(2), Sch. 2

140AUnfair relationships between creditors and debtors

1

The court may make an order under section 140B in connection with a credit agreement if it determines that the relationship between the creditor and the debtor arising out of the agreement (or the agreement taken with any related agreement) is unfair to the debtor because of one or more of the following—

a

any of the terms of the agreement or of any related agreement;

b

the way in which the creditor has exercised or enforced any of his rights under the agreement or any related agreement;

c

any other thing done (or not done) by, or on behalf of, the creditor (either before or after the making of the agreement or any related agreement).

2

In deciding whether to make a determination under this section the court shall have regard to all matters it thinks relevant (including matters relating to the creditor and matters relating to the debtor).

3

For the purposes of this section the court shall (except to the extent that it is not appropriate to do so) treat anything done (or not done) by, or on behalf of, or in relation to, an associate or a former associate of the creditor as if done (or not done) by, or on behalf of, or in relation to, the creditor.

4

A determination may be made under this section in relation to a relationship notwithstanding that the relationship may have ended.

5

An order under section 140B shall not be made in connection with a credit agreement which is an exempt agreement F412for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) of that Order (regulated mortgage contracts and regulated home purchase plans).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Miscellaneous

141 Jurisdiction and parties.

1

In England and Wales the county court shall have jurisdiction to hear and determine—

a

any action by the creditor or owner to enforce a regulated agreement or any security relating to it;

b

any action to enforce any linked transaction against the debtor or hirer or his relative,

and such an action shall not be brought in any other court.

2

Where an action or application is brought in the High Court which, by virtue of this Act, ought to have been brought in the county court it shall not be treated as improperly brought, but shall be transferred to the county court.

F1313

In Scotland the sheriff court shall have jurisdiction to hear and determine any action referred to in subsection (1) and such an action shall not be brought in any other court.

3A

Subject to subsection (3B) an action which is brought in the sheriff court by virtue of subsection (3) shall be brought only in one of the following courts, namely—

a

the court for the place where the debtor or hirer is domiciled (within the meaning of section 41 or 42 of the Civil Jurisdiction and Judgments Act 1982);

b

the court for the place where the debtor or hirer carries on business; and

c

where the purpose of the action is to assert, declare or determine proprietary or possessory rights, or rights of security, in or over moveable property, or to obtain authority to dispose of moveable property, the court for the place where the property is situated.

3B

Subsection (3A) shall not apply—

a

and an interested party applies to the court for a declaration under this subsection, the court may make a declaration to that effect.

Northern Ireland

143 Jurisdiction of county court in Northern Ireland.

Without prejudice to any provision which may be made by rules of court made in relation to county courts in Northern Ireland such rules may provide—

a

that any action or application such as is mentioned in section 141(4) which is brought against the debtor or hirer in the county court may be brought in the county court for the division in which the debtor or hirer resided or carried on business at the date on which he last made a payment under the regulated agreement;

b

that an application by a debtor or hirer or any surety under section 129(1)(b) F132or (ba), 132(1)F133. . . or 142(1)(b) which is brought in the county court may be brought in the county court for the division in which the debtor, or, as the case may be, the hirer or surety resides or carries on business;

c

for service of process on persons outside Northern Ireland.

144 Appeal from county court in Northern Ireland.

Any person dissatisfied—

a

with an order, whether adverse to him or in his favour, made by a county court in Northern Ireland in the exercise of any jurisdiction conferred by this Act, or

b

with the dismissal or refusal by such a county court of any action or application instituted by him under the provisions of this Act,

shall be entitled to appeal from the order or from the dismissal or refusal as if the order, dismissal or refusal had been made in exercise of the jurisdiction conferred by Part III of the County Courts F134Northern Ireland) Order 1980 and the appeal brought under Part VI of that Order and Articles 61 and 62 of that Order shall apply accordingly.

Part X Ancillary Credit Businesses

Definitions

145 Types of ancillary credit business.

1

An ancillary credit business is any business so far as it comprises or relates to—

a

credit brokerage,

b

debt-adjusting,

c

debt-counselling,

d

debt-collecting,

F137da

debt administration,

F138db

the provision of credit information services, or

e

the operation of a credit reference agency.

F4142

“Credit brokerage” means the carrying on of an activity of the kind specified by article 36A(1)(a) to (c) of the Regulated Activities Order (credit broking), disregarding the effect of paragraph (2) of that article.

F4155

“Debt adjusting” means the carrying on of an activity of the kind specified by article 39D of that Order (debt adjusting).

F4166

“Debt-counselling” means the carrying on of an activity of the kind specified by article 39E of that Order (debt-counselling).

F4177

“Debt-collecting” means the carrying on of an activity of the kind specified by article 39F of that Order (debt-collecting).

F4187A

“Debt administration” means the carrying on of an activity of the kind specified by article 39G of that Order (debt administration), disregarding the effect of paragraph (3) of that article.

F4197B

A person (“P”) provides credit information services if P carries on, by way of business, an activity of the kind specified by article 89A(1) or (2) of that Order (providing credit information services).

F4208

A person (“P”) operates a credit reference agency if P carries on, by way of business, an activity of the kind specified by article 89B of that Order (providing credit references).

F465146 Exceptions from section 145.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F465...

F465147 Application of Part III.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F465 C35148 Agreement for services of unlicensed trader.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F465 C36149 Regulated agreements made on introductions by unlicensed credit-broker.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F465150 Appeals to Secretary of State against licensing decisions.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Seeking business

151F465 Advertisements.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

152F465 Application of sections 52 to 54 to credit brokerage etc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

153 Definition of canvassing off trade premises (agreements for ancillary credit services).

1

An individual (the “canvasser ”) canvasses off trade premises the services of a person carrying on an ancillary credit business if he solicits the entry of another individual (the “consumer ”) into an agreement for the provision to the consumer of those services by making oral representations to the consumer, or any other individual, during a visit by the canvasser to any place (not excluded by subsection (2)) where the consumer, or that other individual as the case may be, is, being a visit—

a

carried out for the purpose of making such oral representations to individuals who are at that place, but

b

not carried out in response to a request made on a previous occasion.

2

A place is excluded from subsection (1) if it is a place where (whether on a permanent or temporary basis)—

a

the ancillary credit business is carried on, or

b

any business is carried on by the canvasser or the person whose employee or agent the canvasser is, or by the consumer.

154 Prohibition of canvassing certain ancillary credit services off trade premises.

It is an offence to canvass off trade premises the services of a person carrying on a business of credit-brokerage, debt-adjusting F139, debt-counselling or the provision of credit information services.

155 Right to recover brokerage fees.

1

F140Subject to subsection (2A),the excess over F141£5 of a fee or commission for his services charged by a credit-broker to an individual to whom this subsection applies shall cease to be payable or, as the case may be, shall be recoverable by the individual if the introduction does not result in his entering into a relevant agreement within the six months following the introduction (disregarding any agreement which is cancelled under section 69(1) or becomes subject to section 69(2)).

2

Subsection (1) applies to an individual who sought an introduction for a purpose which would have been fulfilled by his entry into—

a

a regulated agreement, or

b

in the case of an individual F421desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by that individual or a relative of that individual, an agreement for credit secured on land,

F422c

a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order, or

d

an agreement which is not a regulated credit agreement or a regulated consumer hire agreement but which would be such an agreement if the law applicable to the agreement were the law of a part of the United Kingdom.

F1422A

But subsection (1) does not apply where—

a

the fee or commission relates to the effecting of an introduction of a kind mentioned in F423article 36E of the Regulated Activities Order (activities in relation to certain agreements relating to land); and

b

the person charging that fee or commission is an authorised person or an appointed representative, within the meaning of the Financial Services and Markets Act 2000.

3

An agreement is a relevant agreement for the purposes of subsection (1) in relation to an individual if it is an agreement such as is referred to in subsection (2) in relation to that individual.

4

In the case of an individual desiring to obtain credit under a consumer credit agreement, any sum payable or paid by him to a credit-broker otherwise than as a fee or commission for the credit-broker’s services shall for the purposes of subsection (1) be treated as such a fee or commission if it enters, or would enter, into the total charge for credit.

F321...

Annotations:

Amendments (Textual)

F321

a consumer hire agreement, or

b

an agreement secured on land.

158 Duty of agency to disclose filed information.

1

A credit reference agency, within the prescribed period after receiving,—

F148a

a request in writing to that effect from a consumer,

b

such particulars as the agency may reasonably require to enable them to identify the file, and

c

a fee of F149£2,

shall give the consumer a copy of the file relating to F150it kept by the agency.

2

When giving a copy of the file under subsection (1), the agency shall also give the consumer a statement in the prescribed form of F151the consumer’s rights under section 159.

3

If the agency does not keep a file relating to the consumer it shall give F151the consumernotice of that fact, but need not return any money paid.

4

If the agency contravenes any provision of this section it commits an offence.

F1524A

3

Instead of giving the consumer a copy of the file, the agency shall within the prescribed period give notice to the consumer that it is proceeding under this section, and by notice give the consumer such information included in or based on entries in the file as the F356FCA may direct, together with a statement in the prescribed form of the consumer’s rights under subsections (4) and (5).

4

If within 28 days after receiving the information given F158to the consumer under subsection (3), or such longer period as the F356FCA may allow, the consumer—

a

gives notice to the F356FCA that F159the consumer is dissatisfied with the information, and

b

satisfies the F356FCA that F159the consumer has taken such steps in relation to the agency as may be reasonable with a view to removing the cause of F159the consumer’s dissatisfaction, and

c

pays the F356FCAF425the prescribed fee,

the F356FCA may direct the agency to give the F356FCA a copy of the file, and the F356FCA may disclose to the consumer such of the information on the file as the F356FCA thinks fit.

5

Section 159 applies with any necessary modifications to information given to the consumer under this section as it applies to information given under section 158.

6

If an agency making an election under subsection (2) fails to comply with subsection (3) or (4) it commits an offence.

F1607

In this section “consumer ” has the same meaning as in section 158.

F426160ACredit intermediaries

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part XI Enforcement of Act

161 Enforcement authorities.

1

The following authorities ( “enforcement authorities ”) have a duty to enforce this Act and regulations made under it—

F427a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

in Great Britain, the local weights and measures authority,

c

in Northern Ireland, the Department of Commerce for Northern Ireland.

F4281A

Subsection (1) does not limit any function of the FCA in relation to the enforcement of this Act or regulations made under it.

2

F161. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Every local weights and measures authority shall, whenever the F357FCA requires, report to F162it in such form and with such particulars as F162it requires on the exercise of their functions under this Act.

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F163

C30162 Powers of entry and inspection.

1

A duly authorised officer of an enforcement authority, at all reasonable hours and on production, if required, of his credentials, may—

a

in order to ascertain whether a breach of any provision of or under this Act has been committed, inspect any goods and enter any premises (other than premises used only as a dwelling);

b

if he has reasonable cause to suspect that a breach of any provision of or under this Act has been committed, in order to ascertain whether it has been committed, require any person—

i

carrying on, or employed in connection with, a business to produce any F164. . . documents relating to it; or

ii

having control of any information relating to a business F165to provide him with that information;

F166. . . ;

C23c

if he has reasonable cause to believe that a breach of any provision of or under this Act has been committed, seize and detain any goods in order to ascertain (by testing or otherwise) whether such a breach has been committed;

C23d

seize and detain any goods, F167. . . or documents which he has reason to believe may be required as evidence in proceedings for an offence under this Act;

e

for the purpose of exercising his powers under this subsection to seize goods, F167. . . or documents, but only if and to the extent that it is reasonably necessary for securing that the provisions of this Act and of any regulations made under it are duly observed, require any person having authority to do so to break open any container and, if that person does not comply, break it open himself.

2

An officer seizing goods, F167. . . or documents in exercise of his powers under this section shall not do so without informing the person he seizes them from.

3

If a justice of the peace, on sworn information in writing, or, in Scotland, a sheriff or a magistrate or justice of the peace, on evidence on oath,—

a

is satisfied that there is reasonable ground to believe either—

i

that any goods, F167. . . or documents which a duly authorised officer has power to inspect under this section are on any premises and their inspection is likely to disclose evidence of a breach of any provision of or under this Act; or

ii

that a breach of any provision of or under this Act has been, is being or is about to be committed on any premises; and

b

is also satisfied either—

i

that admission to the premises has been or is likely to be refused and that notice of intention to apply for a warrant under this subsection has been given to the occupier; or

ii

that an application for admission, or the giving of such a notice, would defeat the object of the entry or that the premises are unoccupied or that the occupier is temporarily absent and it might defeat the object of the entry to wait for his return,

the justice or, as the case may be, the sheriff or magistrate may by warrant under his hand, which shall continue in force for a period of one month, authorise an officer of an enforcement authority to enter the premises (by force if need be).

4

An officer entering premises by virtue of this section may take such other persons and equipment with him as he thinks necessary; and on leaving premises entered by virtue of a warrant under subsection (3) shall, if they are unoccupied or the occupier is temporarily absent, leave them as effectively secured against tres-passers as he found them.

F4295

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

A person who is not a duly authorised officer of an enforcement authority, but purports to act as such under this section, commits an offence.

7

F168. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4308

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C24 C31163 Compensation for loss.

1

Where, in exercising his powers under section 162, an officer of an enforcement authority seizes and detains goods and their owner suffers loss by reason of—

a

that seizure, or

b

the loss, damage or deterioration of the goods during detention,

then, unless the owner is convicted of an offence under this Act committed in relation to the goods, the authority shall compensate him for the loss so suffered.

2

Any dispute as to the right to or amount of any compensation under subsection (1) shall be determined by arbitration.

C32164 Power to make test purchases etc.

1

An enforcement authority may—

a

make, or authorise any of their officers to make on their behalf, such purchases of goods; and

b

authorise any of their officers to procure the provision of such services or facilities or to enter into such agreements or other transactions,

as may appear to them expedient for determining whether any provisions made by or under this Act are being complied with.

2

Any act done by an officer authorised to do it under subsection (1) shall be treated for the purposes of this Act as done by him as an individual on his own behalf.

3

Any goods seized by an officer under this Act may be tested, and in the event of such a test he shall inform the person mentioned in section 162(2) of the test results.

4

Where any test leads to proceedings under this Act, the enforcement authority shall—

a

if the goods were purchased, inform the person they were purchased from of the test results, and

b

allow any person against whom the proceedings are taken to have the goods tested on his behalf if it is reasonably practicable to do so.

C33165 Obstruction of authorised officers.

1

Any person who—

a

wilfully obstructs an officer of an enforcement authority acting in pursuance of this Act; or

b

wilfully fails to comply with any requirement properly made to him by such an officer under section 162; or

c

without reasonable cause fails to give such an officer (so acting) other assistance or information he may reasonably require in performing his functions under this Act,

commits an offence.

F4311A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

If any person, in giving such information as is mentioned in subsection (1)(c), makes any statement which he knows to be false, he commits an offence.

3

Nothing in this section requires a person to answer any question or give any information if to do so might incriminate that person or (where that person is F169married or a civil partner) the spouse or civil partner of that person.

F358166 Notification of convictions and judgments to F358FCA.

Where a person is convicted of an offence or has a judgment given against him by or before any court in the United Kingdom and it appears to the court—

a

having regard to the functions of the F359FCA under the Financial Services and Markets Act 2000 or this Act, that the conviction or judgment should be brought to the F360FCA's attention, and

b

that it may not be brought to F170its attention unless arrangements for that purpose are made by the court,

the court may make such arrangements notwithstanding that the proceedings have been finally disposed of.

