05016sc.148-149

House of Commons

Session 2004 - 05
Internet Publications
Other Bills before Parliament

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Withdrawn  nc3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Withdrawn  nc4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Withdrawn  nc5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.