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Consumer Credit Bill


Consumer Credit Bill

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54      

Statement of policy in relation to civil penalties

After section 39B of the 1974 Act (inserted by section 53 of this Act) insert—

“39C    

Statement of policy in relation to civil penalties

(1)   

The OFT shall prepare and publish a statement of policy in relation to

how it exercises, or how it proposes to exercise, its powers under

5

section 39A.

(2)   

If the OFT revises the statement of policy at any time after it has been

published, the OFT shall publish it as revised.

(3)   

No statement of policy shall be published without the approval of the

Secretary of State.

10

(4)   

The statement of policy 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 affected by it.

(5)   

In preparing or revising the statement of policy the OFT shall consult

such persons as it thinks fit.

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(6)   

In determining whether and how to exercise its powers under section

39A in relation to a person’s failure, the OFT shall have regard to the

statement of policy as most recently published at the time the failure

occurred.

(7)   

The OFT shall not impose a penalty on a person under section 39A in

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relation to a failure occurring before it has published a statement of

policy.”

Appeals

55      

The Consumer Credit Appeals Tribunal

(1)   

After section 40 of the 1974 Act insert—

25

“Appeals

40A     

The Consumer Credit Appeals Tribunal

(1)   

There shall be a tribunal known as the Consumer Credit Appeals

Tribunal (‘the Tribunal’).

(2)   

The Tribunal shall have the functions conferred on it by or under this

30

Part.

(3)   

The Lord Chancellor may by rules make such provision as he thinks fit

for regulating the conduct and disposal of appeals before the Tribunal.

(4)   

Schedule A1 (which makes provision about the Tribunal and

proceedings before it) shall have effect.

35

(5)   

But that Schedule does not limit the Lord Chancellor’s powers under

subsection (3).”

(2)   

Before Schedule 1 to that Act insert the Schedule A1 set out in Schedule 1 to this

Act.

 
 

Consumer Credit Bill

47

 

56      

Appeals to the Consumer Credit Appeals Tribunal

(1)   

In subsection (1) of section 41 of the 1974 Act (appeals) for the words from

“prescribed period” onwards substitute “specified period, appeal to the

Tribunal”.

(2)   

After that subsection insert—

5

“(1A)   

The means for making an appeal is by sending the Tribunal a notice of

appeal.

(1B)   

The notice of appeal shall—

(a)   

be in the specified form;

(b)   

set out the grounds of appeal in the specified manner; and

10

(c)   

include the specified information and documents.

(1C)   

An appeal to the Tribunal is to be by way of a rehearing of the

determination appealed against.

(1D)   

In this section ‘specified’ means specified by rules under section

40A(3).”

15

(3)   

Subsections (2) to (5) of that section shall cease to have effect.

57      

Appeals from the Consumer Credit Appeals Tribunal

In Part 3 of the 1974 Act after section 41 insert—

“41A    

Appeals from the Consumer Credit Appeals Tribunal

(1)   

A party to an appeal to the Tribunal may with leave appeal—

20

(a)   

in England and Wales and Northern Ireland, to the Court of

Appeal, or

(b)   

in Scotland, to the Court of Session,

   

on a point of law arising from a decision of the Tribunal.

(2)   

For the purposes of subsection (1) leave to appeal may be given by—

25

(a)   

the Tribunal; or

(b)   

the Court of Appeal or the Court of Session.

(3)   

An application for leave to appeal may be made to the Court of Appeal

or the Court of Session only if the Tribunal has refused such leave.

(4)   

If on an appeal under this section the court considers that the decision

30

of the Tribunal was wrong in law, it may do one or more of the

following—

(a)   

quash or vary that decision;

(b)   

substitute for that decision a decision of its own;

(c)   

remit the matter to the Tribunal for rehearing and

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determination in accordance with the directions (if any) given

to it by the court.

(5)   

An appeal may be brought from a decision of the Court of Appeal

under this section only if leave to do so is given by the Court of Appeal

or the House of Lords.

40

 
 

Consumer Credit Bill

48

 

(6)   

Rules under section 40A(3) may make provision for regulating or

prescribing any matters incidental to or consequential on an appeal

under this section.