C26 C27 C29167C25 Penalties.

1

An offence under a provision of this Act specified in column 1 of Schedule 1 is triable in the mode or modes indicated in column 3, and on conviction is punishable as indicated in column 4 (where a period of time indicates the maximum term of imprisonment, and a monetary amount indicates the maximum fine, for the offence in question).

F4322

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

168 Defences.

1

In any proceedings for an offence under this Act it is a defence for the person charged to prove—

a

that his act or omission was due to a mistake, or to reliance on information supplied to him, or to an act or omission by another person, or to an accident or some other cause beyond his control, and

b

that he took all reasonable precautions and exercised all due diligence to avoid such an act or omission by himself or any person under his control.

2

If in any case the defence provided by subsection (1) involves the allegation that the act or omission was due to an act or omission by another person or to reliance on information supplied by another person, the person charged shall not, without leave of the court, be entitled to rely on that defence unless, within a period ending seven clear days before the hearing, he has served on the prosecutor a notice giving such information identifying or assisting in the identification of that other person as was then in his possession.

169 Offences by bodies corporate.

Where at any time a body corporate commits an offence under this Act with the consent or connivance of, or because of neglect by, any individual, the individual commits the like offence if at that time—

a

he is a director, manager, secretary or similar officer of the body corporate, or

b

he is purporting to act as such an officer, or

c

the body corporate is managed by its members of whom he is one.

170 No further sanctions for breach of Act.

1

A breach of any requirement made (otherwise than by any court) by or under this Act shall incur no civil or criminal sanction as being such a breach, except to the extent (if any) expressly provided by or under this Act F361or by or under the Financial Services and Markets Act 2000 by virtue of an order made under section 107 of the Financial Services Act 2012.

2

In exercising F171its functions under this Act the F362FCA may take account of any matter appearing to F172it to constitute a breach of a requirement made by or under this Act, whether or not any sanction for that breach is provided by or under this Act and, if it is so provided, whether or not proceedings have been brought in respect of the breach.

3

Subsection (1) does not prevent the grant of an injunction, or the making of an order of certiorari, mandamus or prohibition or as respects Scotland the grant of an interdict or of an order under section 91 of the M5Court of Session Act 1868 (order for specific performance of statutory duty).

171 Onus of proof in various proceedings.

1

If an agreement contains a term signifying that in the opinion of the parties section 10(3)(b)(iii) does not apply to the agreement, it shall be taken not to apply unless the contrary is proved.

2

It shall be assumed in any proceedings, unless the contrary is proved, that when a person initiated a transaction as mentioned in section 19(1)(c) he knew the principal agreement had been made, or contemplated that it might be made.

F4333

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

In proceedings brought by the creditor under a credit-token agreement—

a

it is for the creditor to prove that the credit-token was lawfully supplied to the debtor, and was accepted by him, and

b

if the debtor alleges that any use made of the credit-token was not authorised by him, it is for the creditor to prove either—

i

that the use was so authorised, or

ii

that the use occurred before the creditor had been given notice under section 84(3).

5

In proceedings under section 50(1) in respect of a document received by a minor at any school or other educational establishment for minors, it is for the person sending it to him at that establishment to prove that he did not know or suspect it to be such an establishment.

6

In proceedings under section 119(1) it is for the pawnee to prove that he had reasonable cause to refuse to allow the pawn to be redeemed.

7

F173. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

172 Statements by creditor or owner to be binding.

1

A statement by a creditor or owner is binding on him if given under—

section 77(1),
section 78(1),
section 79(1),
section 97(1),
section 107(1)(c),
section 108(1)(c), or
section 109(1)(c),

2

Where a trader—

a

gives a customer a notice in compliance with section 103(1)(b), or

b

gives a customer a notice under section 103(1) asserting that the customer is not indebted to him under an agreement,

the notice is binding on the trader.

3

Where in proceedings before any court—

a

it is sought to rely on a statement or notice given as mentioned in subsection (1) or (2), and

b

the statement or notice is shown to be incorrect,

the court may direct such relief (if any) to be given to the creditor or owner from the operation of subsection (1) or (2) as appears to the court to be just.

173 Contracting-out forbidden.

1

A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

2

Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.

3

Notwithstanding subsection (1), a provision of this Act under which a thing may be done in relation to any person on an order of the court or the F434FCA only shall not be taken to prevent its being done at any time with that person’s consent given at that time, but the refusal of such consent shall not give rise to any liability.

Part XII Supplemental

174 Restrictions on disclosure of information.

F174. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

C34174AF235Powers to require provision of information or documents etc.

1

Every power conferred on a relevant authority by or under this Act (however expressed) to require the provision or production of information or documents includes the power—

a

to require information to be provided or produced in such form as the authority may specify, including, in relation to information recorded otherwise than in a legible form, in a legible form;

b

to take copies of, or extracts from, any documents provided or produced by virtue of the exercise of the power;

c

to require the person who is required to provide or produce any information or document by virtue of the exercise of the power—

i

to state, to the best of his knowledge and belief, where the information or document is;

ii

to give an explanation of the information or document;

iii

to secure that any information provided or produced, whether in a document or otherwise, is verified in such manner as may be specified by the authority;

iv

to secure that any document provided or produced is authenticated in such manner as may be so specified;

d

2

A document transmitted in accordance with subsection (1) shall, unless the contrary is proved, be treated for the purposes of this Act, except section 69, as having been delivered on the working day immediately following the day on which it is transmitted.

3

In this section, “electronic address” includes any number or address used for the purposes of receiving electronic communications.

177 Saving for registered charges.

1

Nothing in this Act affects the rights of a proprietor of a registered charge (within the meaning of the F177Land Registration Act 2002), who—

a

became the proprietor under a transfer for valuable consideration without notice of any defect in the title arising (apart from this section) by virtue of this Act, or

b

derives title from such a proprietor.

2

Nothing in this Act affects the operation of section 104 of the M6Law of Property Act 1925 (protection of purchaser where mortgagee exercises power of sale).

3

Subsection (1) does not apply to a proprietor carrying on F178a consumer credit business, a consumer hire business or a business of debt-collecting or debt administration .

4

Where, by virtue of subsection (1), a land mortgage is enforced which apart from this section would be treated as never having effect, the original creditor or owner shall be liable to indemnify the debtor or hirer against any loss thereby suffered by him.

5

In the application of this section to Scotland for subsections (1) to (3) there shall be substituted the following subsections—

1
Nothing in this Act affects the rights of a creditor in a heritable security who—
a
became the creditor under a transfer for value without notice of any defect in the title arising (apart from this section) by virtue of this Act; or
b
derives title from such a creditor.
2
Nothing in this Act affects the operation of section 41 of the Conveyancing (Scotland) Act 1924 (protection of purchasers), or of that section as applied to standard securities by section 32 of the Conveyancing and Feudal Reform (Scotland) Act 1970.
3
Subsection (1) does not apply to a creditor carrying on F178a consumer credit business, a consumer hire business or a business of debt-collecting or debt administration .

6

In the application of this section to Northern Ireland—

a

any reference to the proprietor of a registered charge (within the meaning of the F177Land Registration Act 2002) shall be construed as a reference to the registered owner of a charge under the M7Local Registration of Title (Ireland) Act 1891 or Part IV of the M8Land Registration Act (Northern Ireland) 1970, and

b

for the reference to section 104 of the M9Law of Property Act 1925 there shall be substituted a reference to section 21 of the M10Conveyancing and Law of Property Act 1881 and section 5 of the M11Conveyancing Act 1911.

178 Local Acts.

The F363Treasury or the Department of Commerce for Northern Ireland may by order make such amendments or repeals of any provision of any local Act as appears to the F363Treasury or, as the case may be, the Department, necessary or expedient in consequence of the replacement by this Act of the enactments relating to pawnbrokers and moneylenders.

Regulations, orders, etc.

179 Power to prescribe form etc. of secondary documents.

1

Regulations may be made as to the form and content of credit-cards, trading-checks, receipts, vouchers and other documents or things issued by creditors, owners or suppliers under or in connection with regulated agreements or by other persons in connection with linked transactions, and may in particular—

a

require specified information to be included in the pre-scribed manner in documents, and other specified material to be excluded;

b

contain requirements to ensure that specified information is clearly brought to the attention of the debtor or hirer, or his relative, and that one part of a document is not given insufficient or excessive prominence compared with another.

2

If a person issues any document or thing in contravention of regulations under subsection (1) then, as from the time of the contravention but without prejudice to anything done before it, this Act shall apply as if the regulated agreement had been improperly executed by reason of a contravention of regulations under section 60(1).

180 Power to prescribe form etc. of copies.

1

Regulations may be made as to the form and content of documents to be issued as copies of any executed agreement, security instrument or other document referred to in this Act, and may in particular—

a

require specified information to be included in the prescribed manner in any copy, and contain requirements to ensure that such information is clearly brought to the attention of a reader of the copy;

b

authorise the omission from a copy of certain material contained in the original, or the inclusion of such material in condensed form.

2

A duty imposed by any provision of this Act F436... to supply a copy of any document—

a

is not satisfied unless the copy supplied is in the prescribed form and conforms to the prescribed requirements;

b

is not infringed by the omission of any material, or its inclusion in condensed form, if that is authorised by regulations;

and references in this Act to copies shall be construed accordingly.

3

Regulations may provide that a duty imposed by this Act to supply a copy of a document referred to in an unexecuted agreement or an executed agreement shall not apply to documents of a kind specified in the regulations.

181 Power to alter monetary limits etc.

1

The F364Treasury may by order made by statutory instrument amend, or further amend, any of the following provisions of this Act so as to reduce or increase a sum mentioned in that provision, namely, sections F437... 17(1), F179. . . F437... 70(6), 75(3)(b), 77(1), 78(1), 79(1), 84(1), 101(7)(a), 107(1), 108(1), 109(1), 110(1), F437... F179. . . F180140B(6), 155(1) and 158(1).

2

An order under subsection (1) amending section F438... 17(1), F181. . . F438... 75(3)(b) F181. . . F182or 140B(6) shall be of no effect unless a draft of the order has been laid before and approved by each House of Parliament.

182 Regulations and orders.

1

Any power of the F365Treasury to make regulations or orders under this Act, except the power conferred by sections F439... 181 and 192 shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

1A

F183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

Where a power to make regulations or orders F184. . . is exercisable by the F365TreasuryF185. . . by virtue of this Act, regulations or orders F184. . . made in the exercise of that power may—

a

make different provision in relation to different cases or classes of case, and

b

exclude certain cases or classes of case, and

c

contain such transitional provisions as the F365Treasury thinks fit.

3

Regulations may provide that specified expressions, when used as described by the regulations, are to be given the prescribed meaning, notwithstanding that another meaning is intended by the person using them.

4

Any power conferred on the F365Treasury by this Act to make orders includes power to vary or revoke an order so made.

F186183 Determinations etc. by F366FCA .

1

The F367FCA may vary or revoke any determination made, or direction given, by it under this Act.

F4402

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

184 Associates.

F1871

A person is an associate of an individual if that person is—

a

the individual’s husband or wife or civil partner,

b

a relative of—

i

the individual, or

ii

the individual’s husband or wife or civil partner, or

c

the husband or wife or civil partner of a relative of—

i

the individual, or

ii

the individual’s husband or wife or civil partner.

Where a regulated agreement has two or more debtors or hirers (not being a partnership or an unincorporated body of persons), section 86 applies to the death of any of them.

5

An agreement for the provision of credit, or the bailment or (in Scotland) the hiring of goods, to two or more persons jointly where—

a

one or more of those persons is an individual, and

b

one or more of them is F195not an individual ,

is a consumer credit agreement or consumer hire agreement if it would have been one had they all been individuals; and F196each person within paragraph (b) shall accordingly be included among the debtors or hirers under the agreement.

6

Where subsection (5) applies, references in this Act to the signing of any document by the debtor or hirer shall be construed in relation to a body corporate F197within paragraph (b) of that subsection as referring to a signing on behalf of the body corporate.

186 Agreement with more than one creditor or owner.

Where an actual or prospective regulated agreement has two or more creditors or owners, anything required by or under this Act to be done to, or in relation to, or by, the creditor or owner shall be effective if done to, or in relation to, or by, any one of them.

187 Arrangements between creditor and supplier.

1

A consumer credit agreement shall be treated as entered into under pre-existing arrangements between a creditor and a supplier if it is entered into in accordance with, or in furtherance of, arrangements previously made between persons mentioned in subsection (4)(a), (b) or (c).

2

A consumer credit agreement shall be treated as entered into in contemplation of future arrangements between a creditor and a supplier if it is entered into in the expectation that arrangements will subsequently be made between persons mentioned in subsection (4)(a), (b) or (c) for the supply of cash, goods and services (or any of them) to be financed by the consumer credit agreement.

3

Arrangements shall be disregarded for the purposes of subsection (1) or (2) if—

a

they are arrangements for the making, in specified circumstances, of payments to the supplier by the creditor, and

b

the creditor holds himself out as willing to make, in such circumstances, payments of the kind to suppliers generally.

F1983A

Arrangements shall also be disregarded for the purposes of subsections (1) and (2) if they are arrangements for the electronic transfer of funds from a current account at a bank within the meaning of the Bankers’ Books Evidence Act 1879.

4

The persons referred to in subsections (1) and (2) are—

a

the creditor and the supplier;

b

one of them and an associate of the other’s;

c

an associate of one and an associate of the other’s.

5

Where the creditor is an associate of the supplier’s, the consumer credit agreement shall be treated, unless the contrary is proved, as entered into under pre-existing arrangements between the creditor and the supplier.

187AF234Definition of ‘default sum’

1

In this Act ‘default sum’ means, in relation to the debtor or hirer under a regulated agreement, a sum (other than a sum of interest) which is payable by him under the agreement in connection with a breach of the agreement by him.

2

But a sum is not a default sum in relation to the debtor or hirer simply because, as a consequence of his breach of the agreement, he is required to pay it earlier than he would otherwise have had to.

188 Examples of use of new terminology.

1

Schedule 2 shall have effect for illustrating the use of terminology employed in this Act.

2

The examples given in Schedule 2 are not exhaustive.

3

In the case of conflict between Schedule 2 and any other provision of this Act, that other provision shall prevail.

4

The F368Treasury may by order amend Schedule 2 by adding further examples or in any other way.

