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Consumer Credit Bill


Consumer Credit Bill

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57      

Appeals from the Consumer Credit Appeals Tribunal

In Part 3 of the 1974 Act after section 41 insert—

“41A    

Appeals from the Consumer Credit Appeals Tribunal

(1)   

A party to an appeal to the Tribunal may with leave appeal—

(a)   

in England and Wales and Northern Ireland, to the Court of

5

Appeal, or

(b)   

in Scotland, to the Court of Session,

   

on a point of law arising from a decision of the Tribunal.

(2)   

For the purposes of subsection (1) leave to appeal may be given by—

(a)   

the Tribunal; or

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(b)   

the Court of Appeal or the Court of Session.

(3)   

An application for leave to appeal may be made to the Court of Appeal

or the Court of Session only if the Tribunal has refused such leave.

(4)   

If on an appeal under this section the court considers that the decision

of the Tribunal was wrong in law, it may do one or more of the

15

following—

(a)   

quash or vary that decision;

(b)   

substitute for that decision a decision of its own;

(c)   

remit the matter to the Tribunal for rehearing and

determination in accordance with the directions (if any) given

20

to it by the court.

(5)   

An appeal may be brought from a decision of the Court of Appeal

under this section only if leave to do so is given by the Court of Appeal

or the House of Lords.

(6)   

Rules under section 40A(3) may make provision for regulating or

25

prescribing any matters incidental to or consequential on an appeal

under this section.

(7)   

In this section ‘party’ means, in relation to an appeal to the Tribunal,

the appellant or the OFT.”

58      

Consequential amendments relating to appeals

30

(1)   

In section 2(7) of the 1974 Act (restriction on power to give directions to OFT)

for “Secretary of State” substitute “the Tribunal”.

(2)   

In section 182 of that Act (regulations and orders) after subsection (1) insert—

“(1A)   

The power of the Lord Chancellor to make rules under section 40A(3)

shall be exercisable by statutory instrument subject to annulment in

35

pursuance of a resolution of either House of Parliament.”

(3)   

In subsection (2) of that section—

(a)   

after “orders” wherever occurring insert “or rules”;

(b)   

after “by the Secretary of State” insert “or by the Lord Chancellor”;

(c)   

in paragraph (c) for “Secretary of State” substitute “person making

40

them”.

(4)   

In section 189(1) of that Act (definitions)—

 
 

Consumer Credit Bill

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(a)   

in the definition of “appeal period” for “Secretary of State” substitute

“Tribunal”;

(b)   

after the definition of “total price” insert—

“‘the Tribunal’ means the Consumer Credit Appeals

Tribunal;”.

5

(5)   

In Schedule 1 to the Tribunals and Inquiries Act 1992 (c. 53) (tribunals under

supervision of Council of Tribunals) after paragraph 9A insert—

 

“Consumer credit

9B. The Consumer Credit

 
  

Appeals Tribunal established

 
  

by section 40A of the

 

10

  

Consumer Credit Act 1974.”

 

Ombudsman scheme

59      

Financial services ombudsman scheme to apply to consumer credit licensees

(1)   

After section 226 of the 2000 Act insert—

“226A   

Consumer credit jurisdiction

15

(1)   

A complaint which relates to an act or omission of a person (‘the

respondent’) is to be dealt with under the ombudsman scheme if the

conditions mentioned in subsection (2) are satisfied.

(2)   

The conditions are that—

(a)   

the complainant is eligible and wishes to have the complaint

20

dealt with under the scheme;

(b)   

the complaint falls within a description specified in consumer

credit rules;

(c)   

at the time of the act or omission the respondent was the

licensee under a standard licence;

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(d)   

the act or omission occurred in the course of a business being

carried on by the respondent which was of a type mentioned in

subsection (3);

(e)   

at the time of the act or omission that type of business was

specified in an order made by the Secretary of State; and

30

(f)   

the complaint cannot be dealt with under the compulsory

jurisdiction.

