Amendments proposed to the Consumer Credit Bill - continued House of Commons

back to previous text
   

Mr Gerry Sutcliffe

3

Clause     31,     page     24,     line     2,     leave out subsection (8) and insert—

    '"(8)   Subsection (1) shall have effect in relation to a standard licence as if an application could be made for the renewal or further renewal of the licence on the same terms (except as to expiry) even if such an application could not be made because of provision made in a general notice under section 24A(5).

    (9)   Accordingly, in applying subsection (1AA) of section 25 in relation to the licence for the purposes of this section, the OFT shall treat references in that subsection to the description or descriptions of business in relation to a type of business as references to the description or descriptions of business included in the licence in relation to that type of business, notwithstanding that provision under section 24A(5).".'.

   

Mr Gerry Sutcliffe

4

Clause     31,     page     24,     line     13,     leave out 'because a person can no longer' and insert 'simply because, by virtue of provision made in a general notice under section 24A(5), a person cannot'.


   

Mr Gerry Sutcliffe

7

Clause     32,     page     24,     line     20,     after 'step' insert 'for such period as it thinks fit'.

   

Mr Gerry Sutcliffe

5

Clause     32,     page     24,     line     27,     leave out subsections (3) and (4) and insert—

    '(3)   Subject to subsection (4), where the OFT defers the taking of a step falling within subsection (2), the licence shall continue in effect for the period of the deferral—

      (a) on the same terms (disregarding the OFT's determination to take the step falling within subsection (2)); or

      (b) in the case of a step falling within subsection (2)(b), on the terms applied for;

    and, in the case of a step falling within subsection (2)(a) or (b), notwithstanding that apart from this subsection the licence would expire before the end of the period of the deferral.

    (4)   Where the OFT defers the taking of a step falling within subsection (2), it may—

      (a) specify activities or descriptions of activities which are to be excluded from the activities authorised to be carried on by virtue of subsection (3);

      (b) specify requirements which must be complied with by the licensee during the period of the deferral in relation to the activities authorised to be carried on by virtue of that subsection;

      (c) terminate the period of the deferral if the licensee fails to comply with a requirement specified under paragraph (b).

    (4A)   Under subsection (4)(a) an activity may be excluded for the whole of the period of the deferral or for only a specified part of it.'.


   

Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt

28

*Page     39,     line     11,     leave out Clause 48.


   

Mr Gerry Sutcliffe

6

Clause     62,     page     51,     line     3,     leave out '1' and insert '1(1)'.


NEW CLAUSES

Credit-token specification

   

Mr James Plaskitt
Chris Bryant

NC1

To move the following Clause:—

        'After section 14 of the 1974 Act insert—

      "14A Credit-token specification

      A person carrying on a consumer credit business and providing a credit-token agreement to an individual must specify in the agreement the type of credit-token that will be provided and may not provide other additional credit-tokens, including cheques, that may be used to draw on credit accounts without the agreement of the debtor.".'.


Prohibition of unsolicited credit-token applications

   

Chris Bryant

NC2

To move the following Clause:—

       'After section 51 of the 1974 Act insert—

    "51A   Prohibition of unsolicited credit-token applications.

    '(1)   It is an offence to give a person an application form for a credit-token unless he has specifically requested it.

    (2)   To comply with subsection (1), a request must be made by the person making the request either by way of—

      (a) a document signed by that person; or

      (b) a recorded telephone call by that person to the person or company offering the credit-token.".'.


Duties of lenders and debtors

   

Mr Laurence Robertson
Gregory Barker
Mr Ian Liddell-Grainger
Alistair Burt

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

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.'.


Regulatory impact

   

Malcolm Bruce
Dr Jenny Tonge

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

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.'.


ORDER OF THE HOUSE [13th January 2005]

That the following provisions shall apply to the Consumer Credit Bill:

Committal

    1.   The Bill shall be committed to a Standing Committee

Proceedings in Standing Committee

    2.   Proceedings in the Standing Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 3rd February 2005.

    3.   The Standing Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

    4.   Proceedings on consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

    5.   Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

Programming Committee

    6.   Standing Order No. 83B (Programming committees) shall not apply to proceedings on consideration and Third Reading.

Programming of proceedings

    7.   Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.


 
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