189 Definitions.

1

In this Act, unless the context otherwise requires—

“advertisement ” includes every form of advertising, whether in a publication, by television or radio, by display of notices, signs, labels, showcards or goods, by distribution of samples, circulars, catalogues, price lists or other material, by exhibition of pictures, models or films, or in any other way, and references to the publishing of advertisements shall be construed accordingly;
F442...
“ancillary credit business ” has the meaning given by section 145(1);
“antecedent negotiations ” has the meaning given by section 56;
F442...
F199“appropriate method” means–
1. a
  post, or
2. b
  transmission in the form of an electronic communication in accordance with section 176A(1);”
“assignment ”, in relation to Scotland, means assignation;
“associate ” shall be construed in accordance with section 184;
F200“authorised business overdraft agreement” means a debtor-creditor agreement which provides authorisation in advance for the debtor to overdraw on a current account, where the agreement is entered into by the debtor wholly or predominantly for the purposes of the debtor's business (see subsection (2A));
“authorised non-business overdraft agreement” means a debtor-creditor agreement which provides authorisation in advance for the debtor to overdraw on a current account where—
1. a
  the credit must be repaid on demand or within three months, and
2. b
  the agreement is not entered into by the debtor wholly or predominantly for the purposes of the debtor's business (see subsection (2A));
F201. . .
“bill of sale ” has the meaning given by section 4 of the M12Bills of Sale Act 1878 or, for Northern Ireland, by section 4 of the M13Bills of Sale (Ireland) Act 1879;
F202 “building society ” means a building society within the meaning of the Building Societies Act 1986;
“business ” includes profession or trade, and references to a business apply subject to subsection (2);
“cancellable agreement ” means a regulated agreement which, by virtue of section 67, may be cancelled by the debtor or hirer;
“canvass ” shall be construed in accordance with sections 48 and 153;
“cash ” includes money in any form;
“charity ” means as respects England and Wales a charity registered under F203the Charities Act 2011 or an exempt charity (within the meaning of that Act), F204as respects Northern Ireland an institution or other organisation established for charitable purposes only ( “organisation ” including any persons administering a trust and “charitable ” being construed in the same way as if it were contained in the Income Tax Acts) F205and as respects Scotland a body entered in the Scottish Charity Register;
“conditional sale agreement ” means an agreement for the sale of goods or land under which the purchase price or part of it is payable by instalments, and the property in the goods or land is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods or land) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;
“consumer credit agreement ” has the meaning given by section 8, and includes a consumer credit agreement which is cancelled under section 69(1), or becomes subject to section 69(2), so far as the agreement remains in force;
F206‘consumer credit business’ means any business being carried on by a person so far as it comprises or relates to—
1. a
  the provision of credit by him, or
2. b
  otherwise his being a creditor,
under regulated consumer credit agreements;
F207“consumer hire business” means any business being carried on by a person so far as it comprises or relates to—
1. a
  the bailment or (in Scotland) the hiring of goods by him, or
2. b
  otherwise his being an owner,
under regulated consumer hire agreements;
“consumer hire business ” means any business so far as it comprises or relates to the bailment or (in Scotland) the hiring of goods under regulated consumer hire agreements;
“controller ”, in relation to a body corporate, means a person—
1. a
  in accordance with whose directions or instructions the directors of the body corporate or of another body corporate which is its controller (or any of them) are accustomed to act, or
2. b
  who, either alone or with any associate or associates, is entitled to exercise, or control the exercise of, one third or more of the voting power at any general meeting of the body corporate or of another body corporate which is its controller;
“copy ” shall be construed in accordance with section 180;
F208. . .
“court ” means in relation to England and Wales the county court, in relation to Scotland the sheriff court and in relation to Northern Ireland the High Court or the county court;
“credit ” shall be construed in accordance with section 9;
“credit-broker ” means a person carrying on a business of credit brokerage;
“credit brokerage ” has the meaning given by section 145(2);
F209‘credit information services’ F443is to be read in accordance with section 145(7B).
F210“credit intermediary” has the meaning given by section 160A;
“credit limit ” has the meaning given by section 10(2);
“creditor ” means F328(except in relation to green deal plans: see instead section 189B(2)) the person providing credit under a consumer credit agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer credit agreement, includes the prospective creditor;
“credit reference agency ” F444is to be read in accordance with section 145(8);
“credit-sale agreement ” means an agreement for the sale of goods, under which the purchase price or part of it is payable by instalments, but which is not a conditional sale agreement;
“credit-token ” has the meaning given by section 14(1);
“credit-token agreement ” means a regulated agreement for the provision of credit in connection with the use of a credit-token;
“debt-adjusting ” has the meaning given by section 145(5);
F211‘debt administration’ has the meaning given by section 145(7A);
“debt-collecting ” has the meaning given by section 145(7);
“debt-counselling ” has the meaning given by section 145(6);
“debtor ” means F329(except in relation to green deal plans: see instead section 189B(3)) the individual receiving credit under a consumer credit agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer credit agreement includes the prospective debtor;
“debtor-creditor agreement ” has the meaning given by section 13;
“debtor-creditor-supplier agreement ” has the meaning given by section 12;
“default notice ” has the meaning given by section 87(1);
F212‘default sum’ has the meaning given by section 187A;
“deposit ” means F445...any sum payable by a debtor or hirer by way of deposit or down-payment, or credited or to be credited to him on account of any deposit or down-payment, whether the sum is to be or has been paid to the creditor or owner or any other person, or is to be or has been discharged by a payment of money or a transfer or delivery of goods or by any other means;
F213‘documents’ includes information recorded in any form;
F214. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“electric line ” has the meaning given by F215the Electricity Act 1989 or, for Northern Ireland, F216the Electricity (Northern Ireland) Order 1992
F217“electronic communication” means an electronic communication within the meaning of the Electronic Communications Act 2000 (c. 7)“
“embodies ” and related words shall be construed in accordance with subsection (4);
“enforcement authority ” has the meaning given by section 161(1);
“enforcement order ” means an order under section 65(1), 105(7)(a) or (b), 111(2) or 124(1) or (2);
“executed agreement ” means a document, signed by or on behalf of the parties, embodying the terms of a regulated agreement, or such of them as have been reduced to writing;
F442...
F369“FCA” means the Financial Conduct Authority;
“finance ” means to finance wholly or partly, and “financed ” and “refinanced ” shall be construed accordingly;
“file ” and “copy of the file ” have the meanings given by section 158(5);
“fixed-sum credit ” has the meaning given by section 10(1)(b);
“friendly society ” means a society registered F218or treated as registered under the Friendly Societies Act 1974 or the Friendly Societies Act 1992 or a society within the meaning of the M14Friendly Societies Act (Northern Ireland) 1970;
“future arrangements ” shall be construed in accordance with section 187;
F370...
“give ” means deliver or send F219by an appropriate method to;
“goods ” M15 has the meaning given by F220section 61(1) of the Sale of Goods Act 1979;
F330 “green deal plan” has the meaning given by section 1 of the Energy Act 2011;
F442...
“High Court ” means Her Majesty’s High Court of Justice, or the Court of Session in Scotland or the High Court of Justice in Northern Ireland;
“hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—
1. a
  goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
2. b
  the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
3. i
  the exercise of an option to purchase by that person,
4. ii
  the doing of any other specified act by any party to the agreement,
5. iii
  the happening of any other specified event;
“hirer ” means the individual to whom goods are bailed or (in Scotland) hired under a consumer hire agreement, or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer hire agreement includes the prospective hirer;
F221“individual” includes—
1. a
  a partnership consisting of two or three persons not all of whom are bodies corporate; and
2. b
  an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership;
“installation ” means—
1. a
  the installing of any electric line or any gas or water pipe,
2. b
  the fixing of goods to the premises where they are to be used, and the alteration of premises to enable goods to be used on them,
3. c
  where it is reasonably necessary that goods should be constructed or erected on the premises where they are to be used, any work carried out for the purpose of constructing or erecting them on those premises;
F201. . .
“judgment ” includes an order or decree made by any court;
“land ”, includes an interest in land, and in relation to Scotland includes heritable subjects of whatever description;
“land improvement company ” means an improvement company as defined by section 7 of the M16Improvement of Land Act 1899;
“land mortgage ” includes any security charged on land;
F442...
F442...
F442...
“linked transaction ” has the meaning given by section 19(1);
“local authority ”, in relation to England F222. . ., means . . . F223, a county council, a London borough council, a district council, the Common Council of the City of London, or the Council of the Isles of Scilly F224in relation to Wales means a county council or a county borough council,, and in relation to Scotland, means a F225council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, and, in relation to Northern Ireland, means a district council;
F226. . .
“modifying agreement ” has the meaning given by section 82(2);
“mortgage ”, in relation to Scotland, includes any heritable security;
“multiple agreement ” has the meaning given by section 18(1);
“negotiator ” has the meaning given by section 56(1);
“non-commercial agreement ” means a consumer credit agreement or a consumer hire agreement not made by the creditor or owner in the course of a business carried on by him;
“notice ” means notice in writing;
“notice of cancellation ” has the meaning given by section 69(1);
F371...
F227“open-end” in relation to a consumer credit agreement, means of no fixed duration;
“owner ” means a person who bails or (in Scotland) hires out goods under a consumer hire agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer hire agreement, includes the prospective bailor or person from whom the goods are to be hired;
“pawn ” means any article subject to a pledge;
“pawn-receipt ” has the meaning given by section 114;
“pawnee ” and “pawnor ” include any person to whom the rights and duties of the original pawnee or the original pawnor, as the case may be, have passed by assignment or operation of law;
“payment ” includes tender;
F228. . .
“pledge ” means the pawnee’s rights over an article taken in pawn;
“prescribed ” means prescribed by regulations made by the Secretary of State;
“pre-existing arrangements ” shall be construed in accordance with section 187;
“principal agreement ” has the meaning given by section 19(1);
“protected goods ” has the meaning given by section 90(7);
F442...
“redemption period ” has the meaning given by section 116(3);
F446“Regulated Activities Order” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;
F442...
F447 “regulated agreement ” means a consumer credit agreement which is a regulated agreement (within the meaning of section 8(3)) or a consumer hire agreement which is a regulated agreement (within the meaning of section 15(2));
“regulations ” means regulations made by the F372Treasury;
“relative ”, except in section 184, means a person who is an associate by virtue of section 184(1);
“representation ” includes any condition or warranty, and any other statement or undertaking, whether oral or in writing;
“restricted-use credit agreement ” and “restricted-use credit ” have the meanings given by section 11(1);
“rules of court ”, in relation to Northern Ireland means, in relation to the High Court, rules made under section 7 of the M17Northern Ireland Act 1962, and, in relation to any other court, rules made by the authority having for the time being power to make rules regulating the practice and procedure in that court;
“running-account credit ” shall be construed in accordance with section 10;
“security ”, in relation to an actual or prospective consumer credit agreement or consumer hire agreement, or any linked transaction, means a mortgage, charge, pledge, bond, debenture, indemnity, guarantee, bill, note or other right provided by the debtor or hirer, or at his request (express or implied), to secure the carrying out of the obligations of the debtor or hirer under the agreement;
“security instrument ” has the meaning given by section 105(2);
“serve on ” means deliver or send F219by an appropriate method to;
“signed ” shall be construed in accordance with subsection (3);
“small agreement ” has the meaning given by section 17(1), and “small ” in relation to an agreement within any category shall be construed accordingly;
F442...
F442...
“supplier ” has the meaning given by section 11(1)(b) or 12(c) or 13(c) or, in relation to an agreement falling within section 11(1)(a), means the creditor, and includes a person to whom the rights and duties of a supplier (as so defined) have passed by assignment or operation of law, or (in relation to a prospective agreement) the prospective supplier;
“surety ” means the person by whom any security is provided, or the person to whom his rights and duties in relation to the security have passed by assignment or operation of law;
“technical grounds ” shall be construed in accordance with subsection (5);
“time order ” has the meaning given by section 129(1);
F448 “total charge for credit ” has the meaning given by section 20;
“total price ” means the total sum payable by the debtor under a hire-purchase agreement or a conditional sale agreement, including any sum payable on the exercise of an option to purchase, but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement;
F229. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“unexecuted agreement ” means a document embodying the terms of a prospective regulated agreement, or such of them as it is intended to reduce to writing;
F442...
“unrestricted-use credit agreement ” and “unresticted-use credit ” have the meanings given by section 11(2);
“working day ” means any day other than—
1. a
  Saturday or Sunday,
2. b
  Christmas Day or Good Friday,
3. c
  a bank holiday within the meaning given by section 1 of the M18Banking and Financial Dealings Act 1971.

F2301A

In sections F449... 70(4), 73(4) and 75(2) F231. . . ‘costs’, in relation to proceedings in Scotland, means expenses.

2

A person is not to be treated as carrying on a particular type of business merely because occasionally he enters into transactions belonging to a business of that type.

F2322A

For the purpose of the definitions of “authorised business overdraft agreement” and “authorised non-business overdraft agreement” F450article 60C(5) and (6) of the Regulated Activities Order applies.

3

Any provision of this Act requiring a document to be signed is complied with by a body corporate if the document is sealed by that body.

This subsection does not apply to Scotland.

4

A document embodies a provision if the provision is set out either in the document itself or in another document referred to in it.

5

An application dismissed by the court F466... shall, if the court F466... so certifies, be taken to be dismissed on technical grounds only.

6

Except in so far as the context otherwise requires, any reference in this Act to an enactment shall be construed as a reference to that enactment as amended by or under any other enactment, including this Act.

7

In this Act, except where otherwise indicated—

a

a reference to a numbered Part, section or Schedule is a reference to the Part or section of, or the Schedule to, this Act so numbered, and

b

a reference in a section to a numbered subsection is a reference to the subsection of that section so numbered, and

c

a reference in a section, subsection or Schedule to a numbered paragraph is a reference to the paragraph of that section, subsection or Schedule so numbered.

F451189A Meaning of “consumer credit EEA firm ”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

if more than one description is specified and at the relevant time different persons fall (or fell) within the descriptions, each of those persons,

and except as provided by this subsection, a person is not and is not to be treated as the debtor in relation to the agreement.

4

Where by virtue of subsection (3) a reference to the debtor in a listed provision is to be read as a reference to the improver, it is to be assumed in applying the provision in relation to the green deal consumer credit agreement that the improver is provided with credit on the terms of the green deal plan.

5

Where by virtue of subsection (3) a reference to the debtor in a listed provision is to be read as a reference to a person who is not the improver, it is to be assumed in applying the provision in relation to the green deal consumer credit agreement—

a

if the provision in question is any of sections 94 to 97A (which together make provision about early payment by the debtor), that the person is provided with credit on terms that the person is liable to pay all the instalments under the green deal plan;

b

in any other case, that the person is provided with credit on those terms of the green deal plan that bind or benefit the person for any period by virtue of regulations under section 6(2)(b) of the Energy Act 2011.

6

References in this section and in Schedule 2A to the “improver”, “first bill payer”, “current bill payer” and “previous bill payer” are to be read as follows—

a

a person is the “improver” if the person—

i

is the owner or occupier of the property, and

ii

is the person who makes (or has made or proposes to make) the arrangement for the green deal plan,

but this is subject to section 189C(4) in cases where the person is not an individual;

b

a person is the “first bill payer” if the person is liable to pay the energy bills for the property at the time when the green deal plan is commenced;

c

a person is the “current bill payer” if the person is liable by virtue of section 1(6)(a) of the Energy Act 2011 to pay instalments under the plan as a result of being for the time being liable to pay the energy bills for the property;

d

a person is a “previous bill payer” if, as a result of previously falling within paragraph (c) for an earlier period, the person has an outstanding payment liability under the plan in respect of that period.

7

References in this Act to a prospective consumer credit agreement, and references to the creditor and debtor in relation to such an agreement, are to be read in accordance with this section in the case of prospective green deal consumer credit agreements.

8

In this section and in section 189C—

“domestic property” means a building or part of a building that is occupied as a dwelling or (if not occupied) is intended to be occupied as a dwelling;
“energy bill” has the same meaning as in section 1 of the Energy Act 2011;
“energy efficiency improvements” has the meaning given by section 2(4) of the Energy Act 2011;
“green deal consumer credit agreement” means a green deal plan that is to be treated as a consumer credit agreement for the purposes of this Act by virtue of subsection (1);
“improvement costs”, in relation to a green deal plan, are the costs of the energy efficiency improvements to the property which are to be paid by instalments under the plan after the time when credit is to be treated as being advanced by virtue of subsection (2) (but ignoring any interest or other charges for credit in determining those costs);
“listed provision” means a provision of this Act listed in the first column of Schedule 2A;
“occupier” and “owner” have the same meanings as in Chapter 1 of Part 1 of the Energy Act 2011;
“property”, in relation to a green deal plan, means the property to which the energy efficiency improvements under the plan are or are intended to be made.

