|
| | |
|
| |
|
| Tuesday 25th January 2005 |
|
| |
| |
| |
| [First and second Sittings] —————————— |
|
| |
| | |
| | |
| | (1) | during proceedings on the Consumer Credit Bill, in addition to its first |
|
| | meeting at 9.25 a.m. on Tuesday 25th January, the Standing Committee shall |
|
| | |
| | (a) | 2.30 p.m. on Tuesday 25th January; and |
|
| | (b) | 9.25 a.m. and 2.30 p.m. on Thursday 27th January, Tuesday 1st |
|
| | February and Thursday 3rd February; |
|
| | (2) | the Bill be considered in the following order, namely, Clauses 1 to 55, |
|
| | Schedule 1, Clauses 56 to 59, Schedule 2, Clauses 60 to 68, Schedule 3, |
|
| | Clause 69, Schedule 4, Clause 70, new Clauses, new Schedules and |
|
| | remaining proceedings on the Bill; |
|
| | (3) | proceedings on the Bill shall (so far as not previously concluded) be brought |
|
| | to a conclusion at 6.55 p.m. on Thursday 3rd February. |
|
| |
| | Clauses 1 and 2 Agreed to. |
|
| |
| |
| |
| |
| | |
| Clause 3, page 2, line 27, after ‘description’, insert ‘, who shall not be connected |
|
| through pecuniary interest to the lender’. |
|
| |
| |
| |
| |
| | |
| Clause 3, page 2, line 30, at end insert— |
|
|
|
| |
| |
|
| | ‘(d) | must be signed by the debtor in the presence of an independent witness, |
|
| | who shall not be connected through pecuniary interest to the lender and |
|
| | shall not be the person who has made the statement referred to in |
|
| | |
| | |
| |
| |
| |
| |
| |
| | |
| Page 3, line 2, leave out Clause 4. |
|
| | |
| |
| |
| |
| Mr Ian Liddell-Graingerer |
|
| |
| | |
| Clause 5, page 3, line 37, leave out ‘or 16B’. |
|
| |
| |
| |
| |
| | |
| Clause 5, page 4, line 1, leave out subsection (3). |
|
| |
| |
| |
| |
| | |
| Clause 5, page 4, line 16, leave out subsection (7). |
|
| |
| | |
| Clause 5, page 4, line 18, leave out ‘that section’ and insert ‘section 185 of that Act |
|
| (agreement with more than one debtor or hirer)’. |
|
| |
| |
| |
| |
| | |
| Clause 5, page 4, line 25, leave out ‘or 16B’. |
|
|
|
| |
| |
|
| | Clause, as amended, Agreed to. |
|
| |
| |
| |
| | |
| Clause 6, page 4, line 32, after ‘made’, insert ‘or the mid-point of the loan, |
|
| |
| |
| |
| | |
| Clause 6, page 4, line 36, at end insert— |
|
| | ‘(c) | shall clearly state within the agreement the amount borrowed and the |
|
| | total interest payable on the loan; and |
|
| | (d) | shall advise the debtor borrowing on credit cards that for long term |
|
| | balances other credit products such as loans or overdrafts may be |
|
| | |
| | (e) | shall be obliged to give free and impartial advice to the debtor as to |
|
| | alternative products that may reduce the cost of borrowing.’. |
|
| |
| |
| |
| |
| | |
| Clause 6, page 4, line 38, at end insert ‘but shall include— |
|
| | (a) | the amount paid by the debtor to the lender to date; |
|
| | (b) | the amount remaining to be paid by the debtor to the lender; and |
|
| | (c) | the remaining term of the agreement.’. |
|
| |
| |
| |
| |
| | |
| Clause 6, page 5, line 37, at end insert— |
|
| | ‘(7A) | In addition to the statement referred to in subsection (1) above the lender shall |
|
| | also provide the debtor with a statement at the outset of the agreement. |
|
| | (7B) | Regulations may make provisions about the form and content of the statements |
|
| | under (7A), but the contents shall include a clear guide as to— |
|
| | (a) | the redress procedures available to the debtor if any dispute regarding the |
|
| | agreement shall arise, with particular respect to the Financial Services |
|
| | Ombudsman and the Financial Services Authority; |
|
| | (b) | sources of information and advice with regard to the debtor’s rights under |
|
| | the terms of this Act and the 1974 Act; and |
|
| | (c) | any charges, other than interest payments, which the lender may |
|
| | |
| | |
|
|
| |
| |
|
| | |
| |
| |
| |
| |
| |
| | |
| Clause 8, page 6, line 35, at end insert ‘, but shall include— |
|
| | (a) | details of the rights of consumers under this Act and the 1974 Act with |
|
| | |
| | (b) | details of redress procedures available to debtors, with particular respect |
|
| | to the Financial Services Ombudsman and the Financial Services |
|
| | |
| | |
| |
| |
| |
| |
| |
| | |
