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S.C.E.Standing Committee Proceedings: 27th January 2005          

148

 

Consumer Credit Bill, continued

 
 

Duties of lenders and debtors

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  nc3

 

To move the following Clause:—

 

‘(1)    

A lender who provides credit or loans to a debtor so that the debtor may purchase

 

goods and/or services from a third party, who acts as an agent for the lender, in

 

terms of signing debtors up to financial agreements, shall take all reasonable steps

 

to ensure that—

 

(a)    

the goods and/or services provided by the goods and/or services provider

 

are of a merchantable quality;

 

(b)    

that the goods and/or services are legal;

 

(c)    

that the provider of the goods and/or services, when acting as a credit

 

agent on behalf of a lender, does so in a professional and honest manner

 

and behaves in a way which could be considered reasonable in all

 

aspects;

 

(d)    

that the provider of goods and/or services, when acting as a credit agent

 

on behalf of the lender, has not acted fraudulently in any way with respect

 

to the setting up and/or running of the credit agreement and the provision

 

of those goods and/or services; and

 

(e)    

that the goods and/or services provider, when acting as a credit agent on

 

behalf of the debtor, complies with the requirements of this Act and the

 

1974 Act.

 

(2)    

It shall be for the debtor to demonstrate that the provider of goods and/or services

 

has acted in an irresponsible or illegal way, having regard to the subsections

 

above.

 

(3)    

If the debtor so demonstrates, it shall be for the lender to show that he has taken

 

all reasonable steps to ensure that the requirements of the above subsections have

 

been met.

 

(4)    

If the lender fails so to do to the satisfaction of the court, the court shall have the

 

power to review the agreement.’.

 

——————————
 

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

 

Mr Laurence Robertson

 

Gregory Barker

 

Mr Ian Liddell-Grainger

 

Alistair Burt

 

Withdrawn  nc4

 

To move the following Clause:—

 

‘Section 100 of the 1974 Act shall cease to have effect, other than for those

 

agreements in place at the time of this Act coming into force.’.

 

——————————

 
 

S.C.E.Standing Committee Proceedings: 27th January 2005          

149

 

Consumer Credit Bill, continued

 
 

Regulatory impact

 

Malcolm Bruce

 

Dr Jenny Tonge

 

Withdrawn  nc5

 

To move the following Clause:—

 

‘(1)    

The Office of Fair Trading (OFT) will report to the Secretary of State and to

 

Parliament annually on the impact of its monitoring of businesses being carried

 

on under licences and its determinations to issue, renew or vary a licence under

 

the provisions of this Act.

 

(2)    

The Secretary of State will after a period of no more than five years, consult on

 

and publish an assessment of the impact the Act has had in terms of regulatory

 

burden and harmonisation with European Directives.’.

 

——————————
 

Office of Fair Trading: further duties

 

Malcolm Bruce

 

Dr Jenny Tonge

 

Not called  nc6

 

To move the following Clause:—

 

‘(1)    

The Office of Fair Trading (OFT) shall consult other financial agencies and

 

produce a standard requirement for the presentation of interest rates to enable

 

direct comparison between products.

 

(2)    

The OFT shall periodically, and at least annually, publish the range of interest

 

rates on the market for specified products.

 

(3)    

The OFT shall further publish court rulings and advice of the ombudsman on

 

levels of interest rates for particular products which are likely to be deemed unfair

 

under section 19.’.

 

Bill, as amended, to be reported.

 

 

Minutes of proceedings to lie upon the table.


 
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