189CSection 189B: supplementary provision

1

A green deal consumer credit agreement is to be treated—

a

as an agreement for fixed-sum credit within the meaning of section 10(1)(b);

b

as a credit agreement for the purposes of sections 140A and 140B (and section 140C(1) is to be read accordingly).

2

Where a green deal consumer credit agreement is a regulated agreement within the meaning of this Act (see section 8(3)), it is to be treated as a restricted-use agreement that falls within section 11(1)(a).

3

Sections 81, 140C(2) and 176(5) do not apply in the case of a green deal consumer credit agreement.

4

A person who is not an individual is to be treated as the improver in relation to any listed provision in the first column of the table in Schedule 2A only if the corresponding entry in the second column of the table so specifies.

5

For the purposes of section 189B—

a

a green deal plan is commenced when—

i

the occupier or owner of the property signs in the prescribed manner a document in relation to the plan in accordance with section 61(1) (requirements as to form and content of regulated agreements), or

ii

if the occupier or owner of the property does not sign such a document, the green deal plan is made;

b

a person is liable to pay the energy bills for a property at any time if the person would be treated as the bill payer for the property at that time for the purposes of Chapter 1 of Part 1 of the Energy Act 2011 (see section 2(3) and (10)).

189DSection 189B: temporary provision

1

For the period beginning on the date when this section comes into force and ending on 31st March 2014, the table in Schedule 2A is to be read as if it included the following entries—

Section of this Act	References to “debtor” are to be read as references to the…
Sections 16, 16A, 16B, 16C	- improver
Section 20	- improver - first bill payer
Section 40	- improver (including an improver who is not an individual) - current bill payer - previous bill payer
Section 55A	- improver - first bill payer, except for the purposes of subsection (1)(b)
Section 55B	- improver - first bill payer
Section 82A	- improver - current bill payer - previous bill payer
Section 145	- current bill payer - previous bill payer
Section 149	- improver (including an improver who is not an individual) - current bill payer - previous bill payer
Section 160A	- improver

2

This section ceases to have effect on 1st April 2014.

This Act may be cited as the Consumer Credit Act 1974.

2

This Act extends to Northern Ireland.

SCHEDULES

F237F307SCHEDULE A1The Consumer Credit Appeals Tribunal

Annotations:

Amendments (Textual)

F237

Sch. A1 omitted (1.9.2009) by virtue of The Transfer of Functions of the Consumer Credit Appeals Tribunal Order 2009 (S.I. 2009/1835), arts. 1, 4(1), Sch. 1 para. 9 (with Sch. 4)

F307

Sch. A1 inserted (1.12.2007 for specified provisions and 6.4.2008 for further specified provisions and otherwise prosp.) by Consumer Credit Act 2006 (c. 14), ss. 55(2), 71(2), Sch. 1 (with Sch. 3 para. 23(2)); S.I. 2007/3300, arts. 3(1), 3(2), Sch. 1, Sch. 2

Part 1Interpretation

1

In this Schedule—

“the Deputy President” means the Deputy President of the Consumer Credit Appeals Tribunal;
“lay panel” means the panel established under paragraph 3(3);
“panel of chairmen” means the panel established under paragraph 3(1);
“party” means, in relation to an appeal, the appellant or the OFT;
“the President” means the President of the Consumer Credit Appeals Tribunal;
“rules” means rules under section 40A(3) of this Act;
“specified” means specified by rules.

Part 2The Tribunal

The President and the Deputy President

2

b

such other costs of the Tribunal as he may determine.

Part 3Constitution of the Tribunal

7

1

On an appeal to the Tribunal, the persons to act as members of the Tribunal for the purposes of the appeal shall be selected from the panel of chairmen or the lay panel.

2

The selection shall be in accordance with arrangements made by the President for the purposes of this paragraph.

3

Those arrangements shall provide for at least one member to be a person selected from the panel of chairmen.

4

If it appears to the Tribunal that a matter before it involves a question of fact of special difficulty, it may appoint one or more experts to provide assistance.

Part 4Tribunal powers and procedure

Sittings

8

The Tribunal shall sit at such times and in such places as the Lord Chancellor may direct.

Evidence

9

1

Subject to sub-paragraph (2), the Tribunal may, on an appeal, consider any evidence that it thinks relevant, whether or not it was available to the OFT at the time it made the determination appealed against.

2

Rules may make provision restricting the evidence that the Tribunal may consider on an appeal in specified circumstances.

Rules on procedure

10

Rules may include, amongst other things, provision—

a

about the withdrawal of appeals;

b

about persons who may appear on behalf of a party to an appeal;

c

about how an appeal is to be dealt with if a person acting as member of the Tribunal in respect of the appeal becomes unable to act;

d

setting time limits in relation to anything that is to be done for the purposes of an appeal or for such limits to be set by the Tribunal or a member of the panel of chairmen;

e

for time limits (including the period specified for the purposes of section 41(1) of this Act) to be extended by the Tribunal or a member of the panel of chairmen;

f

conferring powers on the Tribunal or a member of the panel of chairmen to give such directions to the parties to an appeal as it or he thinks fit for purposes connected with the conduct and disposal of the appeal;

g

about the holding of hearings by the Tribunal or a member of the panel of chairmen (including for such hearings to be held in private);

h

placing restrictions on the disclosure of information and documents or for such restrictions to be imposed by the Tribunal or a member of the panel of chairmen;

i

about the consequences of a failure to comply with a requirement imposed by or under any rule (including for the immediate dismissal or allowing of an appeal if the Tribunal or a member of the panel of chairmen thinks fit);

j

for proceedings on different appeals (including appeals with different appellants) to take place concurrently;

k

for the suspension of determinations of the OFT;

l

for the suspension of decisions of the Tribunal;

m

for the Tribunal to reconsider its decision disposing of an appeal where it has reason to believe that the decision was wrongly made because of an administrative error made by a member of its staff.

Council on Tribunals

after the determination appealed against was made but before the application was remitted, any notification that is required to be given by the applicant under section 6(7) shall be given within the period of 28 days beginning with the day on which the application was remitted.

Decisions of the Tribunal

13

1

A decision of the Tribunal may be taken by majority.

2

A decision of the Tribunal disposing of an appeal shall—

a

state whether it was unanimous or taken by majority; and

b

be recorded in a document which—

i

contains a statement of the reasons for the decision and any other specified information; and

ii

is signed and dated by a member of the panel of chairmen.

3

Where the Tribunal disposes of an appeal it shall—

a

send to each party to the appeal a copy of the document mentioned in sub-paragraph (2)(b); and

b

publish that document in such manner as it thinks fit.

4

The Tribunal may exclude from what it publishes under sub-paragraph (3)(b) information of a specified description.

Costs

b

in Scotland, as if it were an interlocutor of the Court of Session.

SCHEDULE 1 Prosecution and Punishment of Offences

Section 167.

Annotations:

Amendments (Textual)

F454

Entries in Sch. 1 Table omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(64) (with S.I. 2014/366, arts. 1(3)(4), 13(2)(b)

F238

Entries in Sch. 1 Table repealed (26.5.2008) by The Consumer Protection from Unfair Trading Regulations 2008 (S.I. 2008/1277), reg. 30(3), Sch. 1 (with savings in reg. 28(2)(3))

F239

Words substituted by virtue of (E.W.) Criminal Justice Act 1982 (c. 48, SIF 39:1), ss. 38, 46, (S.) by Criminal Procedure (Scotland) Act 1975 (c. 21, SIF 39:1), s. 289F, 289G and (N.I.) by S.I. 1984/703 (N.I. 3), arts. 5, 6

1	2	3	4
Section	Offence	Mode of prosecution	Imprisonment or fine
F454. . .	F454... .	F454. . .	F454. . .
		F454. . .	F454. . .
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
		F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
49(1)	Canvassing debtor-creditor agreements off trade premises.	(a) Summarily.	£400.
		(b) On indictment.	1 year or a fine or both.
49(2)	Soliciting debtor-creditor agreements during visits made in response to previous oral requests.	(a) Summarily.	£400.
		(b) On indictment.	1 year or a fine or both.
50(1)	Sending circulars to minors.	(a) Summarily.	£400.
		(b) On indictment.	1 year or a fine or both.
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80(2)	Failure to tell creditor or owner whereabouts of goods.	Summarily.	F239level 3 on the standard scale.
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	F238. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
114(2)	Taking pledges from minors.	(a) Summarily.	£400.
		(b) On indictment.	1 year or a fine or both.
F454. . .	F454. . .	F454. . .	F454. . .
119(1)	Unreasonable refusal to allow pawn to be redeemed.	Summarily.	F239level 4 on the standard scale.
154	Canvassing ancillary credit services off trade premises.	(a) Summarily.	£200.
		(b) On indictment.	1 year or a fine or both.
157(3)	Refusal to give name etc. of credit reference agency.	Summarily.	F239level 4 on the standard scale.
158(4)	Failure of credit reference agency to disclose filed information.	Summarily.	F239level 4 on the standard scale.
159(6)	Failure of credit reference agency to correct information.	Summarily.	F239level 4 on the standard scale.
160(6)	Failure of credit reference agency to comply with section 160(3) or (4).	Summarily.	F239level 4 on the standard scale.
F454. . .	F454. . .	F454. . .	F454. . .
162(6)	Impersonation of enforcement authority officers.	(a) Summarily.	£400.
		(b) On indictment.	2 years or a fine or both.
165(1)	Obstruction of enforcement authority officers.	Summarily.	F239level 4 on the standard scale.
165(2)	Giving false information to enforcement authority officers.	(a) Summarily.	£400.
		(b) On indictment.	2 years or a fine or both.
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .
F454. . .	F454. . .	F454. . .	F454. . .
		F454. . .	F454. . .

SCHEDULE 2 Examples of Use of New Terminology

Section 188(1).

Part I Lists of Terms

Annotations:

Amendments (Textual)

F455

Words in Sch. 2 Pt. I omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(65)(a)

F240

Words in Sch. 2 Pt. 1 repealed (6.4.2008 for certain purposes otherwise 31.10.2008) by Consumer Credit Act 2006 (c. 14), ss. 70, 71(2), Sch. 4; S.I. 2008/831, arts. 3(1)(2), Schs. 2, 3 (as amended by S.I. 2008/2444, art. 2)

Term	Defined in section	Illustrated by example(s)
Advertisement	189(1)	2
F455. . .	F455. . .	F455. . .
Antecedent negotiations	56	1, 2, 3, 4
Cancellable agreement	67	4
Consumer credit agreement	8	5, 6, 7, 15, 19, 21
Consumer hire agreement	15	20, 24
Credit	9	16, 19, 21
Credit-broker	189(1)	2
Credit limit	10(2)	6, 7, 19, 22, 23
Creditor	189(1)	1, 2, 3, 4
Credit-sale agreement	189(1)	5
Credit-token	14	3, 14, 16
Credit-token agreement	14	3, 14, 16, 22
Debtor-creditor agreement	13	8, 16, 17, 18
Debtor-creditor-supplier agreement	12	8, 16
Fixed-sum credit	10	9, 10, 17, 23
Hire-purchase agreement	189(1)	10
Individual	189(1)	19, 24
Linked transaction	19	11
Modifying agreement	82(2)	24
Multiple agreement	18	16, 18
Negotiator	56(1)	1, 2, 3, 4
F240. . .	F240. . .	F240. . .
Pre-existing arrangements	187	8, 21
Restricted-use credit	11	10, 12, 13, 14, 16
Running-account credit	10	15, 16, 18, 23
Small agreement	17	16, 17, 22
Supplier	189(1)	3, 14
Total charge for credit	20	5, 10
Total price	189(1)	10
Unrestricted-use credit	11	8, 12, 16, 17, 18.

Part II

Annotations:

Amendments (Textual)

F456

Words in Sch. 2 Pt. II, Example 5 substituted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(65)(b)

F241

Sch. 2 Pt. II, Example 17: words omitted (1.2.2011) by virtue of The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 20(2), 99(1) (with regs. 100, 101)

F242

Sch. 2 Pt. II, Example 18: words omitted (1.2.2011) by virtue of The Consumer Credit (EU Directive) Regulations 2010 (S.I. 2010/1010), regs. 20(3), 99(1) (with regs. 100, 101)

EXAMPLES

Example 1

Facts.Correspondence passes between an employee of a moneylending company (writing on behalf of the company) and an individual about the terms on which the company would grant him a loan under a regulated agreement.

Analysis.The correspondence constitutes antecedent negotiations falling within section 56(1)(a), the moneylending company being both creditor and negotiator.

Example 2

Facts.Representations are made about goods in a poster displayed by a shopkeeper near the goods, the goods being selected by a customer who has read the poster and then sold by the shopkeeper to a finance company introduced by him (with whom he has a business relationship). The goods are disposed of by the finance company to the customer under a regulated hire-purchase agreement.

Analysis.The representations in the poster constitute antecedent negotiations falling within section 56(1)(b), the shopkeeper being the credit-broker and negotiator and the finance company being the creditor. The poster is an advertisement and the shopkeeper is the advertiser.

Example 3

Facts.Discussions take place between a shopkeeper and a customer about goods the customer wishes to buy using a credit-card issued by the D Bank under a regulated agreement.

Analysis.The discussions constitute antecedent negotiations falling within section 56(1)(c), the shopkeeper being the supplier and negotiator and the D Bank the creditor. The credit-card is a credit-token as defined in section 14(1), and the regulated agreement under which it was issued is a credit-token agreement as defined in section 14(2).

Example 4

Facts.Discussions take place and correspondence passes between a secondhand car dealer and a customer about a car, which is then sold by the dealer to the customer under a regulated conditional sale agreement. Subsequently, on a revocation of that agreement by consent, the car is resold by the dealer to a finance company introduced by him (with whom he has a business relationship), who in turn dispose of it to the same customer under a regulated hire-purchase agreement.

Analysis.The discussions and correspondence constitute antecedent negotiations in relation both to the conditional sale agreement and the hire-purchase agreement. They fall under section 56(1)(a) in relation to the conditional sale agreement, the dealer being the creditor and the negotiator. In relation to the hire-purchase agreement they fall within section 56(1)(b), the dealer continuing to be treated as the negotiator but the finance company now being the creditor. Both agreements are cancellable if the discussions took place when the individual conducting the negotiations (whether the “negotiator ” or his employee or agent) was in the presence of the debtor, unless the unexecuted agreement was signed by the debtor at trade premises (as defined in section 67(b)). If the discussions all took place by telephone however, or the unexecuted agreement was signed by the debtor on trade premises (as so defined) the agreements are not cancellable.

Example 5

Facts.E agrees to sell to F (an individual) an item of furniture in return for 24 monthly instalments of £10 payable in arrear. The property in the goods passes to F immediately.

Analysis.This is a credit-sale agreement (see definition of “credit-sale agreement ” in section 189(1)). The credit provided amounts to £240 less the amount which F456constitutes the total charge for credit (within the meaning given by section 20). (This amount is required to be deducted by section 9(4)). Accordingly the agreement falls within section 8(2) and is a consumer credit agreement.

Example 6

Facts.The G Bank grants H (an individual) an unlimited overdraft, with an increased rate of interest on so much of any debit balance as exceeds £2,000.

