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57 | Appeals from the Consumer Credit Appeals Tribunal |
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In Part 3 of the 1974 Act after section 41 insert— |
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“41A | Appeals from the Consumer Credit Appeals Tribunal |
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(1) | A party to an appeal to the Tribunal may with leave appeal— |
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(a) | in England and Wales and Northern Ireland, to the Court of |
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(b) | in Scotland, to the Court of Session, |
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| on a point of law arising from a decision of the Tribunal. |
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(2) | For the purposes of subsection (1) leave to appeal may be given by— |
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(b) | the Court of Appeal or the Court of Session. |
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(3) | An application for leave to appeal may be made to the Court of Appeal |
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or the Court of Session only if the Tribunal has refused such leave. |
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(4) | If on an appeal under this section the court considers that the decision |
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of the Tribunal was wrong in law, it may do one or more of the |
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(a) | quash or vary that decision; |
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(b) | substitute for that decision a decision of its own; |
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(c) | remit the matter to the Tribunal for rehearing and |
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determination in accordance with the directions (if any) given |
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(5) | An appeal may be brought from a decision of the Court of Appeal |
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under this section only if leave to do so is given by the Court of Appeal |
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(6) | Rules under section 40A(3) may make provision for regulating or |
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prescribing any matters incidental to or consequential on an appeal |
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(7) | In this section ‘party’ means, in relation to an appeal to the Tribunal, |
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the appellant or the OFT.” |
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58 | Consequential amendments relating to appeals |
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(1) | In section 2(7) of the 1974 Act (restriction on power to give directions to OFT) |
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for “Secretary of State” substitute “the Tribunal”. |
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(2) | In section 182 of that Act (regulations and orders) after subsection (1) insert— |
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“(1A) | The power of the Lord Chancellor to make rules under section 40A(3) |
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shall be exercisable by statutory instrument subject to annulment in |
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pursuance of a resolution of either House of Parliament.” |
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(3) | In subsection (2) of that section— |
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(a) | after “orders” wherever occurring insert “or rules”; |
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(b) | after “by the Secretary of State” insert “or by the Lord Chancellor”; |
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(c) | in paragraph (c) for “Secretary of State” substitute “person making |
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(4) | In section 189(1) of that Act (definitions)— |
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(a) | in the definition of “appeal period” for “Secretary of State” substitute |
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(b) | after the definition of “total price” insert— |
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“‘the Tribunal’ means the Consumer Credit Appeals |
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(5) | In Schedule 1 to the Tribunals and Inquiries Act 1992 (c. 53) (tribunals under |
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supervision of Council of Tribunals) after paragraph 9A insert— |
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| | | | | | | Appeals Tribunal established |
| | | | | | | 10 | | | Consumer Credit Act 1974.” |
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59 | Financial services ombudsman scheme to apply to consumer credit licensees |
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(1) | After section 226 of the 2000 Act insert— |
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“226A | Consumer credit jurisdiction |
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(1) | A complaint which relates to an act or omission of a person (‘the |
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respondent’) is to be dealt with under the ombudsman scheme if the |
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conditions mentioned in subsection (2) are satisfied. |
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(2) | The conditions are that— |
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(a) | the complainant is eligible and wishes to have the complaint |
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dealt with under the scheme; |
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(b) | the complaint falls within a description specified in consumer |
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(c) | at the time of the act or omission the respondent was the |
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licensee under a standard licence; |
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(d) | the act or omission occurred in the course of a business being |
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carried on by the respondent which was of a type mentioned in |
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(e) | at the time of the act or omission that type of business was |
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specified in an order made by the Secretary of State; and |
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(f) | the complaint cannot be dealt with under the compulsory |
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(3) | The types of business referred to in subsection (2)(d) are— |
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(a) | a consumer credit business; |
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(b) | a consumer hire business; |
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(c) | a business so far as it comprises or relates to credit brokerage; |
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(d) | a business so far as it comprises or relates to debt-adjusting; |
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(e) | a business so far as it comprises or relates to debt-counselling; |
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(f) | a business so far as it comprises or relates to debt-collecting; |
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(g) | a business so far as it comprises or relates to debt |
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(h) | a business so far as it comprises or relates to the provision of |
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credit information services; |
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(i) | a business so far as it comprises or relates to the operation of a |
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(4) | A complainant is eligible if— |
