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Index of Amendments


Amendment Paper as at
Tuesday 28th June 2005


New Amendments handed in are marked thus *



The Amendments have been arranged in accordance with the Order of the Committee [23rd June 2005].


Mr Gerry Sutcliffe


Clause     27,     page     21,     line     22,     at end insert—

    '( )   In section 189 of that Act (definitions) after subsection (1) insert—

    "(1A)   In sections 36E(3), 70(4), 73(4) and 75(2) and paragraphs 14 and 15 of Schedule 1A 'costs', in relation to proceedings in Scotland, means expenses.".'.


John Battle


Clause     30,     page     24,     line     7,     at end insert—

        'and that guidance shall include a duty on licence holders to lend responsibly.'.


Mr Gerry Sutcliffe


Clause     32,     page     26,     line     17,     at end insert—

    '( )   Without prejudice to the generality of paragraph (c) of subsection (3), a requirement specified under that paragraph may have the effect of—

(a) preventing a named person from being an employee of a person carrying on activities under the authorisation, or restricting the activities he may engage in as an employee of such a person; or

(b) preventing a named person from doing something, or restricting his doing something, in connection with activities being carried on by a person under the authorisation;

(c) securing that access to premises is given to officers of the OFT for the purpose of enabling them to inspect documents or to observe the carrying on of activities.'.


Mr Gerry Sutcliffe


Clause     34,     page     28,     line     40,     after 'fit', insert (subject to subsection (1E))'.


Mr Gerry Sutcliffe


Clause     34,     page     29,     line     4,     at end insert—

    '(1E)   Where a licence which has effect indefinitely is to be varied under section 30 or 31 for the purpose of limiting the licence's duration, the variation shall provide for the licence to expire—

(a) in the case of a variation under section 30, at the end of such period from the time of the variation as is set out in the application for the variation; or

(b) in the case of a variation under section 31, at the end of such period from the time of the variation as the OFT thinks fit;

    but a period mentioned in paragraph (a) or (b) shall not exceed the prescribed period.'.


Mr Gerry Sutcliffe


Clause     34,     page     29,     line     13,     leave out '(1D)' and insert '(1E)'.


Charles Hendry
Michael Fabricant


Clause     38,     page     31,     line     32,     leave out subsection (1) and insert—

    '(1)   This section applies where the OFT has reasonable grounds for believing that a licensee or an associate or a former associate of a licensee—

(a) has engaged in conduct which breaches any provision of or under the 1974 Act;

(b) is engaging in such conduct; or

(c) is likely to engage in such conduct.'.


Mr Gerry Sutcliffe


Clause     43,     page     34,     line     39,     leave out from beginning to '(particulars' in line 5 on page 35 and insert—

    '( )   In section 35(1) of the 1974 Act'.


Norman Lamb


Clause     52,     page     44,     line     8,     leave out from first 'is' to 'it' in line 10 and insert— 'either—

(a) satisfied that a person (the "defaulter") has failed or is failing to comply with a requirement imposed on him by virtue of section 33A, 33B or 36A, or

(b) dissatisfied with the conduct of the licensee,'.


Norman Lamb


Clause     52,     page     44,     line     20,     leave out '£50,000' and insert '10 per cent. of the licensee's gross annual turnover in the year in which the fine is imposed'.


Charles Hendry
Michael Fabricant


Clause     52,     page     44,     line     20,     at end insert—

    '(3A)   The amount specified in subsection (3) shall be reviewed by the Secretary of State within five years of the passing of this Act, and thereafter at five year intervals.

    (3B)   The Secretary of State may, by regulation, amend the amount specified in subsection (3) following a review in accordance with subsection (3A).'.


Mr Gerry Sutcliffe


Schedule     1,     page     57,     line     33,     after 'limits', insert '(including the period specified for the purposes of section 41(1) of this Act)'.


Mr Gerry Sutcliffe


Clause     59,     page     48,     line     25,     after 'licence', insert 'or was authorised to carry on an activity by virtue of section 34A of the Consumer Credit Act 1974'.


Mr Gerry Sutcliffe


Schedule     2,     page     60,     line     41,     at end insert—

    '( ) Consumer credit rules under sub-paragraph (3) may authorise the scheme operator to dispense with or modify the application of such rules in particular cases where the scheme operator—

    (a)   considers it appropriate to do so; and

    (b)   is satisfied that the specified conditions (if any) are met.'.


Mr Gerry Sutcliffe


Schedule     3,     page     64,     line     7,     leave out 'payable' and insert 'that are required to be paid'.


Charles Hendry
Michael Fabricant


Schedule     3,     page     65,     line     22,     after 'Act', insert 'except credit agreements where the creditor is subject to the Financial Services Ombudsman Scheme for dealing with any complaints by the debtor'.


Mr Gerry Sutcliffe


Schedule     4,     page     69,     line     38,     at end insert—

    '(aa)   the definition of "costs";'.


Charles Hendry
Michael Fabricant


Clause     71,     page     54,     line     10,     at end insert—

    '(2A)   No such order shall be made by the Secretary of State, bringing into force sections 19 to 21, until advice and information has been published by the OFT under section 140D of the 1974 Act.'.


OFT's General Duties


Charles Hendry
Michael Fabricant


To move the following Clause:—

    'After section 1 of the 1974 Act insert—

    "1A   OFT's General Duties

    (1)   In discharging its functions under this Act to regulate the conduct of licensees, the OFT must, so far as is reasonably possible, act in a way—

(a) which is compatible with the regulatory objectives, as set out in subsection (2); and

(b) which the OFT considers most appropriate for the purpose of meeting those objectives.

    (2)   The regulatory objectives are—

(a) lender confidence, to ensure the widest possible access to credit;

(b) the protection of consumers; and

(c) the national interest in having an efficient and innovative consumer credit sector.

    (3)   In discharging its functions to issue guidance and regulate the conduct of licensees, the OFT shall have regard to—

(a) the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

(b) the desirability of facilitating innovation in connection with regulated activities;

(c) the desirability of maintaining a competitive market in consumer credit in the United Kingdom; and

(d) the need to minimise the adverse effects on competition that may arise from anything done in the discharge of its functions.".'.

OFT Guidance


Charles Hendry
Michael Fabricant


To move the following Clause:—

    'After section 183 of the 1974 Act insert—

    "183A    OFT Guidance

    (1)   No guidance is to be published under the 1974 Act without the approval of the Secretary of State.

    (2)   In preparing or revising guidance under that Act the OFT shall consult such persons as it thinks fit.".'.

Credit tokens


Charles Hendry
Michael Fabricant


To move the following Clause:—

    '(1)   It shall be 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 applicant by way of—

(a) a document signed by that person;

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

(c) an electronic form of communication, the origin of which can be authenticated.

    (3)   Any approach to a person offering a credit-token application must include a full statement of the legal liabilities and responsibilities associated with such a token.'.

Changes in credit limits


Charles Hendry
Michael Fabricant


To move the following Clause:—

    '(1)   It shall be the responsibility of a lender to ensure that any increase in a credit limit made on an unsolicited basis to a debtor is reasonable and affordable, before agreeing any such increases with a debtor.

    (2)   It shall be the responsibility of a lender to ensure that any increase in a credit limit has the written agreement of a debtor before any such increase is granted.

    (3)   Any lender who fails to meet the requirements set out in subsections (2) and (3) shall be subject to penalties to be determined by regulation.'.

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Prepared 28 Jun 2005