Analysis.Although the overdraft purports to be unlimited, the stipulation for increased interest above £2,000 brings the agreement within section 10(3)(b)(ii) and it is a consumer credit agreement.

Example 7

Facts.J is an individual who owns a small shop which usually carries a stock worth about £1,000. K makes a stocking agreement under which he undertakes to provide on short-term credit the stock needed from time to time by J without any specified limit.

Analysis.Although the agreement appears to provide unlimited credit, it is probable, having regard to the stock usually carried by J, that his indebtedness to K will not at any time rise above £5,000. Accordingly the agreement falls within section 10(3)(b)(iii) and is a consumer credit agreement.

Example 8

Facts.U, a moneylender, lends £500 to V (an individual) knowing he intends to use it to buy office equipment from W. W introduced V to U, it being his practice to introduce customers needing finance to him. Sometimes U gives W a commission for this and sometimes not. U pays the £500 direct to V.

Analysis.Although this appears to fall under section 11(1)(b), it is excluded by section 11(3) and is therefore (by section 11(2)) an unrestricted-use credit agreement. Whether it is a debtor-creditor agreement (by section 13(c)) or a debtor-creditor-supplier agreement (by section 12(c)) depends on whether the previous dealings between U and W amount to “pre-existing arrangements ”, that is whether the agreement can be taken to have been entered into “in accordance with, or in furtherance of ” arrangements previously made between U and W, as laid down in section 187(1).

Example 9

Facts.A agrees to lend B (an individual) £4,500 in nine monthly instalments of £500.

Analysis.This is a cash loan and is a form of credit (see section 9 and definition of “cash ” in section 189(1)). Accordingly it falls within section 10(1)(b) and is fixed-sum credit amounting to £4,500.

Example 10

Facts.C (in England) agrees to bail goods to D (an individual) in return for periodical payments. The agreement provides for the property in the goods to pass to D on payment of a total of £7,500 and the exercise by D of an option to purchase. The sum of £7,500 includes a down-payment of £1,000. It also includes an amount which, according to regulations made under section 20(1), constitutes a total charge for credit of £1,500.

Analysis.This is a hire-purchase agreement with a deposit of £1,000 and a total price of £7,500 (see definitions of “hire-purchase agreement ”, “deposit ” and “total price ” in section 189(1)). By section 9(3), it is taken to provide credit amounting to £7,500—(£1,500 + £1,000), which equals £5,000. Under section 8(2), the agreement is therefore a consumer credit agreement, and under sections 9(3) and 11(1) it is a restricted-use credit agreement for fixed-sum credit. A similar result would follow if the agreement by C had been a hiring agreement in Scotland.

Example 11

Facts.X (an individual) borrows £500 from Y (Finance). As a condition of the granting of the loan X is required—

(a) to execute a second mortgage on his house in favour of Y (Finance), and

(b) to take out a policy of insurance on his life with Y (Insurances).

In accordance with the loan agreement, the policy is charged to Y (Finance) as collateral security for the loan. The two companies are associates within the meaning of section 184(3).

Analysis.The second mortgage is a transaction for the provision of security and accordingly does not fall within section 19(1), but the taking out of the insurance policy is a linked transaction falling within section 19(1)(a). The charging of the policy is a separate transaction (made between different parties) for the provision of security and again is excluded from section 19(1). The only linked transaction is therefore the taking out of the insurance policy. If X had not been required by the loan agreement to take out the policy, but it had been done at the suggestion of Y (Finance) to induce them to enter into the loan agreement, it would have been a linked transaction under section 19(1)(c)(i) by virtue of section 19(2)(a).

Example 12

Facts.The N Bank agrees to lend O (an individual) £2,000 to buy a car from P. To make sure the loan is used as intended, the N Bank stipulates that the money must be paid by it direct to P.

Analysis.The agreement is a consumer credit agreement by virtue of section 8(2). Since it falls within section 11(1)(b), it is a restricted-use credit agreement, P being the supplier. If the N Bank had not stipulated for direct payment to the supplier, section 11(3) would have operated and made the agreement into one for unrestricted-use credit.

Example 13

Facts.Q, a debt-adjuster, agrees to pay off debts owed by R (an individual) to various moneylenders. For this purpose the agreement provides for the making of a loan by Q to R in return for R’s agreeing to repay the loan by instalments with interest. The loan money is not paid over to R but retained by Q and used to pay off the moneylenders.

Analysis.This is an agreement to refinance existing indebtedness of the debtor’s, and if the loan by Q does not exceed £5,000 is a restricted-use credit agreement falling within section 11(1)(c).

Example 14

Facts.On payment of £1, S issues to T (an individual) a trading check under which T can spend up to £20 at any shop which has agreed, or in future agrees, to accept S’s trading checks.

AnalysisThe trading check is a credit-token falling within section 14(1)(b). The credit-token agreement is a restricted-use credit agreement within section 11(1)(b), any shop in which the credit-token is used being the “supplier ”. The fact that further shops may be added after the issue of the credit-token is irrelevant in view of section 11(4).

Example 15

Facts.A retailer L agrees with M (an individual) to open an account in M’s name and, in return for M’s promise to pay a specified minimum sum into the account each month and to pay a monthly charge for credit, agrees to allow to be debited to the account, in respect of purchases made by M from L, such sums as will not increase the debit balance at any time beyond the credit limit, defined in the agreement as a given multiple of the specified minimum sum.

Analysis.This agreement provides credit falling within the definition of running-account credit in section 10(1)(a). Provided the credit limit is not over £5,000, the agreement falls within section 8(2) and is a consumer credit agreement for running-account credit.

Example 16

Facts.Under an unsecured agreement, A (Credit), an associate of the A Bank, issues to B (an individual) a credit-card for use in obtaining cash on credit from A (Credit), to be paid by branches of the A Bank (acting as agent of A (Credit)), or goods or cash from suppliers or banks who have agreed to honour credit-cards issued by A (Credit). The credit limit is £30.

Analysis.This is a credit-token agreement falling within section 14(1)(a) and (b). It is a regulated consumer credit agreement for running-account credit. Since the credit limit does not exceed £30, the agreement is a small agreement. So far as the agreement relates to goods it is a debtor-creditor-supplier agreement within section 12(b), since it provides restricted-use credit under section 11(1)(b). So far as it relates to cash it is a debtor-creditor agreement within section 13(c) and the credit it provides is unrestricted-use credit. This is therefore a multiple agreement. In that the whole agreement falls within several of the categories of agreement mentioned in this Act, it is, by section 18(3), to be treated as an agreement in each of those categories. So far as it is a debtor-creditor-supplier agreement providing restricted-use credit it is, by section 18(2), to be treated as a separate agreement; and similarly so far as it is a debtor-creditor agreement providing unrestricted-use credit. (See also Example 22.)

Example 17

Facts.The manager of the C Bank agrees orally with D (an individual) to open a current account in D’s name. Nothing is said about overdraft facilities. After maintaining the account in credit for some weeks, D draws a cheque in favour of E for an amount exceeding D’s credit balance by £20. E presents the cheque and the Bank pay it.

Analysis.In drawing the cheque D, by implication, requests the Bank to grant him an overdraft of £20 on its usual terms as to interest and other charges. In deciding to honour the cheque, the Bank by implication accept the offer. This constitutes a regulated small consumer credit agreement for unrestricted-use, fixed-sum credit. It is a debtor-creditor agreement, and falls within section 74(1)(b) F241. . . . (Compare Example 18.)

Example 18

Facts.F (an individual) has had a current account with the G Bank for many years. Although usually in credit, the account has been allowed by the Bank to become overdrawn from time to time. The maximum such overdraft has been is about £1,000. No explicit agreement has ever been made about overdraft facilities. Now, with a credit balance of £500, F draws a cheque for £1,300.

Analysis.It might well be held that the agreement with F (express or implied) under which the Bank operate his account includes an implied term giving him the right to overdraft facilities up to say £1,000. If so, the agreement is a regulated consumer credit agreement for unrestricted-use, running-account credit. It is a debtor-creditor agreement, and falls within section 74(1)(b)F242. . . . It is also a multiple agreement, part of which (i.e. the part not dealing with the overdraft), as referred to in section 18(1)(a), falls within a category of agreement not mentioned in this Act. (Compare Example 17.)

Example 19

Facts.H (a finance house) agrees with J (a partnership of individuals) to open an unsecured loan account in J’s name on which the debit balance is not to exceed £7,000 (having regard to payments into the account made from time to time by J). Interest is to be payable in advance on this sum, with provision for yearly adjustments. H is entitled to debit the account with interest, a “setting-up ” charge, and other charges. Before J has an opportunity to draw on the account it is initially debited with £2,250 for advance interest and other charges.

Analysis.This is a personal running-account credit agreement (see sections 8(1) and 10(1)(a), and definition of “individual ” in section 189(1)). By section 10(2) the credit limit is £7,000. By section 9(4) however the initial debit of £2,250, and any other charges later debited to the account by H, are not to be treated as credit even though time is allowed for their payment. Effect is given to this by section 10(3). Although the credit limit of £7,000 exceeds the amount (£5,000) specified in section 8(2) as the maximum for a consumer credit agreement, so that the agreement is not within section 10(3)(a), it is caught by section 10(3)(b)(i). At the beginning J can effectively draw (as credit) no more than £4,750, so the agreement is a consumer credit agreement.

Example 20

Facts.K (in England) agrees with L (an individual) to bail goods to L for a period of three years certain at £2,000 a year, payable quarterly. The agreement contains no provision for the passing of the property in the goods to L.

Analysis.This is not a hire-purchase agreement (see paragraph (b) of the definition of that term in section 189(1)), and is capable of subsisting for more than three months. Paragraphs (a) and (b) of section 15(1) are therefore satisfied, but paragraph (c) is not. The payments by L must exceed £5,000 if he conforms to the agreement. It is true that under section 101 L has a right to terminate the agreement on giving K three months’ notice expiring not earlier than eighteen months after the making of the agreement, but that section applies only where the agreement is a regulated consumer hire agreement apart from the section (see subsection (1)). So the agreement is not a consumer hire agreement, though it would be if the hire charge were say £1,500 a year, or there were a “break ” clause in it operable by either party before the hire charges exceeded £5,000. A similar result would follow if the agreement by K had been a hiring agreement in Scotland.

Example 21

Facts.The P Bank decides to issue cheque cards to its customers under a scheme whereby the bank undertakes to honour cheques of up to £30 in every case where the payee has taken the cheque in reliance on the cheque card, whether the customer has funds in his account or not. The P Bank writes to the major retailers advising them of this scheme and also publicises it by advertising. The Bank issues a cheque card to Q (an individual), who uses it to pay by cheque for goods costing £20 bought by Q from R, a major retailer. At the time, Q has £500 in his account at the P Bank.

Analysis.The agreement under which the cheque card is issued to Q is a consumer credit agreement even though at all relevant times Q has more than £30 in his account. This is because Q is free to draw out his whole balance and then use the cheque card, in which case the Bank has bound itself to honour the cheque. In other words the cheque card agreement provides Q with credit, whether he avails himself of it or not. Since the amount of the credit is not subject to any express limit, the cheque card can be used any number of times. It may be presumed however that section 10(3)(b)(iii) will apply. The agreement is an unrestricted-use debtor-creditor agreement (by section 13(c)). Although the P Bank wrote to R informing R of the P Bank’s willingness to honour any cheque taken by R in reliance on a cheque card, this does not constitute pre-existing arrangements as mentioned in section 13(c) because section 187(3) operates to prevent it. The agreement is not a credit-token agreement within section 14(1)(b) because payment by the P Bank to R, would be a payment of the cheque and not a payment for the goods.

Example 22

Facts.The facts are as in Example 16. On one occasion B uses the credit-card in a way which increases his debit balance with A (Credit) to £40. A (Credit) writes to B agreeing to allow the excess on that occasion only, but stating that it must be paid off within one month.

Analysis.In exceeding his credit limit B, by implication, requests A (Credit) to allow him a temporary excess (compare Example 17). A (Credit) is thus faced by B’s action with the choice of treating it as a breach of contract or granting his implied request. He does the latter. If he had done the former, B would be treated as taking credit to which he was not entitled (see section 14(3)) and, subject to the terms of his contract with A (Credit), would be liable to damages for breach of contract. As it is, the agreement to allow the excess varies the original credit-token agreement by adding a new term. Under section 10(2), the new term is to be disregarded in arriving at the credit limit, so that the credit-token agreement at no time ceases to be a small agreement. By section 82(2) the later agreement is deemed to revoke the original agreement and contain provisions reproducing the combined effect of the two agreements. By section 82(4), this later agreement is exempted from Part V (except section 56).

Example 23

Facts.Under an oral agreement made on 10th January, X (an individual) has an overdraft on his current account at the Y bank with a credit limit of £100. On 15th February, when his overdraft stands at £90, X draws a cheque for £25. It is the first time that X has exceeded his credit limit, and on 16th February the bank honours the cheque.

Analysis.The agreement of 10th January is a consumer credit agreement for running-account credit. The agreement of 15th-16th February varies the earlier agreement by adding a term allowing the credit limit to be exceeded merely temporarily. By section 82(2) the later agreement is deemed to revoke the earlier agreement and reproduce the combined effect of the two agreements. By section 82(4), Part V of this Act (except section 56) does not apply to the later agreement. By section 18(5), a term allowing a merely temporary excess over the credit limit is not to be treated as a separate agreement, or as providing fixed-sum credit. The whole of the £115 owed to the bank by X on 16th February is therefore running-account credit.

Example 24

Facts.On 1st March 1975 Z (in England) enters into an agreement with A (an unincorporated body of persons) to bail to A equipment consisting of two components (component P and component Q). The agreement is not a hire-purchase agreement and is for a fixed term of 3 years, so paragraphs (a) and (b) of section 15(1) are both satisfied. The rental is payable monthly at a rate of £2,400 a year, but the agreement provides that this is to be reduced to £1,200 a year for the remainder of the agreement if at any time during its currency A returns component Q to the owner Z. On 5th May 1976 A is incorporated as A Ltd., taking over A’s assets and liabilities. On 1st March 1977, A Ltd. returns component Q. On 1st January 1978, Z and A Ltd. agree to extend the earlier agreement by one year, increasing the rental for the final year by £250 to £1,450.

Analysis.When entered into on 1st March 1975, the agreement is a consumer hire agreement. A falls within the definition of “individual ” in section 189(1) and if A returns component Q before 1st May 1976 the total rental will not exceed £5,000 (see section 15(1)(c)). When this date is passed without component Q having been returned it is obvious that the total rental must now exceed £5,000. Does this mean that the agreement then ceases to be a consumer hire agreement? The answer is no, because there has been no change in the terms of the agreement, and without such a change the agreement cannot move from one category to the other. Similarly, the fact that A’s rights and duties under the agreement pass to a body corporate on 5th May 1976 does not cause the agreement to cease to be a consumer hire agreement (see the definition of “hirer ” in section 189(1)).

The effect of the modifying agreement of 1st January 1978 is governed by section 82(2), which requires it to be treated as containing provisions reproducing the combined effect of the two actual agreements, that is to say as providing that—

(a) obligations outstanding on 1st January 1978 are to be treated as outstanding under the modifying agreement;

(b) the modifying agreement applies at the old rate of hire for the months of January and February 1978, and

The total rental under the modifying agreement is £1,850. Accordingly the modifying agreement is a regulated agreement. Even if the total rental under the modifying agreement exceeded £5,000 it would still be regulated because of the provisions of section 82(3).

