Consumer Credit Bill

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Consumer Credit Bill

Consumer Credit Bill
51

61
Consequential amendments relating to ombudsman scheme
(1)
In section 4 of the 1974 Act (OFT to disseminate information and advice) after
“the operation of this Act,” insert “the consumer credit jurisdiction under Part
16 of the Financial Services and Markets Act 2000,”.
(2)
In section 227(2)(e) of the 2000 Act (conditions for exercise of voluntary
5
jurisdiction) after “jurisdiction” insert “or the consumer credit jurisdiction”.
(3)
In sections 228(1) and 229(1) of that Act (determinations and awards by
ombudsman) after “jurisdiction” insert “and to the consumer credit
jurisdiction”.
(4)
In subsection (4) of section 229 of that Act (awards by ombudsman) after
10
“specify” insert “for the purposes of the compulsory jurisdiction”.
(5)
After that subsection insert—
“(4A)
The scheme operator may specify for the purposes of the consumer
credit jurisdiction the maximum amount which may be regarded as fair
compensation for a particular kind of loss or damage specified under
15
subsection (3)(b).”
(6)
In subsection (8)(b) of that section after “17” insert “or (as the case may be) Part
3A of that Schedule”.
(7)
For subsection (11) of that section substitute—
“(11)
‘Specified’ means—
20
(a)
for the purposes of the compulsory jurisdiction, specified in
compulsory jurisdiction rules;
(b)
for the purposes of the consumer credit jurisdiction, specified in
consumer credit rules.
(12)
Consumer credit rules under this section may make different provision
25
for different cases.”
(8)
In section 230 of that Act (costs)—
(a)
in subsection (1) after “jurisdiction” insert “or the consumer credit
jurisdiction”;
(b)
in subsection (7) after “17” insert “or (as the case may be) paragraph
30
16D of that Schedule”.
(9)
In section 353(1) of that Act (power to permit disclosure of information) after
paragraph (b) insert—
“(c)
by the scheme operator to the Office of Fair Trading for the
purpose of assisting or enabling that Office to discharge
35
prescribed functions under the Consumer Credit Act 1974.”
(10)
In Schedule 17 to that Act (the ombudsman scheme)—
(a)
in paragraph 3(4) after “227” insert “, the function of making consumer
credit rules, the function of making determinations under section
234A(1)”;
40
(b)
in paragraph 7(2) after “compulsory jurisdiction” insert “, functions in
relation to its consumer credit jurisdiction”;
(c)
in paragraph 9(3) after “compulsory” insert “, consumer credit”;
(d)
in paragraphs 10(1) and 11 after “jurisdiction” insert “or to the
consumer credit jurisdiction”.
45

Consumer Credit Bill
52

Miscellaneous
62
Monitoring of businesses by OFT
In section 1(1) of the 1974 Act (general functions of OFT) after paragraph (b)
insert—
“(ba)
to monitor, as it sees fit, businesses being carried on under
5
licences;”.
63
Disapplication of s.101 of the 1974 Act
(1)
In section 101 of the 1974 Act (right of hirer to terminate regulated consumer
hire agreement) after subsection (8) insert—
“(8A)
If it appears to the OFT that it would be in the interests of hirers to do
10
so, it may by general notice direct that, subject to such conditions (if
any) as it may specify, this section shall not apply to a consumer hire
agreement if the agreement falls within a specified description; and this
Act shall have effect accordingly.”
(2)
In subsection (8) of that section for the words from “this section” onwards
15
substitute “, subject to such conditions (if any) as it may specify, this section
shall not apply to consumer hire agreements made by the applicant; and this
Act shall have effect accordingly”.
64
Determinations etc. by OFT
For section 183 of the 1974 Act (determinations etc. by OFT) substitute—
20
“183
Determinations etc. by OFT
(1)
The OFT may vary or revoke any determination made, or direction
given, by it under this Act.
(2)
Subsection (1) does not apply to—
(a)
a determination to issue, renew or vary a licence;
25
(b)
a determination to extend a period under section 28B or to
refuse to extend a period under that section;
(c)
a determination to end a suspension under section 33;
(d)
a determination to make an order under section 40(2), 148(2) or
149(2);
30
(e)
a determination mentioned in column 1 of the Table in section
41.”
65
Sums received by OFT
In section 190(2) of the 1974 Act (fees received by OFT to be paid into the Consolidated
Fund) after “fees” insert “, charges, penalties or other sums”.
35
Final provisions
66
Financial provision
There shall be payable out of money provided by Parliament—

Consumer Credit Bill
53

(a)
any expenditure incurred by a Minister of the Crown or the Office of Fair
Trading by virtue of this Act; and
(b)
any increase attributable to this Act in the sums payable out of money so
provided by virtue of any other Act.
67
Interpretation
5
In this Act—
“the 1974 Act” means the Consumer Credit Act 1974 (c. 39);
“the 2000 Act” means the Financial Services and Markets Act 2000 (c. 8).
68
Consequential amendments
(1)
The Secretary of State may by order made by statutory instrument make such
10
modifications of—
(a)
any Act or subordinate legislation (within the meaning of the
Interpretation Act 1978 (c. 30)), or
(b)
any Northern Ireland legislation or instrument made under such
legislation,
15

as he thinks fit in consequence of any provision of this Act.
(2)
An order under this section may include transitional or transitory provisions
and savings.
(3)
A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.
20
69
Transitional provision and savings
(1)
Schedule 3 (which sets out transitional provision and savings) has effect.
(2)
The Secretary of State may by order made by statutory instrument make such
transitional or transitory provisions and savings as he thinks fit in connection
with the coming into force of any provision of this Act.
25
(3)
An order under this section may (amongst other things)—
(a)
where a provision of this Act is brought into force for limited purposes
only, make provision about how references in Schedule 3 to the
commencement of that provision of this Act are to apply;
(b)
make provision for or in connection with the application of any
30
provision of this Act in relation to—
(i)
things existing or done, or
(ii)
persons who have done something or in relation to whom
something has been done,

before the coming into force of that provision of this Act.
35
(4)
An order under this section may—
(a)
modify any Act or any subordinate legislation (within the meaning of
the Interpretation Act 1978);
(b)
modify any Northern Ireland legislation or any instrument made under
such legislation;
40
(c)
make different provision for different cases.

Consumer Credit Bill
54

(5)
Schedule 3 does not restrict the power under this section to make transitional
or transitory provisions or savings.
70
Repeals
The enactments and instruments set out in Schedule 4 are repealed or revoked
to the extent shown in that Schedule.
5
71
Short title, commencement and extent
(1)
This Act may be cited as the Consumer Credit Act 2005.
(2)
This Act (apart from this section) shall come into force on such day as the
Secretary of State may by order made by statutory instrument appoint; and
different days may be appointed for different purposes.
10
(3)
This Act extends to Northern Ireland.