Consumer Credit Bill

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Consumer Credit Bill

Consumer Credit Bill
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Guidance on requirements
After section 33D of the 1974 Act (inserted by section 41 of this Act) insert—
“33E
Guidance on requirements
(1)
The OFT shall prepare and publish guidance in relation to how it
exercises, or how it proposes to exercise, its powers under sections 33A
5
to 33C.
(2)
If the OFT revises the guidance at any time after it has been published,
the OFT shall publish it as revised.
(3)
The guidance shall be published in such manner as the OFT thinks fit
for the purpose of bringing it to the attention of those likely to be
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affected by it.
(4)
In preparing or revising the guidance the OFT shall consult such
persons as it thinks fit.
(5)
In exercising its powers under sections 33A to 33C the OFT shall have
regard to the guidance as most recently published.”
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Consequential amendments relating to requirements
(1)
In section 35(1) of the 1974 Act (particulars to be kept in register maintained by
OFT) after paragraph (b) insert—
“(ba)
requirements imposed under section 33A or 33B which are in
effect or which have been in effect, with details of any variation
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of such a requirement;”.
(2)
In the Table in section 41 of that Act (appeals) after the entry relating to “refusal
to end suspension of licence in accordance with terms of application” insert the
following entry—

“Determination—
A person who falls within

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(a)
to impose a
section 33C(6) or (7) in

requirement under
relation to the requirement

section 33A or 33B;
unless the OFT was not

(b)
to refuse an
required to give a notice to

application under
him in relation to the

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section 33C(5) in
determination by virtue of

relation to a
section 33D(4).”

requirement

imposed under

either of those

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sections; or

(c)
to vary or revoke a

requirement so

imposed.

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Powers and duties in relation to information
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Provision of information etc. by applicants
(1)
In subsection (2) of section 6 of the 1974 Act (which contains provision relating
to applications)—
(a)
for “particulars” substitute “information and documents”;
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(b)
for “by” in the second place where it occurs substitute “or describe in a”.
(2)
For subsection (3) of that section substitute—
“(3)
Where the OFT receives an application, it may by notice to the applicant
at any time before the determination of the application require him to
provide such information or documents relevant to the application as
10
may be specified or described in the notice.”
(3)
After subsection (4) of that section insert—
“(5)
Subsection (6) applies where a general notice under subsection (2)
comes into effect—
(a)
after an application has been made; but
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(b)
before its determination.
(6)
The applicant shall, within such period as may be specified in the
general notice, provide the OFT with any information or document—
(a)
which he has not previously provided in relation to the
application by virtue of this section;
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(b)
which he would have been required to provide with his
application had it been made after the general notice came into
effect; and
(c)
which the general notice requires to be provided for the
purposes of this subsection.
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(7)
An applicant shall notify the OFT, giving details, if before his
application is determined—
(a)
any information or document provided by him in relation to the
application by virtue of this section is, to any extent, superseded
or otherwise affected by a change in circumstances; or
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(b)
he becomes aware of an error in or omission from any such
information or document.
(8)
A notification for the purposes of subsection (7) shall be given within
the period of 28 days beginning with the day on which (as the case may
be)—
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(a)
the information or document is superseded;
(b)
the change in circumstances occurs; or
(c)
the applicant becomes aware of the error or omission.
(9)
Subsection (7) does not require an applicant to notify the OFT about—
(a)
anything of which he is required to notify it under section 36; or
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(b)
an error in or omission from any information or document
which is a clerical error or omission not affecting the substance
of the information or document.”

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Duties to notify changes in information etc.
After section 36 of the 1974 Act insert—
“36A
Further duties to notify changes etc.
(1)
Subsections (2) to (4) apply where a general notice under section 6(2)
comes into effect.
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(2)
A person who is the licensee under a standard licence or who is the
original applicant for a group licence shall, in relation to each relevant
application which he has made and which was determined before the
general notice came into effect, provide the OFT with any information
or document—
10
(a)
which he would have been required to provide with the
application had the application been made after the general
notice came into effect; and
(b)
which the general notice requires to be provided for the
purposes of this subsection.
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(3)
Any such information or document shall be provided within such
period as may be specified in the general notice.
(4)
Subsection (2) does not require a person to provide any information or
document—
(a)
which he provided in relation to the application by virtue of
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section 6;
(b)
which he has previously provided in relation to the application
by virtue of this section; or
(c)
which he would have been required to provide in relation to the
application by virtue of subsection (5) but for subsection (6).
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(5)
A person who is the licensee under a standard licence or who is the
original applicant for a group licence shall, in relation to each relevant
application which he has made, notify the OFT giving details if, after
the application is determined, any information or document which
he—
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(a)
provided in relation to the application by virtue of section 6, or
(b)
has so provided by virtue of this section,