F325SCHEDULE 2AMEANING OF “DEBTOR” IN RELATION TO GREEN DEAL AGREEMENTS

Annotations:

Amendments (Textual)

F325

Sch. 2A inserted (E.W.S.) (28.2.2014) by The Consumer Credit Act 1974 (Green Deal) (Amendment) Order 2014 (S.I. 2014/436), arts. 1(2), 7 (with art. 1(3))

Section of this Act	References to “debtor” are to be read as references to the…
Section 19	- improver
Section 55	- improver
Section 55C	- improver - first bill payer
Section 56	- improver - first bill payer
Section 57	- improver
Section 59	- improver
Sections 60 and 61	- improver (including an improver who is not an individual)
Section 61A	- improver
Sections 62, 63, 64	- improver
Section 65	- improver - current bill payer - previous bill payer
Section 66A	- improver
Sections 67, 68, 69, 70, 71, 72, 73	- improver
Section 75A	- improver
Sections 76 and 77	- current bill payer - previous bill payer
Section 77A	- current bill payer
Section 77B	- improver - current bill payer
Section 78A	- improver - current bill payer
Section 80	- improver
Section 82	- improver - current bill payer - previous bill payer
Section 86	- current bill payer - previous bill payer
Section 86E	- current bill payer - previous bill payer
Section 86F	- current bill payer - previous bill payer
Section 87	- current bill payer - previous bill payer
Section 89	- current bill payer - previous bill payer
Section 93	- current bill payer - previous bill payer
Sections 94, 95, 95A, 95B, 96, 97, 97A	- improver - current bill payer
Section 98	- current bill payer - previous bill payer
Sections 102, 103, 105, 107, 110, 113	- improver
Sections 123, 124	- current bill payer - previous bill payer
Section 127	- improver - current bill payer - previous bill payer
Sections 128, 129, 130, 130A	- current bill payer - previous bill payer
Sections 140A, 140B, 140C	- improver - current bill payer - previous bill payer
Section 141(1), (2), (3A), (3B)	- improver - current bill payer - previous bill payer
Section 157	- improver - first bill payer
Section 173	- improver - current bill payer - previous bill payer
Section 179	- improver - first bill payer - current bill payer - previous bill payer
Section 185(1), (2), (2A), (2B), (2C), (2D), (4)	- current bill payer
Section 187A	- current bill payer - previous bill payer
Section 189(1), so far as relating to definition of “security”	- improver

SCHEDULE 3 Transitional and Commencement Provisions

Section 192(1).

Note.Except as otherwise mentioned in this Schedule, the provisions of this Act come into operation on its passing, that is on 31st July 1974.

Part II of Act Credit Agreements, Hire Agreements and Linked Transactions

Regulated agreements

1

An agreement made before F2431st April 1977is not a regulated agreement within the meaning of this Act.

2

In this Act “prospective regulated agreement ” does not include a prospective agreement which, if made as expected, would be made before F2431st April 1977.

Linked transactions

2

A transaction may be a linked transaction in relation to a regulated agreement or prospective regulated agreement even though the transaction was entered into before the day appointed for the purposes of paragraph 1.

3

Section 19(3) applies only to transactions entered into on or after F24419th May 1985.

Total charge for credit

4

Section 20 applies to consumer credit agreements whenever made.

Part III of Act Licensing of Credit and Hire Businesses

F457...

Annotations:

Amendments (Textual)

F457

Sch. 3 paras. 5-7 and cross-headings omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(66)(a)

F4575

............................................................

F457...

F4576

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F457...

F4577

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IV of Act Seeking Business

8

Part IV does not apply to any advertisement published before F2456th October 1980.

Canvassing

9

Section 49 comes into operation on F2461st October 1977.

Circulars to minors

10

Section 50 comes into operation on F2471st July 1977.

F458...

Annotations:

Amendments (Textual)

F458

Sch. 3 para. 11 and cross-heading omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(66)(b)

F45811

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part V of Act Entry into Credit or Hire Agreements

Antecedent negotiations

12

1

Section 56 applies to negotiations in relation to an actual or prospective regulated agreement where the negotiations begin after F24816th May 1977.

2

In section 56(3), “agreement ”, where it first occurs, means an agreement whenever made.

General

13

Sections 57 to 59, 61 to 65 and 67 to 73 come into operation on F24919th May 1985.

14

Section 66 comes into operation on F25019th May 1985.

Part VI of Act Matters Arising During Currency of Credit or Hire Agreements

Liability of creditor for breaches by supplier

15

Section 75 comes into operation on F2511st July 1977 but only in relation to regulated agreements made on or after that day.

Duty to give notice

16

1

Section 76 comes into operation on F25219th May 1985.

2

Section 76 applies to an agreement made before F25219th May 1985where the agreement would have been a regulated agreement if made on that day.

Duty to give information

17

1

Sections 77 to 80 come into operation on F25319th May 1985.

2

Sections 77 to 79 apply to an agreement made before F25319th May 1985where the agreement would have been a regulated agreement if made on that day.

Appropriation of payments

18

Section 81 comes into operation on F25419th May 1985.

Variation of agreements

19

Section 82 comes into operation on F2551st April 1977.

Misuse of credit facilities

20

1

Sections 83 and 84 come into operation on F25619th May 1985.

2

Subject to sub-paragraph (4), section 83 applies to an agreement made before F25619th May 1985 where the agreement would have been a regulated consumer credit agreement if made on that day.

3

Subject to sub-paragraph (4), section 84 applies to an agreement made before F25619th May 1985 where the agreement would have been a credit-token agreement if made on that day.

4

Sections 83 and 84 do not apply to losses arising before F25619th May 1985.

5

Section 84(4) shall be taken to be satisfied in relation to an agreement made before F25619th May 1985 if, within 28 days after that day, the creditor gives notice to the debtor of the name, address and telephone number of a person stated in that notice to be the person to whom notice is to be given under section 84(3).

Duty on issue of new credit-tokens

21

1

Section 85 comes into operation on F25719th May 1985.

2

Section 85 applies to an agreement made before F25719th May 1985 where the agreement would have been a regulated agreement if made on that day.

Death of debtor or hirer

22

1

Section 86 comes into operation on F25819th May 1985.

2

Section 86 applies to an agreement made before F25819th May 1985 where the agreement would have been a regulated agreement if made on that day.

Part VII of Act Default and Termination

Default notices

23

Sections 87 to 89 come into operation on F25919th May 1985.

Retaking of goods and land

24

Sections 90 and 91 come into operation on F26019th May 1985.

25

Section 92 comes into operation on F26119th May 1985.

Interest on default

26

Section 93 comes into operation on F26219th May 1985.

Early payment by debtor

27

Sections 94 to 97 come into operation on F26319th May 1985.

Termination of agreements

28

Section 98 comes into operation on F26419th May 1985.

29

Section 99 comes into operation on F26519th May 1985.

30

Section 100 comes into operation on F26619th May 1985.

31

Section 101 comes into operation on F26719th May 1985.

32

Section 102 comes into operation on F26819th May 1985.

33

Section 103 comes into operation on F26919th May 1985.

34

Section 104 comes into operation on F27019th May 1985.

Old agreements

35

Part VII (except sections 90, 91, 93 and 99 to 102 and 104) applies to an agreement made before F27119th May 1985 where the agreement would have been a regulated agreement if made on that day.

Part VIII of Act Security

General

36

Section 105 comes into operation on F27219th May 1985.

37

1

Sections 107 to 110 come into operation on F27319th May 1985.

2

Sections 107 to 110 apply to an agreement made before F27319th May 1985 where the agreement would have been a regulated agreement if made on that day.

38

1

Section 111 comes into operation on F27419th May 1985.

2

Section 111 applies to an agreement made before F27419th May 1985 where the agreement would have been a regulated agreement if made on that day.

Pledges

39

Sections 114 to 122 come into operation on F27519th May 1985 but only in respect of articles taken in pawn under a regulated consumer credit agreement.

Negotiable instruments

40

Sections 123 to 125 come into operation on F27619th May 1985.

Land mortgages

41

Section 126 comes into operation on F27719th May 1985.

Part IX of Act Judicial Control

42

Sections 137 to 140 (extortionate credit bargains) come into operation on F27816th May 1977, and apply to agreements and transactions whenever made.

43

Subject to paragraph 42, Part IX comes into operation on F27919th May 1985.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

47

Subsections (1) and (2) of section 151 do not apply to any advertisement published before 6th October 1980

Credit Reference Agencies

48

Sections 157 and 158 do not apply to a request received before 16th May 1977.

Part XII of Act Supplemental

Interpretation

49

1

In the case of an agreement—

a

which was made before F28019th May 1985, and

b

to which (by virtue of paragraph 17(2)) section 78(4) applies,

section 185(2) shall have effect as respects a notice given before that day in relation to the agreement (whether given before or after the passing of this Act) as it would have effect if section 78(4) had been in operation when the notice was given.

2

Paragraph (1) applies to an agreement made on or after F28019th May 1985 to provide credit on a current account opened before that day as it applies to an agreement made before that day.

50

In section 189, the definition of “local authority ” shall have effect in relation to matters arising before 16th May 1975 as if for the words “regional, islands or district council ” there were substituted “a county council or town council ”.

SCHEDULE 4. MINOR AND CONSEQUENTIAL AMENDMENTS

Section 192.

PART I UNITED KINGDOM

M23 Bills of Sale Act (1878) Amendment Act 1882

Annotations:

Marginal Citations

M23

1882 c.43.

X21

The following section shall be inserted after section 7

7A Default under consumer credit agreements.
1
Paragraph (1) of section 7 of this Act does not apply to a default relating to a bill of sale given by way of security for the payment of money under a regulated agreement to which section 87(1) of the Consumer Credit Act 1974 applies —
a
unless the restriction imposed by section 88(2) of that Act has ceased to apply to the bill of sale ; or
b
if, by virtue of section 89 of that Act, the default is to be treated as not having occurred.
2
Where paragraph (1) of section 7 of this Act does apply in relation to a bill of sale such as is mentioned in subsection (1) of this section, the proviso to that section shall have effect with the substitution of “county court ” for “High Court ”.

M24 Factors Act 1889

Annotations:

Marginal Citations

M24

1889 c 45.

X32

At the end of section 9 insert

For the purposes of this section—
i
the buyer under a conditional sale agreement shall be deemed not to be a person who has bought or agreed to buy goods, and
ii
“conditional sale agreement ” means an agreement for the sale of goods which is a consumer credit agreement within the meaning of the Consumer Credit Act 1974 under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled.

3

X78

In section 17(1)—

1

After the definition of “aircraft ” insert—

“conditional sale agreement ” means an agreement for the sale of goods which is a consumer credit agreement within the meaning of the Consumer Credit Act 1974 under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;

2

for the definition of “hire-purchase agreement ” substitute—

“hire-purchase agreement ” means an agreement which is a consumer credit agreement within the meaning of the Consumer Credit Act 1974, other than a conditional sale agreement, under which—
a
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
b
the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option to purchase by that person,
ii
the doing of any other specified act by any party to the agreement,
iii
the happening of any other specified event ;

M28Liability for War Damage (Miscellaneous Provisions) Act 1939

Annotations:

Marginal Citations

M28

1939 c. 102.

X89

In section 1(3), for paragraphs (a) and (b) substitute—

a
a hire-purchase agreement or a conditional sale agreement within the meaning of the Consumer Credit Act 1974 being (in either case) a consumer credit agreement as defined by that Act ; or
b
a consumer hire agreement as defined by that Act.

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F283

M29Rag Flock and Other Filing Materials Act 1951

Annotations:

Marginal Citations

M29

1951 c. 63.

F28411

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

M30Reserve and Auxiliary Forces (Protection of Civil Interest) Act 1951

Annotations:

Marginal Citations

M30

1951 c. 65.

X912

In section 4 for subsections (4), (5) and (6), substitute—

4
Where the appropriate court refuses leave under section 4(2) of this Act to take possession of goods subject to a hire-purchase agreement or a conditional sale agreement or to execute a judgment or order for delivery of such goods, or gives leave subject to restrictions and conditions, and the person to whom the goods are bailed, or, as the case may be, the buyer, before possession is taken or execution on the judgment or order completed, pays the total price, the creditor’s title to the goods shall, notwithstanding any failure to pay the total price at the time required by the agreement, vest in that person.
5
Where the creditor under a hire-purchase agreement or a conditional sale agreement has taken possession of the goods bailed or agreed to be sold under it, the appropriate court on an application under section 3(1)(c) of this Act, may, if it thinks fit, deal with the case as if the creditor were proceeding to take possession of the goods and, if it makes an order under that paragraph, may direct accordingly that the goods be restored to the person to whom they were bailed or, as the case may be, the buyer ; and if, after the creditor has taken possession of the goods, notice is given under that paragraph with respect to them, he shall not, so long as the notice is in force or any application in pursuance of the notice is undisposed of, deal with the goods in such a way as to prejudice the powers of the appropriate court under this subsection.

X1013

For section 10 substitute—

10 Property in goods subject to hire-purchase agreement.
1
Where the appropriate court refuses leave under section 8(3) of this Act to take or resume possession of goods subject to a hire-purchase agreement or a conditional sale agreement or to do diligence on any decree for the delivery of such goods, or gives leave subject to restrictions and conditions, and the person to whom they are hired, or, as the case may be, the buyer before possession is taken or resumed or diligence is done, pays the total price, the creditor’s title to the goods shall, notwithstanding any failure to pay the total price at the time required by the agreement, vest in that person.
2
Where the creditor under a hire-purchase agreement or a conditional sale agreement has taken possession of the goods hired or agreed to be sold under it, the appropriate court on an application under section 9(1)(C) of this Act may, if it thinks fit, deal with the case as if the creditor were proceeding to take possession of the goods and, if it makes an order under that paragraph, may direct accordingly that the goods be restored to the person to whom they were hired or, as the case may be, the buyer ; and if, after the creditor has taken possession of the goods, notice is given under that paragraph with respect to them, he shall not, so long as the notice is in force or any application in pursuance of the notice is undisposed of, deal with the goods in such a way as to prejudice the powers of the appropriate court under this subsection

X1114

In section 64(I)—

1

after the definition of “compulsory national service ” insert—

“conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;
“creditor ” means the person by whom goods are bailed or (in Scotland) hired under a hire-purchase agreement or, as the case may be, the seller under a conditional sale agreement, or the person to whom his rights and duties have passed by assignment or operation of the law ;
“hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—
a
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
b
the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option to purchase by that person,
ii
the doing of any other specified act by any party to the agreement,
iii
the happening of any other specified event ;

2

After the definition of “short period of training ” insert—

“total price ” means the total sum payable by the person to whom goods are bailed or hired under a hire-purchase agreement or, as the case may be, the buyer under a conditional sale agreement including any sum payable on the exercise of an option to purchase but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement

M31Clean Air Act 1956

Annotations:

Marginal Citations

M31

1956 c. 52.