(7)   

In this section ‘party’ means, in relation to an appeal to the Tribunal,

the appellant or the OFT.”

5

58      

Consequential amendments relating to appeals

(1)   

In section 2(7) of the 1974 Act (restriction on power to give directions to OFT)

for “Secretary of State” substitute “the Tribunal”.

(2)   

In section 182 of that Act (regulations and orders) after subsection (1) insert—

“(1A)   

The power of the Lord Chancellor to make rules under section 40A(3)

10

shall be exercisable by statutory instrument subject to annulment in

pursuance of a resolution of either House of Parliament.”

(3)   

In subsection (2) of that section—

(a)   

after “orders” wherever occurring insert “or rules”;

(b)   

after “by the Secretary of State” insert “or by the Lord Chancellor”;

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(c)   

in paragraph (c) for “Secretary of State” substitute “person making

them”.

(4)   

In section 189(1) of that Act (definitions)—

(a)   

in the definition of “appeal period” for “Secretary of State” substitute

“Tribunal”;

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(b)   

after the definition of “total price” insert—

“‘the Tribunal’ means the Consumer Credit Appeals

Tribunal;”.

(5)   

In Schedule 1 to the Tribunals and Inquiries Act 1992 (c. 53) (tribunals under

supervision of Council of Tribunals) after paragraph 9A insert—

25

 

“Consumer credit

9B. The Consumer Credit

 
  

Appeals Tribunal established

 
  

by section 40A of the

 
  

Consumer Credit Act 1974.”

 

Ombudsman scheme

30

59      

Financial services ombudsman scheme to apply to consumer credit licensees

(1)   

After section 226 of the 2000 Act insert—

“226A   

Consumer credit jurisdiction

(1)   

A complaint which relates to an act or omission of a person (‘the

respondent’) is to be dealt with under the ombudsman scheme if the

35

conditions mentioned in subsection (2) are satisfied.

(2)   

The conditions are that—

(a)   

the complainant is eligible and wishes to have the complaint

dealt with under the scheme;

 
 

Consumer Credit Bill

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(b)   

the complaint falls within a description specified in consumer

credit rules;

(c)   

at the time of the act or omission the respondent was the

licensee under a standard licence or was authorised to carry on

an activity by virtue of section 34A of the Consumer Credit Act

5

1974;

(d)   

the act or omission occurred in the course of a business being

carried on by the respondent which was of a type mentioned in

subsection (3);

(e)   

at the time of the act or omission that type of business was

10

specified in an order made by the Secretary of State; and

(f)   

the complaint cannot be dealt with under the compulsory

jurisdiction.

(3)   

The types of business referred to in subsection (2)(d) are—

(a)   

a consumer credit business;

15

(b)   

a consumer hire business;

(c)   

a business so far as it comprises or relates to credit brokerage;

(d)   

a business so far as it comprises or relates to debt-adjusting;

(e)   

a business so far as it comprises or relates to debt-counselling;

(f)   

a business so far as it comprises or relates to debt-collecting;

20

(g)   

a business so far as it comprises or relates to debt

administration;

(h)   

a business so far as it comprises or relates to the provision of

credit information services;

(i)   

a business so far as it comprises or relates to the operation of a

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credit reference agency.

(4)   

A complainant is eligible if—

(a)   

he is—

(i)   

an individual; or

(ii)   

a surety in relation to a security provided to the

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respondent in connection with the business mentioned

in subsection (2)(d); and

(b)   

he falls within a class of person specified in consumer credit

rules.

(5)   

The approval of the Treasury is required for an order under subsection

35

(2)(e).

(6)   

The jurisdiction of the scheme which results from this section is

referred to in this Act as the ‘consumer credit jurisdiction’.

(7)   

In this Act ‘consumer credit rules’ means rules made by the scheme

operator with the approval of the Authority for the purposes of the

40

consumer credit jurisdiction.

(8)   

Consumer credit rules under this section may make different provision

for different cases.

(9)   

Expressions used in the Consumer Credit Act 1974 have the same

meaning in this section as they have in that Act.”

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(2)   

In Schedule 17 to that Act (the ombudsman scheme) after Part 3 insert the Part

3A set out in Schedule 2 to this Act.

 
 

 
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Revised 29 June 2005