is, to any extent, superseded or otherwise affected by a change in
circumstances.
(6)
Subsection (5) does not require a person to notify the OFT about a
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matter unless it falls within a description of matters specified by the
OFT in a general notice.
(7)
A description may be specified for the purposes of subsection (6) only
if the OFT is satisfied that the matters which would fall within that
description are matters which would be relevant to the question of—
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(a)
whether, having regard to section 25(2), a person is a fit person
to carry on a business under a standard licence; or
(b)
whether the public interest is better served by a group licence
remaining in effect than by obliging the licensees under it to
apply separately for standard licences.
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(8)
A person who is the licensee under a standard licence or who is the
original applicant for a group licence shall, in relation to each relevant

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application which he has made, notify the OFT about every error or
omission—
(a)
in or from any information or document which he provided by
virtue of section 6, or which he has provided by virtue of this
section, in relation to the application; and
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(b)
of which he becomes aware after the determination of the
application.
(9)
A notification for the purposes of subsection (5) or (8) shall be given
within the period of 28 days beginning with the day on which (as the
case may be)—
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(a)
the information or document is superseded;
(b)
the change in circumstances occurs; or
(c)
the licensee or the original applicant becomes aware of the error
or omission.
(10)
This section does not require a person to notify the OFT about—
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(a)
anything of which he is required to notify it under section 36; or
(b)
an error in or omission from any information or document
which is a clerical error or omission not affecting the substance
of the information or document.
(11)
In this section ‘relevant application’ means, in relation to a person who
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is the licensee under a standard licence or who is the original applicant
for a group licence—
(a)
the original application for the licence; or
(b)
an application for its renewal or for its variation.”
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Power of OFT to require information generally
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After section 36A of the 1974 Act (inserted by section 45 of this Act) insert—
“36B
Power of OFT to require information generally
(1)
The OFT may by notice to a person require him—
(a)
to provide such information as may be specified or described in
the notice; or
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(b)
to produce such documents as may be so specified or described.
(2)
The notice shall set out the reasons why the OFT requires the
information or documents to be provided or produced.
(3)
The information or documents shall be provided or produced—
(a)
before the end of such reasonable period as may be specified in
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the notice; and
(b)
at such place as may be so specified.
(4)
A requirement may be imposed under subsection (1) on a person who
is—
(a)
the licensee under a standard licence, or
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(b)
the original applicant for a group licence,

only if the provision or production of the information or documents in
question is reasonably required for purposes connected with the OFT’s
functions under this Act.

