sc022806.5-11

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

S.C.D.
5

House of Commons

Tuesday 28th June 2005

Standing Committee Proceedings

Standing Committee D

Consumer Credit Bill

[Third Sitting]

Clauses 23 to 26 Agreed to.

Mr Gerry Sutcliffe

Agreed to  25

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.”.’.

Clause, as amended, Agreed to.

Clauses 28 and 29 Agreed to.

John Battle

Negatived on division  38

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


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

Clause Agreed to.

Mr Gerry Sutcliffe

Agreed to  26

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

S.C.D.  Standing Committee Proceedings: 28th June 2005
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Consumer Credit Bill, continued

‘( )
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.’.

Clause, as amended, Agreed to.

Clause 33 Agreed to.

Mr Gerry Sutcliffe

Agreed to  20

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

Mr Gerry Sutcliffe

Agreed to  21

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

Agreed to  22

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

Clause, as amended, Agreed to.

Clauses 35 to 37 Agreed to.

Charles Hendry

Michael Fabricant

Withdrawn  16

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—

S.C.D.  Standing Committee Proceedings: 28th June 2005
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Consumer Credit Bill, continued

(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.’.

Clause Agreed to.

Clauses 39 to 42 Agreed to.

Mr Gerry Sutcliffe

Agreed to  23

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’.

Clause, as amended, Agreed to.

Clauses 44 to 51 Agreed to.

Norman Lamb

Withdrawn  36

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

Withdrawn  37

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

Not called  35

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).’.

Clause Agreed to.

S.C.D.  Standing Committee Proceedings: 28th June 2005
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Consumer Credit Bill, continued

Clauses 53 to 55 Agreed to.

Mr Gerry Sutcliffe

Agreed to  28

Schedule  1,  page  57,  line  33,  after ‘limits’, insert ‘(including the period specified

for the purposes of section 41(1) of this Act)’.

Schedule, as amended, Agreed to.

Mr Gerry Sutcliffe

Agreed to  27

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’.

Clause, as amended, Agreed to.

Mr Gerry Sutcliffe

Agreed to  29

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.’.

Schedule, as amended, Agreed to.

Clauses 60 to 69 Agreed to.

Mr Gerry Sutcliffe

Agreed to  24

Schedule  3,  page  64,  line  7,  leave out ‘payable’ and insert ‘that are required to be

paid’.

Charles Hendry

Michael Fabricant

Not called  18

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’.

S.C.D.  Standing Committee Proceedings: 28th June 2005
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Consumer Credit Bill, continued

Schedule, as amended, Agreed to.

Clause 70 Agreed to.

Mr Gerry Sutcliffe

Agreed to  30

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

‘(aa)
the definition of “costs”;’.

Schedule, as amended, Agreed to.

Charles Hendry

Michael Fabricant

Not called  17

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.’.

Clause Agreed to.

New Clauses

OFT’s General Duties

Charles Hendry

Michael Fabricant

Withdrawn  NC1

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

S.C.D.  Standing Committee Proceedings: 28th June 2005
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Consumer Credit Bill, continued

(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

Withdrawn  NC2

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

Withdrawn  nc3

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

S.C.D.  Standing Committee Proceedings: 28th June 2005
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Consumer Credit Bill, continued

(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

Withdrawn  nc4

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.’.

Interest on debt resulting from government maladministration

Charles Hendry

Michael Fabricant

Not selected  nc5

To move the following Clause:—

‘(1)
Where a person can demonstrate that debt has been incurred as a direct

consequence of maladministration, mismanagement or incompetence by

Government departments, agencies or officers, all reasonable interest on such

debt shall be repayable by the Government.

(2)
The eligibility for the repayment of the interest specified in subsection (1) and the

amount of such interest to be paid shall be determined by the Parliamentary

Commissioner for Administration.’.

Land packaging agreements

Charles Hendry

Michael Fabricant

Not selected  nc6

To move the following Clause:—