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

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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

32

*Clause     34,     page     27,     line     39,     at end insert—

    '(1E)   In all cases, the OFT shall state its reason for allowing for a limited period only, when the application was for an indefinite period, and those reasons shall be consistent with the guidelines the OFT itself sets out.'.


   

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

28

Page     39,     line     11,     leave out Clause 48.


   

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

33

*Clause     42,     page     33,     line     27,     leave out subsection (3) and insert—

    '(3)   The OFT shall have the duty to take all reasonable steps to ensure that the revised guidance is brought to the attention of those likely to be affected by it.'.

   

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

34

*Clause     42,     page     33,     line     31,     at end insert ', which shall include a representative sample of those likely to be affected by it.'.


   

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

35

*Clause     47,     page     38,     line     27,     at end insert—

    '(7A)   It shall be the duty of the OFT to take all reasonable steps to ensure that its own officers, or those of the enforcement agency, shall, when entering and while on the premises by virtue of this section, at all times behave in a reasonable and professional manner.'.


   

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

36

*Clause     51,     page     42,     line     43,     at end add—

    '(9)   The OFT shall maintain a record of all visits to premises carried out by virtue of the relevant sections of this Act, and those records shall be made available to the appeal authorities set up by this Act.'.


   

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

37

*Clause     52,     page     43,     line     16,     at end insert 'This amount may be altered by the Secretary of State by Statutory Instrument.'.

   

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

38

*Clause     52,     page     43,     line     23,     after 'OFT', insert 'through the courts'.


   

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

39

*Clause     53,     page     43,     line     41,     leave out 'and'.

   

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

40

*Clause     53,     page     44,     line     3,     at end insert '; and informing him of his right of appeal against this penalty.'.

   

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

41

*Clause     53,     page     44,     line     11,     at end insert—

      '(c) the effect such a penalty will have on the ability of the person to continue to run the business.'.


   

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

42

*Clause     54,     page     44,     line     34,     at end insert ', who shall have the power to order that the statement of policy shall be amended if he is not satisfied with it.'.

   

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

43

*Clause     54,     page     44,     line     39,     at end insert ', which shall include a representative sample of those likely to be affected by it.'.


   

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

44

*Clause     60,     page     49,     line     41,     at end add—

    '(16)   No licensee shall have to pay to the Ombudsman or its scheme operator any money until such time as the case is decided against him.'.


   

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.'.



 
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