Part II Credit Agreements, Hire Agreements and Linked Transactions
16AF1Exemption relating to high net worth debtors and hirers
1
The Secretary of State may by order provide that this Act shall not regulate a consumer credit agreement or a consumer hire agreement where—
a
the debtor or hirer is a natural person;
b
the agreement includes a declaration made by him to the effect that he agrees to forgo the protection and remedies that would be available to him under this Act if the agreement were a regulated agreement;
c
a statement of high net worth has been made in relation to him; and
d
that statement is current in relation to the agreement and a copy of it was provided to the creditor or owner before the agreement was made.
2
For the purposes of this section a statement of high net worth is a statement to the effect that, in the opinion of the person making it, the natural person in relation to whom it is made—
a
received during the previous financial year income of a specified description totalling an amount of not less than the specified amount; or
b
had throughout that year net assets of a specified description with a total value of not less than the specified value.
3
Such a statement—
a
may not be made by the person in relation to whom it is made;
b
must be made by a person of a specified description; and
c
is current in relation to an agreement if it was made during the period of one year ending with the day on which the agreement is made.
4
An order under this section may make provision about—
a
how amounts of income and values of net assets are to be determined for the purposes of subsection (2)(a) and (b);
b
the form, content and signing of—
i
statements of high net worth;
ii
declarations for the purposes of subsection (1)(b).
5
Where an agreement has two or more debtors or hirers, for the purposes of paragraph (c) of subsection (1) a separate statement of high net worth must have been made in relation to each of them; and paragraph (d) of that subsection shall have effect accordingly.
6
In this section—
‘previous financial year’ means, in relation to a statement of high net worth, the financial year immediately preceding the financial year during which the statement is made;
‘specified’ means specified in an order under this section.
7
In subsection (6) ‘financial year’ means a period of one year ending with 31st March.
8
Nothing in this section affects the application of sections 140A to 140C.