S.C.E.
NOTICES OF AMENDMENTS
given up to and including
Friday 21st January 2005
New Amendments handed in are marked thus *
STANDING COMMITTEE E
CONSUMER CREDIT BILL
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
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
10
*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 subsection (1)(b).'. |
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
11
*Page 3, line 2, leave out Clause 4.
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Graingerer
Alistair Burt
12
*Clause 5, page 3, line 37, leave out 'or 16B'.
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
13
*Clause 5, page 4, line 1, leave out subsection (3).
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
14
*Clause 5, page 4, line 16, leave out subsection (7).
Mr Gerry Sutcliffe
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
15
*Clause 5, page 4, line 25, leave out 'or 16B'.
Malcolm Bruce
Dr Jenny Tonge
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
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
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
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.'. |
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
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.'. |
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
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
20
*Clause 9, page 8, line 6, leave out 'four' and insert 'six'.
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddel-Grainger
Alistair Burt
21
*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 regard to arrears; |
| (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
22
*Clause 12, page 10, line 23, 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 (7) of section 6 of this Act.'.
Chris Bryant
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
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
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 7 of section 6 of this Act; |
| (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.'. |
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
24
*Clause 22, page 16, line 6, leave out 'alleges' and insert 'demonstrates'.
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
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 subsection (1), or acting as credit reference agencies as defined in subsection (1) 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.'.
Mr Gerry Sutcliffe
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
26
*Clause 29, page 22, line 33, at end insert—
'(4) The Secretary of State may, by order by Statutory Instrument, 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.'.
Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt
27
*Clause 30, page 22, line 46, at end insert ', and shall have regard to the regulations issued by the Secretary of State.'.