| Clause 9, page 8, line 2, at end insert ‘, but shall include— |
|
| | (a) | details of the rights of consumers under this Act and the 1974 Act with |
|
| | |
| | (b) | details of redress procedures available to debtors, with particular respect |
|
| | to the Financial Services Ombudsman and the Financial Services |
|
| | |
| |
| |
| |
| |
| | |
| Clause 9, page 8, line 6, leave out ‘four’ and insert ‘six’. |
|
| | |
| |
| |
| |
| |
| |
| | |
| Clause 10, page 8, line 37, at end insert ‘, but shall include— |
|
|
|
| |
| |
|
| | (a) | details of the rights of consumers under this Act and the 1974 Act with |
|
| | |
| | (b) | details of redress procedures available to debtors, with particular respect |
|
| | to the Financial Services Ombudsman and the Financial Services |
|
| | |
| | |
| | |
| |
| |
| |
| |
| |
| | |
| Clause 12, page 10, line 22, at end insert— |
|
| | ‘(6A) | The debtor shall not be required to pay a default sum unless the liability to do so |
|
| | is clearly set out in the statement as required under subsection (7B) of section 6 |
|
| | |
| | |
| | Clauses 13 to 18 Agreed to. |
|
| |
| |
| | |
| Clause 19 , page 13, line 13, at end insert— |
|
| | ‘(bb) | the debtor entered into the credit agreement as a result of the creditor |
|
| | sending him an unsolicited pre-approved application form;’. |
|
| |
| |
| | |
| Clause 19, page 13, line 19, leave out ‘matters relating to the creditor’ and insert |
|
| ‘whether the creditor lent responsibly’. |
|
| |
| |
| |
| |
| | |
| Clause 19, page 13, line 19, at end insert— |
|
| | ‘(2A) | In particular, when determining whether an agreement is unfair, the court should |
|
| | |
| | (a) | whether the terms of the agreement, which the lender is seeking to |
|
| | enforce, were clearly set out in the pre-agreement statement provided by |
|
| | the lender to the debtor as set out in subsection (7B) of section 6 of this |
|
| | |
|
|
| |
| |
|
| | (b) | whether the lender has complied with all other requirements of this Act |
|
| | |
| | (c) | whether the initial terms of the agreement might be considered to be |
|
| | significantly unfavourable to the debtor when compared with other |
|
| | similar agreements, when there are no compensating factors within the |
|
| | said agreement available to the debtor; and |
|
| | (d) | whether the running of the agreement might be considered to be |
|
| | significantly unfair to the debtor when taking into account the relative |
|
| | financial strength of the parties to the agreement.’. |
|
| | |
| | Clauses 20 and 21 Agreed to. |
|
| |
| |
| |
| |
| |
| | |
| Clause 22, page 16, line 6, leave out ‘alleges’ and insert ‘demonstrates’. |
|
| | |
| | Clauses 23 and 24 Agreed to. |
|
| |
| |
| |
| |
| |
| | |
| Clause 25, page 18, line 6, at end insert— |
|
| | ‘(2A) | It shall be the responsibility of individuals, partnerships, companies or |
|
| | organisations acting as credit information services as defined in section (7B) of |
|
| | the 1974 Act, or acting as credit reference agencies as defined in subsection (8) |
|
| | of section 145 of the 1974 Act, to take all reasonable steps to ensure that the |
|
| | information which they store on any individual, partnership, company or |
|
| | organisation, and which they impart to a third party, is accurate, up-to-date, and |
|
| | gives a true reflection of the credit record of the said individual, partnership, |
|
| | |
| | (2AA) | Failure to take the steps identified in subsection (2A) shall give rise to the |
|
| | opportunity for the individual, partnership, company or organisation to seek |
|
| | compensation through the civil courts for the keeping of inaccurate information.’. |
|
| | |
| | Clauses 26 to 28 Agreed to. |
|
| |
|
|
| |
| |
|
| |
| | |
| Clause 29, page 21, line 39, leave out ‘has applied to’ and insert ‘would’. |
|
| |
| |
| |
| |
| | |
| Clause 29, page 22, line 33, at end insert— |
|
| | ‘(4) | The Secretary of State may, by order subject to affirmative resolution, vary the |
|
| | guidance or issue further guidance to the Office of Fair Trading (OFT) with |
|
| | regard to this section, and the OFT shall then be required to have due regard to |
|
| | |
| | Clause, as amended, Agreed to. |
|
| [Adjourned till Thursday at 9.25 a.m. |
|
|