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(ii) | a surety in relation to a security provided to the |
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respondent in connection with the business mentioned |
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in subsection (2)(d); and |
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(b) | he falls within a class of person specified in consumer credit |
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(5) | The approval of the Treasury is required for an order under subsection |
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(6) | The jurisdiction of the scheme which results from this section is |
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referred to in this Act as the ‘consumer credit jurisdiction’. |
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(7) | In this Act ‘consumer credit rules’ means rules made by the scheme |
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operator with the approval of the Authority for the purposes of the |
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consumer credit jurisdiction. |
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(8) | Consumer credit rules under this section may make different provision |
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(9) | Expressions used in the Consumer Credit Act 1974 have the same |
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meaning in this section as they have in that Act.” |
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(2) | In Schedule 17 to that Act (the ombudsman scheme) after Part 3 insert the Part |
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3A set out in Schedule 2 to this Act. |
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60 | Funding of ombudsman scheme |
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In Part 16 of the 2000 Act after section 234 insert— |
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“234A | Funding by consumer credit licensees etc. |
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(1) | For the purpose of funding— |
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(a) | the establishment of the ombudsman scheme so far as it relates |
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to the consumer credit jurisdiction (whenever any relevant |
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expense is incurred), and |
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(b) | its operation in relation to the consumer credit jurisdiction, |
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| the scheme operator may from time to time with the approval of the |
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Authority determine a sum which is to be raised by way of |
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contributions under this section. |
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(2) | A sum determined under subsection (1) may include a component to |
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cover the costs of the collection of contributions to that sum (‘collection |
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costs’) under this section. |
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(3) | The scheme operator must notify the OFT of every determination |
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(4) | The OFT must give general notice of every determination so notified. |
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(5) | The OFT may by general notice impose requirements on— |
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(a) | licensees to whom this section applies, or |
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(b) | persons who make applications to which this section applies, |
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| to pay contributions to the OFT for the purpose of raising sums |
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determined under subsection (1). |
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(6) | The amount of the contribution payable by a person under such a |
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(a) | shall be the amount specified in or determined under the |
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(b) | shall be paid before the end of the period or at the time so |
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(7) | A general notice under subsection (5) may— |
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(a) | impose requirements only on descriptions of licensees or |
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applicants specified in the notice; |
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(b) | provide for exceptions from any requirement imposed on a |
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description of licensees or applicants; |
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(c) | impose different requirements on different descriptions of |
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(d) | make provision for refunds in specified circumstances. |
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(8) | Contributions received by the OFT must be paid to the scheme |
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(9) | As soon as practicable after the end of— |
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(a) | each financial year of the scheme operator, or |
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(b) | if the OFT and the scheme operator agree that this paragraph is |
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to apply instead of paragraph (a) for the time being, each period |
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| the scheme operator must pay to the OFT an amount representing the |
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extent to which collection costs are covered in accordance with |
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subsection (2) by the total amount of the contributions paid by the OFT |
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to it during the year or (as the case may be) the agreed period. |
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(10) | Amounts received by the OFT from the scheme operator are to be |
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retained by it for the purpose of meeting its costs. |
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(11) | The Secretary of State may by order provide that the functions of the |
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OFT under this section are for the time being to be carried out by the |
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(12) | An order under subsection (11) may provide that while the order is in |
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force this section shall have effect subject to such modifications as may |
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(13) | The licensees to whom this section applies are licensees under standard |
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licences which cover to any extent the carrying on of a type of business |
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specified in an order under section 226A(2)(e). |
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(14) | The applications to which this section applies are applications for— |
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(a) | standard licences covering to any extent the carrying on of a |
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(b) | the renewal of standard licences on terms covering to any extent |
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the carrying on of a business of such a type. |
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(15) | Expressions used in the Consumer Credit Act 1974 have the same |
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meaning in this section as they have in that Act.” |
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