F28515

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F28616

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F289

Hire Purchase Act 1964

X1422

For Part III substitute the following (which reproduces the existing provisions of that Part subject only to changes in terminology)—

Part III TITLE TO MOTOR VEHICLES ON HIRE-PURCHASE OR CONDITIONAL SALE
27 Protection of purchasers of motor vehicles.
1
This section applies where a motor vehicle has been bailed or (in Scotland) hired under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.
2
Where the disposition referred to in subsection (1) above is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement ”) that disposition shall have effect as if the creditor’s title to the vehicle has been vested in the debtor immediately before that disposition.
3
Where the person to whom the disposition referred to in subsection (1) above is made (the “original purchaser ”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition (the “first private purchaser ”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immediately before he disposed of it to the original purchaser.
4
Where, in a case within subsection (3) above—
a
the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment or hiring under a hire-purchase agreement, and
b
the person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,
the disposition referred to in paragraph (b) above (whether or not the person to whom it is made is a purchaser in good faith without notice of the relevant agreement) shall as well as the disposition referred to in paragraph (a) above, have effect as mentioned in subsection (3) above.
5
The preceding provisions of this section apply—
a
notwithstanding anything in section 21 of the Sale of Goods Act 1893 (sale of goods by a person not the owner), but
b
without prejudice to the provisions of the Factors Acts (as defined by section 62(1) of the said Act of 1893) or of any other enactment enabling the apparent owner of goods to dispose of them as if he were the true owner.
6
Nothing in this section shall exonerate the debtor from any liability (whether criminal or civil) to which he would be subject apart from this section ; and, in a case where the debtor disposes of the motor vehicle to a trade or finance purchaser, nothing in this section shall exonerate—
a
that trade or finance purchaser, or
b
any other trade or finance purchaser who becomes a purchaser of the vehicle and is not a person claiming under the first private purchaser,
from any liability (whether criminal or civil) to which he would be subject apart from this section.
28 Presumptions relating to dealing with motor vehicles.
1
Where in any proceedings (whether criminal or civil) relating to a motor vehicle it is proved—
a
that the vehicle was bailed or (in Scotland) hired under a hire-purchase agreement, or was agreed to be sold under a conditional sale agreement and
b
that a person (whether a party to the proceedings or not) became a private purchaser of the vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement ”),
this section shall have effect for the purposes of the operation of section 27 of this Act in relation to those proceedings.
2
lt shall be presumed for those purposes, unless the contrary is proved, that the disposition of the vehicle to the person referred to in subsection (1)(b) above (the “relevant purchaser ”) was made by the debtor.
3
If it is proved that that disposition was not made by the debtor, then it shall be presumed for those purposes, unless the contrary is proved—
a
that the debtor disposed of the vehicle to a private purchaser purchasing in good faith without notice of the relevant agreement, and
b
that the relevant purchaser is or was a person claiming under the person to whom the debtor so disposed of the vehicle.
4
If it is proved that the disposition of the vehicle to the relevant purchaser was not made by the debtor, and that the person to whom the debtor disposed of the vehicle (the “original purchaser ”) was a trade or finance purchaser, then it shall be presumed for those purposes, unless the contrary is proved,
a
that the person who, after the disposition of the vehicle to the original purchaser, first became a private purchaser of the vehicle was a purchaser in good faith without notice of the relevant agreement, and
b
that the relevant purchaser is or was a person claiming under the original purchaser.
5
Without prejudice to any other method of proof, where in any proceedings a party thereto admits a fact, that fact shall, for the purposes of this section, be taken as against him to be proved in relation to those proceedings.
29
1
In this Part of this Act—
“conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;
“creditor ” means the person by whom goods are bailed or (in Scotland) hired under a hire-purchase agreement or as the case may be, the seller under a conditional sale agreement, or the person to whom his rights and duties have passed by assignment or operation of law ;
“disposition ” means any sale or contract of sale (including a conditional sale agreement), any bailment or (in Scotland) hiring under a hire-purchase agreement and any transfer of the property in goods in pursuance of a provision, in that behalf contained in a hire-purchase agreement, and includes any transaction purporting to be a disposition (as so defined), and “dispose of ” shall be construed accordingly;
“hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—
a
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
b
the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option to purchase by that person,
ii
the doing of any other specified act by any party to the agreement,
iii
the happening of any other specified events ; and
“motor vehicle ” means a mechanically propelled vehicle intended or adapted for use on roads to which the public has access.
2
In this Part of this Act “trade or finance purchaser ” means a purchaser who, at the time of the disposition made to him, carries on a business which consists, wholly or partly,—
a
of purchasing motor vehicles for the purpose of offering or exposing them for sale, or
b
of providing finance by purchasing motor vehicles for the purpose of bailing or (in Scotland) hiring them under hire-purchase agreements or agreeing to sell them under conditional sale agreements,
and “private purchaser ” means a purchaser who, at the time of the disposition made to him, does not carry on any such business.
3
For the purposes of this Part of this Act a person becomes a purchaser of a motor vehicle if, and at the time when, a disposition of the vehicle is made to him; and a person shall be taken to be a purchaser of a motor vehicle without notice of a hire-purchase agreement or conditional sale agreement if, at the time of the disposition made to him , he has no actual notice that the vehicle is or was the subject of any such agreement.
4
In this Part of this Act the “debtor ” in relation to a motor vehicle which has been bailed or hired under a hire-purchase agreement, or, as the case may be, agreed to be sold under a conditional sale agreement, means the person who at the material time (whether the agreement has before that time been terminated or not) either—
a
is the person to whom the vehicle is bailed or hired under that agreement, or
b
is, in relation to the agreement, the buyer,
including a person who at that time is, by virtue of section 130(4) of the Consumer Credit Act 1974 treated as a bailee or (in Scotland) a custodier of the vehicle.
5
In this Part of this Act any reference to the title of the creditor to a motor vehicle which has been bailed or (in Scotland) hired under a hire-purchase agreement, or agreed to be sold under a conditional sale agreement, and is disposed of by the debtor, is a reference to such title (if any) to the vehicle as, immediately before that disposition, was vested in the person who then was the creditor in relation to the agreement,

M35Emergency Laws (Re-enactment and Repeals) Act 1964

Annotations:

Marginal Citations

M35

1964 c. 60

X1523

In section 1—

1

In subsection (1) for “or credit-sale agreements, or under agreements for letting on hire ” substitute “conditional sale agreements, credit-sale agreements or hire agreements ”

2

For subsection (2) substitute—

2
In this section —
“conditional sale agreement ” means an agreement for the sale of any article under which the purchase price, or part of it is payable by instalments, and the property in the article is to remain in the seller (notwithstanding that the buyer is to be in possession of the article) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;
“credit-sale agreement ” means an agreement for the sale of any article, under which the purchase price or part of it is payable by instalments, but which is not a conditional sale agreement ;
“hire-purchase agreement ” means an agreement, other than a conditional sale agreement under which—
a
an article is bailed or (in Scotland) hired in return for periodical payments by the person to whom it is bailed or hired, and
b
the property in the article will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option by that person
ii
the doing of any other specified act by any party to the agreement ;
iii
the happening of any other specified event; and
“hire agreement ” means an agreement for the bailment or (in Scotland) the hiring of an article which is not a hire-purchase agreement.

M36Trading Stamps Act 1964

Annotations:

Marginal Citations

M36

1964 c. 71.

X1624

~~F290In section 2, for subsection (1) substitute—~~

1
No person shall after the coming into force of this section issue any trading stamp, or cause any trading stamp to be issued, or deliver any trading stamp to any person in connection with the sale of any goods, the bailment or (in Scotland) the hiring of any goods under a hire-purchase agreement or the performance of any services, unless such trading stamp bears on its face in clear and legible characters a value expressed in or by reference to current coin of the realm.

X1725

~~F291In section 3, for subsection (4) substitute—~~

4
~~In this section “redeemable trading stamps~~ ~~” means trading stamps delivered after the coming into force of this section in accordance with a trading stamp scheme on or in connection with either—~~
a
~~the purchase of any goods,~~
b
~~the bailment or (in Scotland) the hiring of any goods under a hire-purchase, agreement, or~~
c
~~the obtaining of any services for money,~~
~~and “the holder ”, in relation to such a trading stamp, means the person to whom it was so delivered or any person who holds it without notice of any defect in title.~~

X1826

~~F292In section 10(1)—~~

1

~~after the definition of “cash value ” insert—~~

“~~conditional sale agreement~~ ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;

2

~~after the definition of “goods ” insert—~~

“~~hire-purchase agreement~~ ~~” means an agreement, other than a conditional sale agreement, under which—~~
a
~~goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and~~
b
~~the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—~~
i
~~the exercise of an option to purchase by that person,~~
ii
~~the doing of any other specified act by any party to the agreement,~~
~~iii~~
~~the happening of any other specified event;~~

3

~~For the definition of “trading stamp ” substitute—~~

“~~trading stamp~~ ~~” means a stamp which is, or is intended to be, delivered to any person on or in connection with either—~~
i
~~the purchase of any goods, or~~
ii
~~the bailment or (in Scotland) the hiring of any goods under a hire-purchase agreement,~~
(other than the purchase of a newspaper or other periodical of which the stamp forms part or in which it is contained) and is, or is intended to be, redeemable (whether singly or together with other such stamps) by that or some other person:
~~Provided that a stamp shall not be deemed to be a trading stamp if—~~
a
it is delivered or is intended to be delivered to a person (in this definition called “the purchaser ”) on or in connection with the purchase of any goods by the purchaser, or the bailment or (in Scotland) the hiring to him of any goods, and
b
~~it is intended to be, and is not, redeemable from any person other than—~~
i
~~the person (in this definition called “the seller ”) from whom the purchaser purchased those goods, or who bailed or hired those goods to him, or~~
ii
~~any person from whom the seller (whether directly or indirectly) acquired those goods, and~~
c
in the case where a business is carried on by six or more retail establishments, the stamp is one of a kind obtainable at no more than six of those retail establishments, and not obtainable by the Public elsewhere, and the arrangements under which it is redeemable are entirely separate from arrangements under which any other stamps, whether trading stamps or not, are redeemable,
~~and references in this definition to the purchase of goods include references to the obtaining of services for money;~~

M37Housing (Scotland) Act 1966

Annotations:

Marginal Citations

M37

1966 c. 49.

F29327

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

M38Trade Descriptions Act 1968

Annotations:

Marginal Citations

M38

1968 c. 29.

28

F294. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F295

M39Administration of Justice Act 1970

Annotations:

Marginal Citations

M39

1970 c. 31.

X1930

After section 38 insert the following new section—

38A
This Part of this Act shall not apply to a mortgage securing an agreement which is a regulated agreement within the meaning of the Consumer Credit Act 1974.

X2031

In section 54(6)(c) after “36 ” insert “38A ”.

M40Vehicles (Excise) Act 1971

Annotations:

Marginal Citations

M40

1971 c. 10.

F29632

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F297

M41Counter-Inflation Act 1973

Annotations:

Marginal Citations

M41

1973 c. 9.

X2134

In section 21(5)—

a

for “total purchase price or hire-purchase price ” substitute “total price ”; and

b

for the words from “This subsection ” onwards substitute—

In this subsection—
“conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled, and
“hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—
a
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
b
the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option to purchase by that person,
ii
the doing of any other specified act by any party to the agreement,
iii
the happening of any other specified event ; and “total price ” means the total sum payable by the person to whom goods are bailed or hired under a hire-purchase agreement or, as the case may be, the buyer under a conditional sale agreement including any sum payable on the exercise of an option to purchase but excluding any sum payable as a penalty or as compensation or damages for a breach of the agreement.

M42Supply of Goods (Implied Terms) Act 1973

Annotations:

Marginal Citations

M42

1973 c. 13.

X2235

For sections 8 to 12 substitute the following sections (which reproduce the existing provisions of those sections subject only to changes in terminology)—

8 Implied terms as to title.
1
In every hire-purchase agreement, other than one to which subsection (2) below applies, there is—
a
an implied condition on the part of the creditor that he will have a right to sell the goods at the time when the property is to pass ; and
b
an implied warranty that—
i
the goods are free, and will remain free until the time when the property is to pass, from any charge or encumbrance not disclosed or known to the person to whom the goods are bailed or (in Scotland) hired before the agreement is made, and
ii
that person will enjoy quiet possession of the goods except so far as it may be disturbed by any person entitled to the benefit of any charge or encumbrance so disclosed or known.
2
In a hire-purchase agreement, in the case of which there appears from the agreement or is to be inferred from the circumstances of the agreement an intention that the creditor should transfer only such title as he or a third person may have, there is—
a
an implied warranty that all charges or encumbrances known to the creditor and not known to the person to whom the goods are bailed or hired have been disclosed to that person before the agreement is made ; and
b
an implied warranty that neither—
i
the creditor; nor
ii
in a case where the parties to the agreement intend that any title which may be transferred shall be only such title as a third person may have, that person ; nor
iii
anyone claiming through or under the creditor or that third person otherwise than under a charge or encumbrance disclosed or known to the person to whom the goods are bailed or hired, before the agreement is made ;
will disturb, the quiet possession of the person to whom the goods are bailed or hired.
9 Bailing or hiring by description.
1
Where under a hire-purchase agreement goods are bailed or (in Scotland) hired by description, there is an implied condition that the goods will correspond with the description, and if under the agreement the goods are bailed or hired by reference to a sample as well as a description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.
2
Goods shall not be prevented from being bailed of hired by description by reason only that, being exposed for sale, bailment or hire, they are selected by the person to whom they are bailed or hired.
10 Implied undertakings as to quality or fitness.
1
Except as provided by this section and section 11 below and subject to the provisions of any other enactment, including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly, there is no implied condition or warranty as to the quality or fitness for any particular purpose of goods bailed or (in Scotland) hired under a hire-purchase agreement.
2
Where the creditor bails or hires goods under a hire-purchase agreement in the course of a business, there is an implied condition that the goods are of merchantable quality, except that there is no such condition—
a
as regards defects specifically drawn to the attention of the person to whom the goods are bailed or hired before the agreement is made; or
b
if that person examines the goods before the agreement is made, as regards defects which that examination ought to reveal.
3
Where the creditor bails or hires goods under a hire-purchase agreement in the course of a business and the person to whom the goods are bailed or hired, expressly or by implication, makes known—
a
to the creditor in the course of negotiations conducted by the creditor in relation to the making of the hire-purchase agreement, or
b
to a credit-broker in the course of negotiations conducted by that broker in relation to goods sold by him to the creditor before forming the subject matter of the hire-purchase agreement,
any particular purpose for which the goods are being bailed or hired, there is an implied condition that the goods supplied under the agreement are reasonably fit for that purpose, whether or not that is a purpose for which such goods are commonly supplied, except where the circumstances show that the person to whom the goods are bailed or hired does not rely, or that it is unreasonable for him to rely, on the skill or judgement of the creditor or credit-broker.
4
An implied condition or warranty as to quality or fitness for a particular purpose may be annexed to a hire-purchase agreement by usage.
5
The preceding provisions of this section apply to a hire-purchase agreement made by a person who in the course of a business is acting as agent for the creditor as they apply to an agreement made by the creditor in the course of a business, except where the creditor is not bailing or hiring in the course of a business and either the person to whom the goods are bailed or hired knows that fact or reasonable steps are taken to bring it to the notice of that person before the agreement is made.
6
In subsection (3) above and this subsection—
a
“credit-broker ” means a person acting in the course of a business of credit brokerage ;
b
“credit brokerage ” means the effecting of introductions of individuals desiring to obtain credit—
i
to persons carrying on any business so far as it relates to the provision of credit, or
ii
to other persons engaged in credit brokerage.
11 Samples.
Where under a hire-purchase agreement goods are bailed or (in Scotland) hired by reference to a sample, there is an implied condition—
a
that the bulk will correspond with the sample in quality ; and
b
that the person to whom the goods are bailed or hired will have a reasonable opportunity of comparing the bulk with the sample; and
c
that the goods will be free from any defect, rendering them numerchantable, which would not be apparent on reasonable examination of the sample.
12 Exclusion of implied terms and conditions.
1
An express condition or warranty does not negative a condition or warranty implied by this Act this unless inconsistent with it.
2
A term of a hire-purchase agreement or any other agreement exempting from all or any of the provisions of section 8 above shall be void.
3
A term of a hire-purchase agreement or any other agreement exempting from all or any of the provisions of sections 9, 10 or 11 above shall be void in the case of a consumer agreement and shall, in any other case, not be enforceable to the extent that it is shown that it would not be fair or reasonable to allow reliance on the term.
4
In determining for the purpose of subsection (3) above whether or not reliance on any such term would be fair or reasonable regard shall be had to all the circumstances of the case and in particular to the following matters—
a
the strength of the bargaining positions of the creditor and the person to whom the goods are bailed or hired relative to each other, taking into account, among other things, the availability of suitable alternative products and sources of supply;
b
whether that person received an inducement to agree to the term or in accepting it had an opportunity of acquiring the goods or suitable alternatives without it from any source of supply;
c
whether that person knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties);
d
where the term exempts from all or any of the provisions of sections 9, 10 or 11 above if some condition is not complied with , whether it was reasonable at the time of the agreement to expect that compliance with that condition would be practicable ;
e
whether the goods were manufactured, processed or adapted to the special order of that person.
5
Subsection (4) above shall not prevent the court from holding, in accordance with any rule of law, that a term which purports to exclude any or restrict any of the provisions of sections 9, 10 and 11 above is not a term of the hire-purchase agreement.
6
In this section “consumer agreement ” means a hire-purchase agreement where the creditor makes the agreement in the course of a business and the goods to which the agreement relates—
a
are of a type ordinarily supllied for private use or consumption ; and
b
are bailed or (in Scotland) hired to a person who does not bail or hire them or hold himself out as bailing or hiring them in the course of a business.
7
The onus of proving that a hire-purchase agreement is to be treated for the purposes of this section as not being a consumer agreement shall lie on the party so contending.
8
Any reference in this section to a term exempting from all or any of the provisions of any section of this Act is a reference to a term which purports to exclude or restrict, or has the effect of excluding or restricting, the operation of all or any of the provisions of that section, or the exercise of a right conferredby any provision of that section, or any liability of the owner for breach of a condition or warranty implied by any provision of that section.
9
It is hereby declared that any reference in this section to a term of an agreement includes a reference to a term which although not contained in an agreement is incorporated in the agreement another term of the agreement.

