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Tuesday 12th July 2005

CONSIDERATION OF BILL

CONSUMER CREDIT BILL

NEW CLAUSES
Data sharing

Norman Lamb
Mr Alan Reid
Charles Hendry
Michael Fabricant

NC1
To move the following Clause:—
'After section 36F of the 1974 Act (inserted by section 50 of this Act) insert—
    "36G   Data Sharing
    (1)   In this section—
'authorised person' means a consumer credit business, or consumer hire business, or an ancillary credit business or any person acting on behalf of any such business.
'credit reference agency' means any person within the meaning of section 145(8) and who holds a licence in respect of such activities under Part III of this Act.
all reference to 'debtor' shall include a reference to hirer and all references to credit shall include a reference to hire.
    (2)   Any authorised person may, provided the conditions in subsection (3) below are satisfied, disclose to a credit reference agency, and the authorised person and credit reference agency may use, any information relating to the credit history or financial standing of any debtor of the authorised person, for the purposes referred to in subsection (4) below, notwithstanding any enactment or rule of law prohibiting or restricting the disclosure or use of, or authorising the withholding of, such information.
    (3)   The conditions referred to in subsection (2) above are that—

(a) the authorised person has notified the debtor that it may disclose the debtor's information under this section; and

(b) the debtor has not, within 28 days of the date of notification, informed the authorised person in writing that he objects to such disclosure of his information.

    (4)   For the purposes of subsection (2) above, the permitted purposes are—

(a) vetting applications for credit or applications that can result in the giving of credit or giving of any guarantee, indemnity, or assurance in relation to the giving of credit;

(b) verifying the identity of the debtor or any applicant for credit, for the purpose of or in connection with an application for credit, or for any other purpose relevant to the financial standing of the debtor, including the prevention of money laundering;

(c) managing credit accounts including debt tracing and recovery;

(d) preventing, detecting or apprehending crime, and for the enforcement of criminal law whether in England and Wales or elsewhere including the tracing and recovery of any sanctions imposed thereunder;

(e) statistical analysis of credit risk assessment in a case where no individual is referred to by name or necessary implication;

(f) any other purpose to which the debtor subsequently consents; and

(g) any other purpose specified in an Order made by the Secretary of State for the purpose of this subsection (4).

    (5)   In this section—
'application for credit' includes an application to refinance or reschedule an existing credit agreement;
'credit reference services' means the furnishing of persons with information relevant to financial standing of individuals, which is information collected by the person furnishing the purpose of so furnishing it.".'.

Access to information

Charles Hendry
Michael Fabricant

NC2
*To move the following Clause:—
    '(1)   Any notice served to a hirer or debtor under the provision of this Act shall be available in—

(a) formats suitable for persons who are blind or partially sighted, or

(b) languages other than English or Welsh.

    (2)   It shall be the responsibility of the hirer or debtor to request a notice in a format set out in subsection (1).'.

OFT's general duties

Charles Hendry
Michael Fabricant

NC3
*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 set out in subsection (2) below; 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 section.

    (3)   In discharging its functions to issue guidance and regulate the conduct of licensees the OFT must 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.".'.

Standardisation of interest rate calculations

Charles Hendry
Michael Fabricant

NC4
*To move the following Clause:—
    '(1)   The Secretary of State may, by regulations, provide for the standardisation of interest rate calculation for specified consumer credit agreements.
    (2)   In making regulations under subsection (1), the Secretary of State shall have regard to the methods of interest calculation current at that time.'.

Annual report

Charles Hendry
Michael Fabricant

NC5
*To move the following Clause:—
    '(1)   The OFT shall publish a report each year after the passing of this Act reviewing its duties as provided for under the 1974 Act, as amended by this Act.
    (2)   Reports made by the OFT under subsection (1) shall also review the work of any enforcement authorities, including local Trading Standards Services, who have acted on behalf of OFT as provided for under section 50.
    (3)   The Secretary of State shall take any report made by the OFT under subsection (1) into consideration when issuing regulations in relation to the 1974 Act, as amended by this Act.'.


Secretary Alan Johnson

7
*Page     8,     line     16     [Clause     9],     at end insert—
    '(9A)   If an agreement mentioned in subsection (9) was made before the beginning of the relevant period, only amounts resulting from failures by the debtor or hirer to make payments he is required to have made during that period shall be taken into account in determining any shortfall for the purposes of subsection (1)(c).
    (9B)   In subsection (9B) "relevant period" means the period of 20 weeks ending with the day on which the debtor or hirer is required to have made the most recent payment under the agreement.'.


Charles Hendry
Michael Fabricant

4
*Page     8,     line     20     [Clause     10],     at end add—
    '(11)   This section shall not apply if there is no prejudice to the interests of the debtor or hirer.'.


Charles Hendry
Michael Fabricant

5
*Page     14,     line     11     [Clause     19],     at end insert—
    '(2A)   In making a determination under this section, a court shall have regard to guidance published periodically by the OFT.
    (2B)   Guidance produced by the OFT under subsection (2A) shall be approved by the Secretary of State before publication.'.


Norman Lamb
Mr Alan Reid

1
Page     39,     line     22     [Clause     46],     at end add—
    '(7)   Nothing in this section shall authorise the disclosure of documents or information subject to legal privilege.'.


Norman Lamb
Mr Alan Reid

2
Page     41,     line     19     [Clause     48],     leave out 'includes a reference to' and insert 'means'.


Charles Hendry
Michael Fabricant

3
*Page     54,     line     33     [Clause     71],     at end insert—
    '(2A)   The Secretary of State shall not make an order under subsection (2) bringing into force sections 19 to 22 of this Act until advice and information has been published by the OFT in accordance with section 140D of the 1974 Act.'.


Charles Hendry
Michael Fabricant

6
*Page     64,     line     35     [Schedule     3],     at end insert—

'(6) This section shall only apply to credit agreements which will continue for two years or more beyond the end of the transitional period set out in subsection (4).'.

ORDER OF THE HOUSE [9th JUNE 2005]
That the following provisions shall apply to the Consumer Credit Bill:

Committal
    1.   The Bill shall be committed to a Standing Committee.

Proceedings in Standing Committee
    2.   Proceedings in the Standing Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 30th June 2005.
    3.   The Standing Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading
    4.   Proceedings on consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
    5.   Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
    6.   Standing Order No. 83B (Programming committees) shall not apply to proceedings on consideration and Third Reading.

Programming of other proceedings
    7.   Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.




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