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Consumer Credit Bill


Consumer Credit Bill
Schedule 3 — Transitional Provision and Savings

62

 

           

is evidence (or in Scotland sufficient evidence) of the facts stated in the

certificate.

      (2)  

The required statements are—

(a)   

that the rules were made by the scheme operator;

(b)   

that the copy is a true copy of the rules; and

5

(c)   

that on a specified date the rules were made available to the public

in accordance with paragraph 16E(4).

      (3)  

A certificate purporting to be signed as mentioned in sub-paragraph (1) is to

be taken to have been duly signed unless the contrary is shown.

Consultation

10

16G   (1)  

If the scheme operator proposes to make consumer credit rules, it must

publish a draft of the proposed rules in the way appearing to it to be best

calculated to bring the draft to the attention of the public.

      (2)  

The draft must be accompanied by—

(a)   

an explanation of the proposed rules; and

15

(b)   

a statement that representations about the proposals may be made to

the scheme operator within a specified time.

      (3)  

Before making any consumer credit rules, the scheme operator must have

regard to any representations made to it in accordance with sub-paragraph

(2)(b).

20

      (4)  

If consumer credit rules made by the scheme operator differ from the draft

published under sub-paragraph (1) in a way which the scheme operator

considers significant, the scheme operator must publish a statement of the

difference.

Schedule 3

25

Section 69

 

Transitional Provision and Savings

Interpretation

1     (1)  

Expressions used in the 1974 Act have the same meaning in this Schedule

(apart from paragraphs 14 to 16 and 26) as they have in that Act.

      (2)  

For the purposes of this Schedule an agreement becomes a completed

30

agreement once—

(a)   

there is no sum payable under the agreement; and

(b)   

there is no sum which will or may become so payable.

Statements to be provided in relation to regulated agreements

2     (1)  

Section 77A of the 1974 Act applies in relation to agreements whenever

35

made.

      (2)  

Section 77A shall have effect in relation to agreements made before the

commencement of section 6 of this Act as if the period mentioned in

 

 

Consumer Credit Bill
Schedule 3 — Transitional Provision and Savings

63

 

subsection (1)(a) were the period of one year beginning with the day of the

commencement of section 6.

3          

Regulations made under section 78(4A) of the 1974 Act may apply in relation

to agreements regardless of when they were made.

4     (1)  

Section 7(3) of this Act shall have effect in relation to agreements whenever

5

made.

      (2)  

A dispensing notice given under section 185(2) of the 1974 Act which is

operative immediately before the commencement of section 7(3)—

(a)   

shall, on the commencement of section 7(3), be treated as having

been given under section 185(2) as substituted by section 7(3); and

10

(b)   

shall continue to be operative accordingly.

Default under regulated agreements

5          

The OFT shall prepare, and give general notice of, the arrears information

sheet and the default information sheet required under section 86A of the

1974 Act as soon as practicable after the commencement of section 8 of this

15

Act.

6     (1)  

Section 86B of the 1974 Act applies in relation to agreements whenever

made.

      (2)  

In the application of section 86B in relation to an agreement made before the

commencement of section 9 of this Act, the conditions under subsection (1)

20

can be satisfied only if the two payments mentioned in paragraph (c) were

not required to have been made before the commencement of section 9.

      (3)  

In the case of an agreement within subsection (9) of section 86B, sub-

paragraph (2) has effect as if for “two” there were substituted “four”.

7     (1)  

Section 86C of the 1974 Act applies in relation to agreements whenever

25

made.

      (2)  

In the application of section 86C in relation to an agreement made before the

commencement of section 10 of this Act, the conditions mentioned in

subsection (1) can be satisfied only if the two payments mentioned in

paragraph (b) were not required to have been made before the

30

commencement of section 10.

8          

Section 86E of the 1974 Act applies in relation to agreements whenever made

but only as regards default sums which become payable after the

commencement of section 12 of this Act.

9     (1)  

Section 86F of the 1974 Act applies in relation to agreements whenever made

35

but only as regards default sums which become payable after the

commencement of section 13 of this Act.

      (2)  

Where section 86F applies in relation to an agreement made before the

commencement of section 13, the agreement shall have effect as if any right

of the creditor or owner to recover compound interest in connection with the

40

default sum in question at a particular rate were a right to recover simple

interest in that connection at that rate.