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(5)
A requirement may be imposed under subsection (1) on any other
person only if—
(a)
an act or omission mentioned in subsection (6) has occurred or
the OFT has reason to suspect that such an act or omission has
occurred; and
5
(b)
the provision or production of the information or documents in
question is reasonably required for purposes connected with—
(i)
the taking by the OFT of steps under this Part as a
consequence; or
(ii)
its consideration of whether to take such steps as a
10
consequence.
(6)
Those acts or omissions are acts or omissions which—
(a)
cast doubt on whether, having regard to section 25(2), a person
is a fit person to carry on a business under a standard licence;
(b)
cast doubt on whether the public interest is better served by a
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group licence remaining in effect, or being issued, than by
obliging the persons who are licensees under it, or who would
be licensees under it, to apply separately for standard licences;
(c)
give rise, or are likely to give rise, to dissatisfaction for the
purposes of section 33A(1) or 33B(1); or
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(d)
constitute or give rise to a failure of the kind mentioned in
section 39A(1).”
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Power of OFT to require access to premises
After section 36B of the 1974 Act (inserted by section 46 of this Act) insert—
“36C
Power of OFT to require access to premises
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(1)
The OFT may by notice to a licensee under a licence require him to
secure that access to the premises specified or described in the notice is
given to an officer of an enforcement authority in order for the officer—
(a)
to observe the carrying on of a business under the licence by the
licensee; or
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(b)
to inspect such documents of the licensee relating to such a
business as are—
(i)
specified or described in the notice; and
(ii)
situated on the premises.
(2)
The notice shall set out the reasons why the access is required.
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(3)
The premises which may be specified or described in the notice—
(a)
include premises which are not premises of the licensee if they
are premises from which he carries on activities in connection
with the business in question; but
(b)
do not include premises which are used only as a dwelling.
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(4)
The licensee shall secure that the required access is given at such times
as the OFT reasonably requires.
(5)
The OFT shall give reasonable notice of those times.
(6)
Where an officer is given access to any premises by virtue of this
section, the licensee shall also secure that persons on the premises give
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the officer such assistance or information as he may reasonably require
in connection with his observation or inspection of documents (as the
case may be).
(7)
The assistance that may be required under subsection (6) includes
(amongst other things) the giving to the officer of an explanation of a
5
document which he is inspecting.
(8)
A requirement may be imposed under subsection (1) on a person who
is—
(a)
the licensee under a standard licence, or
(b)
the original applicant for a group licence,
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only if the observation or inspection in question is reasonably required
for purposes connected with the OFT’s functions under this Act.
(9)
A requirement may be imposed under subsection (1) on any other
person only if—
(a)
an act or omission mentioned in section 36B(6) has occurred or
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the OFT has reason to suspect that such an act or omission has
occurred; and
(b)
the observation or inspection in question is reasonably required
for purposes connected with—
(i)
the taking by the OFT of steps under this Part as a
20
consequence; or
(ii)
its consideration of whether to take such steps as a
consequence.
(10)
In this section—
(a)
references to a licensee under a licence include, in relation to a
25
group licence issued on application, references to the original
applicant; and
(b)
references to a business being carried on under a licence by a
licensee include, in relation to the original applicant for a group
licence, activities being carried on by him for the purpose of
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regulating or otherwise supervising (whether by virtue of an
enactment, an agreement or otherwise) licensees under that
licence in connection with their carrying on of businesses under
that licence.”
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Entry to premises under warrant
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After section 36C of the 1974 Act (inserted by section 47 of this Act) insert—
“36D
Entry to premises under warrant
(1)
A justice of the peace may issue a warrant under this section if satisfied
on information on oath given on behalf of the OFT that there are
reasonable grounds for believing that the following conditions are
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satisfied.
(2)
Those conditions are—
(a)
that there is on the premises specified in the warrant
information or documents in relation to which a requirement
could be imposed under section 36B; and
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(b)
that if such a requirement were to be imposed in relation to the
information or documents—
(i)
it would not be complied with; or
(ii)
the information or documents would be tampered with.
(3)
A warrant under this section shall authorise an officer of an
5
enforcement authority—
(a)
to enter the premises specified in the warrant;
(b)
to search the premises and to seize and detain any information
or documents appearing to be information or documents
specified in the warrant or information or documents of a
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description so specified;
(c)
to take any other steps which may appear to be reasonably
necessary for preserving such information or documents or
preventing interference with them; and
(d)
to use such force as may be reasonably necessary.
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(4)
An officer entering premises by virtue of this section may take such
persons and equipment with him as he thinks necessary.
(5)
In the application of this section to Scotland—
(a)
the reference to a justice of the peace includes a reference to a
sheriff;
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(b)
for ‘information on oath’ there is substituted ‘evidence on
oath’.
(6)
In the application of this section to Northern Ireland the reference to a
justice of the peace shall be construed as a reference to a lay magistrate.”
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Failure to comply with information requirement
25
After section 36D of the 1974 Act (inserted by section 48 of this Act) insert—
“36E
Failure to comply with information requirement
(1)
If on an application made by the OFT it appears to the court that a
person (the ‘information defaulter’) has failed to do something that he
was required to do by virtue of section 36B or 36C, the court may make
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an order under this section.
(2)
An order under this section may require the information defaulter—
(a)
to do the thing that it appears he failed to do within such period
as may be specified in the order;
(b)
otherwise to take such steps to remedy the consequences of the
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failure as may be so specified.
(3)
If the information defaulter is a body corporate, a partnership or an
unincorporated body of persons which is not a partnership, the order
may require any officer who is (wholly or partly) responsible for the
failure to meet such costs of the application as are specified in the order.
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(4)
In this section—
‘court’ means—
(a)
in England and Wales and Northern Ireland, the High
Court or the county court;
(b)
in Scotland, the Court of Session or the sheriff;
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