The Consumer Credit (Exempt Agreements) (Amendment) Order 2006

Statutory Instruments

2006 No. 1273

CONSUMER CREDIT

The Consumer Credit (Exempt Agreements) (Amendment) Order 2006

Made

9th May 2006

Laid before Parliament

10th May 2006

Coming into force

1st June 2006

The Secretary of State makes the following Order in exercise of the powers conferred on him by sections 16(5) and 182(2) and (4) of the Consumer Credit Act 1974(1):

Citation, commencement and interpretation

1.  This Order may be cited as the Consumer Credit (Exempt Agreements) (Amendment) Order 2006 and shall come into force on 1^st June 2006.

Amendment of the Consumer Credit (Exempt Agreements) Order 1989

2.  The Consumer Credit (Exempt Agreements) Order 1989(2) shall be amended as follows.

3.  In article 4(1)(a) (Exemption of certain consumer credit agreements by reference to the rate of the total charge for credit) for the words “12.7 per cent” substitute “26.9 per cent”.

Ian McCartney

Minister for Trade, Investment and Foreign Affairs

Department of Trade and Industry

9th May 2006

Explanatory Note

(This note is not part of the Order)

This Order amends the Consumer Credit (Exempt Agreements) Order 1989 to provide that the Consumer Credit Act shall not regulate debtor-creditor agreements where the creditor is a credit union and the rate of the total charge for credit does not exceed 26.9 per cent.

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

(1)

1974 c. 39; section 182(2) was amended by section 58(3) of the Consumer Credit Act 2006 (c. 14).

(2)

S.I. 1989/869, amended by S.I. 1999/1956; there are other amending instruments but none is relevant.