10         

Section 14 of this Act shall have effect in relation to any default notice served

after the commencement of that section, regardless of—

(a)   

when the breach of the agreement in question occurred; or

45

 

 

Consumer Credit Bill
Schedule 3 — Transitional Provision and Savings

64

 

(b)   

when that agreement was made.

11         

The repeal by this Act of—

(a)   

the words “(subject to subsections (3) and (4))” in subsection (1) of

section 127 of the 1974 Act,

(b)   

subsections (3) to (5) of that section, and

5

(c)   

the words “or 127(3)” in subsection (3) of section 185 of that Act,

           

has no effect in relation to improperly-executed agreements made before the

commencement of section 15 of this Act.

12         

A debtor or hirer under an agreement may make an application under

section 129(1)(ba) of the 1974 Act regardless of when that agreement was

10

made.

13         

Section 130A of the 1974 Act applies in relation to agreements whenever

made but only as regards sums that are required to be paid under judgments

given after the commencement of section 17 of this Act.

Unfair relationships

15

14    (1)  

The court may make an order under section 140B of the 1974 Act in

connection with a credit agreement made before the commencement of

section 20 of this Act but only—

(a)   

on an application of the kind mentioned in paragraph (a) of

subsection (2) of section 140B made at a time after the end of the

20

transitional period; or

(b)   

at the instance of the debtor or a surety in any proceedings of the

kind mentioned in paragraph (b) or (c) of that subsection which were

commenced at such a time.

      (2)  

But the court shall not make such an order in connection with such an

25

agreement so made if the agreement—

(a)   

became a completed agreement before the commencement of section

20; or

(b)   

becomes a completed agreement during the transitional period.

      (3)  

Expressions used in sections 140A to 140C of the 1974 Act have the same

30

meaning in this paragraph as they have in those sections.

      (4)  

In this paragraph “the transitional period” means the period of one year

beginning with the day of the commencement of section 20.

      (5)  

An order under section 69 of this Act may extend, or further extend, the

transitional period.

35

15    (1)  

The repeal by this Act of sections 137 to 140 of the 1974 Act shall not affect

the court’s power to reopen an existing agreement under those sections as

set out in this paragraph.

      (2)  

The court’s power to reopen an existing agreement which—

(a)   

became a completed agreement before the commencement of section

40

22(3) of this Act, or

(b)   

becomes a completed agreement during the transitional period,

           

is not affected at all.

      (3)  

The court may also reopen an existing agreement—

 

 

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Schedule 3 — Transitional Provision and Savings

65

 

(a)   

on an application of the kind mentioned in paragraph (a) of

subsection (1) of section 139 made at a time before the end of the

transitional period; or

(b)   

at the instance of the debtor or a surety in any proceedings of the

kind mentioned in paragraph (b) or (c) of that subsection which were

5

commenced at such a time.

      (4)  

Nothing in section 16A or 16B of the 1974 Act shall affect the application of

sections 137 to 140 (whether by virtue of this paragraph or otherwise).

      (5)  

The repeal or revocation by this Act of the following provisions has no effect

in relation to existing agreements so far as they may be reopened as set out

10

in this paragraph—

(a)   

section 16(7) of the 1974 Act;

(b)   

in section 143(b) of that Act, the words “, 139(1)(a)”;

(c)   

section 171(7) of that Act;

(d)   

in subsection (1) of section 181 of that Act, the words “139(5) and

15

(7),”;

(e)   

in subsection (2) of that section, the words “or 139(5) or (7)”;

(f)   

in section 61(6) of the Bankruptcy (Scotland) Act 1985 (c. 66), the

words from the beginning to “but”;

(g)   

in section 343(6) of the Insolvency Act 1986 (c. 45), the words from

20

the beginning to “But”;

(h)   

Article 316(6) of the Insolvency (Northern Ireland) Order 1989 (S.I.

1989/2405 (N.I. 19)).

      (6)  

Expressions used in sections 137 to 140 of the 1974 Act have the same

meaning in this paragraph as they have in those sections.

25

      (7)  

In this paragraph—

“existing agreement” means a credit agreement made before the

commencement of section 22(3) of this Act;

“the transitional period” means the period of one year beginning with

the day of the commencement of section 22(3).

30

      (8)  

An order under section 69 of this Act may extend, or further extend, the

transitional period.

16    (1)  

It is immaterial for the purposes of section 140C(4)(a) to (c) of the 1974 Act

when (as the case may be) a credit agreement or a linked transaction was

made or a security was provided.

