House of Commons portcullis
House of Commons
Session 2004 - 05
Internet Publications
Other Bills before Parliament


S.C.E.

11

 
 

House of Commons

 
 

Tuesday 25th January 2005

 

Standing Committee Proceedings

 

Standing Committee E

 

Consumer Credit Bill

——————————
 

[First and second Sittings]

——————————
 

Mr Gerry Sutcliffe

 

Agreed to

 

That—

 

(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

 

meet at—

 

(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.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  9

 

Clause  3,  page  2,  line  27,  after ‘description’, insert ‘, who shall not be connected

 

through pecuniary interest to the lender’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Not called  10

 

Clause  3,  page  2,  line  30,  at end insert—


 
 

S.C.E.Standing Committee Proceedings: 25th January 2005          

12

 

Consumer Credit Bill, continued

 
 

‘(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

 

subsection (1)(b).’.

 

Clause Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Not selected  11

 

Page  3,  line  2,  leave out Clause 4.

 

Clause Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Graingerer

 

Alistair Burt

 

Not called  12

 

Clause  5,  page  3,  line  37,  leave out ‘or 16B’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Not called  13

 

Clause  5,  page  4,  line  1,  leave out subsection (3).

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Not called  14

 

Clause  5,  page  4,  line  16,  leave out subsection (7).

 

Mr Gerry Sutcliffe

 

Agreed to  1

 

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)’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Not called  15

 

Clause  5,  page  4,  line  25,  leave out ‘or 16B’.


 
 

S.C.E.Standing Committee Proceedings: 25th January 2005          

13

 

Consumer Credit Bill, continued

 
 

Clause, as amended, Agreed to.

 

——————————
 

Malcolm Bruce

 

Dr Jenny Tonge

 

Withdrawn  29

 

Clause  6,  page  4,  line  32,  after ‘made’, insert ‘or the mid-point of the loan,

 

whichever is sooner’.

 

Malcolm Bruce

 

Dr Jenny Tonge

 

Withdrawn  30

 

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

 

available; and

 

(e)    

shall be obliged to give free and impartial advice to the debtor as to

 

alternative products that may reduce the cost of borrowing.’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  16

 

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.’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Negatived on division  17

 

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

 

legitimately make.’.

 

Clause Agreed to.


 
 

S.C.E.Standing Committee Proceedings: 25th January 2005          

14

 

Consumer Credit Bill, continued

 
 

Clause 7 Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  18

 

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

 

regard to defaults; and

 

(b)    

details of redress procedures available to debtors, with particular respect

 

to the Financial Services Ombudsman and the Financial Services

 

Authority.’.

 

Clause Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Not called  19

 

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

 

regard to arrears; and

 

(b)    

details of redress procedures available to debtors, with particular respect

 

to the Financial Services Ombudsman and the Financial Services

 

Authority.’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  20

 

Clause  9,  page  8,  line  6,  leave out ‘four’ and insert ‘six’.

 

Clause Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddel-Grainger

 

Alistair Burt

 

Not called  21

 

Clause  10,  page  8,  line  37,  at end insert ‘, but shall include—


 
 

S.C.E.Standing Committee Proceedings: 25th January 2005          

15

 

Consumer Credit Bill, continued

 
 

(a)    

details of the rights of consumers under this Act and the 1974 Act with

 

regard to arrears;

 

(b)    

details of redress procedures available to debtors, with particular respect

 

to the Financial Services Ombudsman and the Financial Services

 

Authority.’.

 

Clause Agreed to.

 

Clause 11 Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  22

 

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

 

of this Act.’.

 

Clause Agreed to.

 

Clauses 13 to 18 Agreed to.

 

——————————
 

Chris Bryant

 

Withdrawn  8

 

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;’.

 

Malcolm Bruce

 

Dr Jenny Tonge

 

Negatived on division  31

 

Clause  19,  page  13,  line  19,  leave out ‘matters relating to the creditor’ and insert

 

‘whether the creditor lent responsibly’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Negatived on division  23

 

Clause  19,  page  13,  line  19,  at end insert—

 

‘(2A)    

In particular, when determining whether an agreement is unfair, the court should

 

consider—

 

(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

 

Act;


 
 

S.C.E.Standing Committee Proceedings: 25th January 2005          

16

 

Consumer Credit Bill, continued

 
 

(b)    

whether the lender has complied with all other requirements of this Act

 

and the 1974 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.’.

 

Clause Agreed to.

 

Clauses 20 and 21 Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  24

 

Clause  22,  page  16,  line  6,  leave out ‘alleges’ and insert ‘demonstrates’.

 

Clause Agreed to.

 

Clauses 23 and 24 Agreed to.

 

——————————
 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  25

 

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,

 

company or organisation.

 

(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.’.

 

Clause Agreed to.

 

Clauses 26 to 28 Agreed to.

 

——————————

 
 

S.C.E.Standing Committee Proceedings: 25th January 2005          

17

 

Consumer Credit Bill, continued

 
 

Mr Gerry Sutcliffe

 

Agreed to  2

 

Clause  29,  page  21,  line  39,  leave out ‘has applied to’ and insert ‘would’.

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  26

 

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

 

this guidance.’.

 

Clause, as amended, Agreed to.

 

[Adjourned till Thursday at 9.25 a.m.


 
contents
 
House of Commons home page Houses of Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 2005
Revised 26 January 2005