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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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
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The Consumer Credit Appeals Tribunal
(1)
After section 40 of the 1974 Act insert—
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“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
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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.
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(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.

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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
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(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).”
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(3)
Subsections (2) to (5) of that section shall cease to have effect.
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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—
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(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
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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.
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(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.”
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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—
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“Consumer credit
9B. The Consumer Credit

Appeals Tribunal established

by section 40A of the

Consumer Credit Act 1974.”

Ombudsman scheme
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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
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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;

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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
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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;
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(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;
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(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
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(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
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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.