X2336

For sections 14 and 15 substitute the following sections (which reproduce the existing provisions of those sections subject only to changes in terminology)—

14 Special provisions as to conditional sale agreements.
1
Section 11(1)(c) of the principal Act (whereby provisions in certain circumstances a breach of a condition in a contract of sale is treated only as a breach of warranty shall not apply to conditional sale agreements which are agreements for consumer sales.
2
In England and Wales and Northern Ireland a breach of a condition (whether express or implied) to be fulfilled by the seller under any such agreement shall be treated as a breach of warranty, and not as grounds for rejecting the goods and treating the agreement as repudiated, if (but only if) it would have fallen to be so treated had the condition been contained or implied in a corresponding hire-purchase agreement as a condition to be fulfilled by the creditor.
15 Supplementary.
1
In sections 8 to 14 above and this section—
“business ” includes a profession and the activities of any government department (including a Northern Ireland department), local authority or statutory undertaker;
“buyer ” and “seller ” includes a person to whom rights and duties under a conditional sale agreement have passed by assignment or operation of law ;
“condition ” and “warranty ”, in relation to Scotland, mean stipulation, and any stipulation referred to in sections 8(1)(a), 9, 10 and 11 above shall be deemed to be material to the agreement.
“conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;
“consumer sale ” has the same meaning as in section 55 of the principal Act, as amended by section 4 above ;
“creditor ” means the person by whom the goods are bailed or (in Scotland) hired under a hire-purchase agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law ; and
“hire-purchase agreement ” means an agreement, other than conditional sale agreement, under which—
a
goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and
b
the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option to purchase by that person,
ii
the doing of any other specified act by any party to the agreement,
iii
the happening of any other specified event.
2
Goods of any kind are of merchantable quality within the meaning of section 10(2) above if they are as fit for the purpose or purposes for which goods of that kind are commonly bought as it is reasonable to expect having regard to any description applied to them, the price (if relevant) and all the other relevant circumstances ; and in section 11 above “unmerchantable ” shall be construed accordingly.
3
In section 14(2) above “corresponding hire-purchase agreement ” means, in relation to a conditional sale agreement, a hire-purchase agreement relating to the same goods as the conditional sale agreement and made between the same parties and at the same time and in the same circumstances and, as nearly as may be, in the same terms as the conditional sale agreement.
4
Nothing in sections 8 to 13 above shall prejudice the operation of any other enactment including any enactment of the Parliament of Northern Ireland or the Northern Ireland Assembly or any rule of law whereby any condition or warranty, other than one relating to quality or fitness, is to be implied in any hire-purchase agreement.

M43Fair Trading Act 1973

Annotations:

Marginal Citations

M43

1973 c. 41.

37

F298. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II NORTHERN IRELAND

M44Irish Bankrupt and Insolvent Act 1857

Annotations:

Marginal Citations

M44

1857 c. 60.

F29938

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

M45Bills of Sale (Ireland) Act (1879) Amendment Act 1883

Annotations:

Marginal Citations

M45

1883 c. 7.

X2439

The following section shall be inserted after section 7:—

7A Defaults under consumer credit agreements.
1
Paragraph (1) of section 7 of this Act does not apply to a default relating to a bill of sale given by way of security for the payment of money under a regulated agreement to which section 87(1) of the Consumer Credit Act 1974 applies:—
a
unless the restriction imposed by section 88(2) of that Act has ceased to apply to the bill of sale; or
b
if, by virtue of section 89 of that Act, the default is to be treated as not having occurred.
2
Where paragraph (1) of section 7 of this Act does apply in relation to a bill of sale such as is mentioned in subsection (1) of this section, the proviso to that section shall have effect with the insertion after “High Court ” of the words “or county court ”.

M46Liability for War Damage (Miscellaneous Provisions) Act (Northern Ireland) 1939

Annotations:

Marginal Citations

M46

1939 c. 36 (N.I.)

X2540

In section 1(3), for paragraph (a) and (b) substitute—

a
a hire-purchase agreement or a conditional sale agreement within the meaning of the Consumer Credit Act 1974 being a consumer credit agreement as defined by that Act ; or
b
a consumer hire agreement within the meaning of that Act.

41

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F300

M47Trading Stamps Act (Northern Ireland) 1965

Annotations:

Marginal Citations

M47

1965 c. 6 (N.I.).

X2643

~~F301In section 2, for subsection (1) substitute—~~

1
No person shall after the coming into force of this section issue any trading stamp, or cause any trading stamp to be issued, or deliver any trading stamp to any person in connection with the sale of any goods, the bailment of any goods under a hire-purchase agreement or the performance of any services, unless such trading stamp bears on its face in clear and legible characters a value expressed in or by reference to current coin of the realm

X2744

~~F302In section 3, for subsection (4) substitute—~~

4
~~In this section “redeemable trading stamps~~ ~~” means trading stamps delivered after the coming into force of this section in accordance with a trading stamp scheme on or in connection with either—~~
a
~~the purchase of any goods,~~
b
~~the bailment of any goods under a hire-purchase agreement, or~~
c
~~the obtaining of any services for money,~~
~~and “the holder ” in relation to such a trading stamp, means the person to whom it was so delivered or any person who holds it without notice of any defect in title.~~

X2845

~~F303In section 9—~~

1

~~after the definition of “cash value ” insert—~~

“~~conditional sale agreement~~ ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;

2

~~after the definition of “goods ” insert—~~

“~~hire-purchase agreement~~ ~~” means an agreement, other than a conditional sale agreement, under which—~~
a
~~goods are bailed in retum for periodical payments by the person to whom they are bailed, and~~
b
~~the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—~~
i
~~the exercise of an option to purchase by that person,~~
ii
~~the doing of any other specified act by any party to the agreement,~~
~~iii~~
~~the happening of any other specified event:~~

3

~~For the definition of “trading stamp ” substitute—~~

“~~trading stamp~~ ~~” means a stamp which is, or is intended to be, delivered to any person on or in connection with either—~~
i
~~the purchase of any goods, or~~
ii
~~the bailment of any goods under a hire-purchase agreement,~~
(other than the purchase of a newspaper or other periodical of which the stamp forms part or in which it is contained) and is, or is intended to be, redeemable (whether singly or together with other such stamps) by that or some other person:
~~Provided that a stamp shall not be deemed to be a trading stamp if—~~
a
it is delivered or is intended to be delivered to a person (in this definition called “the purchaser ”) on or in connection with the purchase of any goods by the purchaser, or the bailment to him of any goods, and
b
~~it is intended to be, and is not, redeemable from any person other than—~~
i
~~the person (in this definition called “the selle ”) from whom the purchaser purchased those goods or who bailed those goods to him, or~~
ii
~~any person from whom the seller (whether directly or indirectly) acquired those goods, and~~
c
in the case where a business is carried on by six or more retail establishments, the stamp is one of a kind obtainable at no more than six of those retail establishments, and not obtainable by the public elsewhere, and the arrangements under which it is redeemable are entirely separate from arrangements under which any other stamps, whether trading stamps or not, are redeemable, and references in this definition to the purchase of goods include references to the obtaining of services for money.

46

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F304

48

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F305

M48 Hire-Purchase Act (Northern Ireland) 1966

Annotations:

Marginal Citations

M48

1966 c. 42(N.I.)

X2949

For Part VI substitute the following (which reproduces the existing provisions of that Part subject only to changes in terminology)—

Part VI TITLE TO MOTOR VEHICLES ON HIRE-PURCHASE OR CONDITIONAL SALE
62 Protection of purchasers of motor vehicles.
1
This section applies where a motor vehicle has, been bailed under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.
2
Where the disposition referred to in subsection (1) is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement ”) that disposition shall have effect as if the creditor’s title to the vehicle had been vested in the debtor immediately before that disposition.
3
Where the person to whom the disposition referred to in subsection (1) is made (the “original purchaser ”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition ( “the first private purchaser ”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immeffiatily before he disposed of it to the original purchaser.
4
Where, in a case within subsection (3)—
a
the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment under a hire-purchase agreement, and
b
the person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,
the, disposition referred to in paragraph (b) (whether or not the person to whom it is made is a purchaser in good faith without notice of the relevant agreement) shall, as well as the disposition referred to in paragraph (a), have effect as mentioned in subsection (3).
5
The preceding provisions of this section apply—
a
notwithstanding anything in section 21 of the Sale of Goods Act 1893 (sale of goods by a person not the owner), but
b
without prejudice to the provisions of the Factors Act (as defined by section 62(1) of the said Act of 1893) or of any other enactment enabling the apparent owner of goods to dispose of them as if he were the true owner.
6
Nothing in this section shall exonerate the debtor from any liability (whether criminal or civil) to which he would be subject apart from this section ; and, in a case where the debtor disposes of the motor vehicle to a trade or finance purchaser, nothing in this section shall exonerate—
a
that trade or finance purchaser, or
b
any other trade or finance purchaser who becomes a purchaser of the vehicle and is not a person claiming under the first private purchaser,
from any liability (whether criminal or civil) to which he would be subject apart from this section.
63 Presumptions relating to dealings with motor vehicles.
1
Where in any proceedings (whether criminal or civil) relating to a motor vehicle it is proved—
a
that the vehicle was bailed under a hire-purchase agreement, or was agreed to be sold under a conditional sale agreement, and
b
that a person (whether a party to the proceedings or not) became a private purchaser of the vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement ”),
this section shall have effect for the purpose of the operation of section 62 of this Act in relation to those proceedings.
2
It shall be presumed for those purposes, unless the contrary is proved, that the disposition of the vehicle to the person referred to in subsection (1)(b) (the “relevant purchaser ”) was made by the debtor.
3
If it is proved that that disposition was not made by the debtor, then it shall be presumed for those purposes, unless the contrary is proved—
a
that the debtor disposed of the vehicle to a private purchaser purchasing in good faith without notice of the relevant agreement and
b
that the relevant purchaser is or was a person claiming under the person to whom the debtor so disposed of the vehicle.
4
If it is proved that the disposition of the vehicle to the relevant purchaser was not made by the debtor, and that the person to whom the debtor disposed of the vehicle (the “original purchaser ”) was a trade or finance purchaser, then it shall be presumed for those purposes, unless the contrary is proved,—
a
that the person who, after the disposition of the vehicle to the original purchaser, first became a private purchaser of the vehicle was a purchaser in good faith without notice of the relevant agreement, and
b
that the relevant purchaser is or was a person claiming under the original purchaser.
5
Without prejudice to any other method of proof, where in any proceedings a party thereto admits a fact, that fact shall, for the purposes of this section, be taken as against him to be proved in relation to those proceedings.
64 Interpretation of Part VI and application to the Crown.
1
In this Part—
“conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;
“creditor ” means the person by whom goods are bailed under a hire-purchase agreement or, as the case may be, the seller under a conditional sale agreement, or the person to whom his rights and duties have passed by assignment or operation of law ;
“disposition ” means any sale or contract of sale (including a conditional sale agreement), any bailment under a hire-purchase agreement and any transfer of the property in goods in pursuance of a provision in that behalf contained in a hire-purchase agreement, and includes any transaction purporting to be a disposition (as so defined), and “dispose of ” shall be construed accordingly;
“hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—
a
goods are bailed in return for periodical payments by the person to whom they are bailed, and
b
the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—
i
the exercise of an option to purchase by that person,
ii
the doing of any other specified act by any party to the agreement,
iii
the happening of any other specified event, and “motor vehicle ” means a mechanically propelled vehicle intended or adapted for use on roads to which the public has access.
2
In this Part “trade or finance purchaser ” means a purchaser who, at the time of the disposition made to him, carries on a business which consists, wholly or partly,—
a
of purchasing motor vehicles for the purpose of offering or exposing them for sale, or
b
of providing finance by purchasing motor vehicles for the purpose of bailing them under hire-purchase agreements or agreeing to sell them under conditional sale agreements,
and “private purchaser ” means a purchaser who, at the time of the disposition made to him, does not carry on any such business.
3
For the purposes of this Part a person becomes a purchaser of a motor vehicle if, and at the time when, a disposition of the vehicle is made to him ; and a person shall be taken to be a purchaser of a motor vehicle without notice of a hire-purchase agreement or conditional sale agreement if, at the time of the disposition made to him, he has no actual notice that the vehicle is or was the subject of any such agreement.
4
In this Part the “debtor ”, in relation to a motor vehicle which has been bailed under a hire-purchase agreement or, as the case may be, agreed to be sold under a conditional sale agreement, means the person who at the material time (whether the agreement has before that time been terminated or not) either—
a
is the person to whom the vehicle is bailed under that agreement or
b
is, in relation to the agreement, the buyer, including a person who at that time is, by virtue of section 130(4) of the Consumer Credit Act 1974 treated as a bailee of the vehicle.
5
In this Part any reference to the title of the creditor to a motor vehicle which has been bailed under a hire-purchase agreement, or agreed to be sold under a conditional sale agreement, and is disposed of by the debtor, is a reference to such title (if any) to the vehicle as, immediately before that disposition, was vested in the person who then was the creditor in relation to the agreement.
6
This Part binds the Crown to the full extent authorised or permitted by the constitutional laws of Northern Ireland.

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