(3)   

The types of business referred to in subsection (2)(d) are—

(a)   

a consumer credit business;

(b)   

a consumer hire business;

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(c)   

a business so far as it comprises or relates to credit brokerage;

(d)   

a business so far as it comprises or relates to debt-adjusting;

(e)   

a business so far as it comprises or relates to debt-counselling;

(f)   

a business so far as it comprises or relates to debt-collecting;

(g)   

a business so far as it comprises or relates to debt

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administration;

(h)   

a business so far as it comprises or relates to the provision of

credit information services;

 
 

Consumer Credit Bill

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(i)   

a business so far as it comprises or relates to the operation of a

credit reference agency.

(4)   

A complainant is eligible if—

(a)   

he is—

(i)   

an individual; or

5

(ii)   

a surety in relation to a security provided to the

respondent in connection with the business mentioned

in subsection (2)(d); and

(b)   

he falls within a class of person specified in consumer credit

rules.

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(5)   

The approval of the Treasury is required for an order under subsection

(2)(e).

(6)   

The jurisdiction of the scheme which results from this section is

referred to in this Act as the ‘consumer credit jurisdiction’.

(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

consumer credit jurisdiction.

(8)   

Consumer credit rules under this section may make different provision

for different cases.

(9)   

Expressions used in the Consumer Credit Act 1974 have the same

20

meaning in this section as they have in that Act.”

(2)   

In Schedule 17 to that Act (the ombudsman scheme) after Part 3 insert the Part

3A set out in Schedule 2 to this Act.

60      

Funding of ombudsman scheme

In Part 16 of the 2000 Act after section 234 insert—

25

“234A   

Funding by consumer credit licensees etc.

(1)   

For the purpose of funding—

(a)   

the establishment of the ombudsman scheme so far as it relates

to the consumer credit jurisdiction (whenever any relevant

expense is incurred), and

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(b)   

its operation in relation to the consumer credit jurisdiction,

   

the scheme operator may from time to time with the approval of the

Authority determine a sum which is to be raised by way of

contributions under this section.

(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

costs’) under this section.

(3)   

The scheme operator must notify the OFT of every determination

under subsection (1).

(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—

(a)   

licensees to whom this section applies, or

(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

determined under subsection (1).

(6)   

The amount of the contribution payable by a person under such a

requirement—

(a)   

shall be the amount specified in or determined under the

5

general notice; and

(b)   

shall be paid before the end of the period or at the time so

specified or determined.

(7)   

A general notice under subsection (5) may—

(a)   

impose requirements only on descriptions of licensees or

10

applicants specified in the notice;

(b)   

provide for exceptions from any requirement imposed on a

description of licensees or applicants;

(c)   

impose different requirements on different descriptions of

licensees or applicants;

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(d)   

make provision for refunds in specified circumstances.

(8)   

Contributions received by the OFT must be paid to the scheme

operator.

(9)   

As soon as practicable after the end of—

(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

to apply instead of paragraph (a) for the time being, each period

agreed by them,

   

the scheme operator must pay to the OFT an amount representing the

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

to it during the year or (as the case may be) the agreed period.

(10)   

Amounts received by the OFT from the scheme operator are to be

retained by it for the purpose of meeting its costs.

(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

scheme operator.

(12)   

An order under subsection (11) may provide that while the order is in

force this section shall have effect subject to such modifications as may

be set out in the order.

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(13)   

The licensees to whom this section applies are licensees under standard

licences which cover to any extent the carrying on of a type of business

specified in an order under section 226A(2)(e).

(14)   

The applications to which this section applies are applications for—

(a)   

standard licences covering to any extent the carrying on of a

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business of such a type;

(b)   

the renewal of standard licences on terms covering to any extent

the carrying on of a business of such a type.

(15)   

Expressions used in the Consumer Credit Act 1974 have the same

meaning in this section as they have in that Act.”

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