35

      (2)  

In relation to an order made under section 140B of the 1974 Act during the

transitional period in connection with a credit agreement—

(a)   

references in subsection (1) of that section to any related agreement

shall not include references to a related agreement to which this sub-

paragraph applies;

40

(b)   

the reference to a security in paragraph (d) of that subsection shall

not include a reference to a security to which this sub-paragraph

applies;

           

and the order shall not under paragraph (g) of that subsection direct

accounts to be taken, or (in Scotland) an accounting to be made, between any

45

persons in relation to a related agreement to which this sub-paragraph

applies.

 

 

Consumer Credit Bill
Schedule 3 — Transitional Provision and Savings

66

 

      (3)  

Sub-paragraph (2) applies to a related agreement or a security if—

(a)   

it was made or provided before the commencement of section 21 of

this Act; and

(b)   

it ceased to have any operation before the order under section 140B

is made.

5

      (4)  

In relation to an order made under section 140B after the end of the

transitional period in connection with a credit agreement—

(a)   

references in subsection (1) of that section to any related agreement

shall not include references to a related agreement to which this sub-

paragraph applies;

10

(b)   

the reference to a security in paragraph (d) of that subsection shall

not include a reference to a security to which this sub-paragraph

applies;

           

and the order shall not under paragraph (g) of that subsection direct

accounts to be taken, or (in Scotland) an accounting to be made, between any

15

persons in relation to a related agreement to which this sub-paragraph

applies.

      (5)  

Sub-paragraph (4) applies to a related agreement or a security if—

(a)   

it was made or provided before the commencement of section 21;

and

20

(b)   

it ceased to have any operation before the end of the transitional

period.

      (6)  

Expressions used in sections 140A to 140C of the 1974 Act have the same

meanings in this paragraph as they have in those sections.

      (7)  

In this paragraph “the transitional period” means the period of one year

25

beginning with the day of the commencement of section 21.

      (8)  

An order under section 69 of this Act may extend, or further extend, the

transitional period.

17         

Section 1 of this Act shall have no effect for the purposes of section 140C(1)

of the 1974 Act in relation to agreements made before the commencement of

30

section 1.

Applications for licences and fitness to hold a licence etc.

18    (1)  

Section 6A of the 1974 Act shall not apply in relation to applications made

before the commencement of section 27 of this Act.

      (2)  

Section 6(2A) of the 1974 Act shall not apply in relation to applications so

35

made.

      (3)  

The repeal by this Act of the words “and must be accompanied by the

specified fee” in section 6(2) of the 1974 Act has no effect in relation to

applications so made.

19    (1)  

The OFT shall prepare and publish the guidance required by section 25A of

40

the 1974 Act as soon as practicable after the commencement of section 30 of

this Act.

      (2)  

The requirements of subsection (4) of section 25A may be satisfied in relation

to the preparation of that guidance by steps taken wholly or partly before the

commencement of section 30.

45

 

 

Consumer Credit Bill
Schedule 3 — Transitional Provision and Savings

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Further powers of OFT to regulate conduct of licensees etc.

20         

The cases in which the OFT may impose requirements under section 33A of

the 1974 Act include cases where the matter with which the OFT is

dissatisfied arose before the commencement of section 38 of this Act.

21         

The cases in which the OFT may impose requirements under section 33B of

5

the 1974 Act include cases where the matters giving rise to the OFT’s

dissatisfaction arose before the commencement of section 39 of this Act.

22    (1)  

The OFT shall prepare and publish the guidance required by section 33E of

the 1974 Act as soon as practicable after the commencement of section 42 of

this Act.

10

      (2)  

The requirements of subsection (4) of section 33E may be satisfied in relation

to the preparation of that guidance by steps taken wholly or partly before the

commencement of section 42.

Powers and duties in relation to information

23    (1)  

Section 44 of this Act has no effect in relation to applications made before the

15

commencement of that section.

      (2)  

Paragraph 12(6) of Schedule A1 to the 1974 Act does not apply in relation to

applications so made.

24         

A person is not required by section 36A of the 1974 Act to do anything in

relation to an application made by him before the commencement of section

20

45 of this Act.

Civil penalties

25    (1)  

The OFT shall prepare and publish the statement of policy required by

section 39C of the 1974 Act as soon as practicable after the commencement

of section 54 of this Act.

25

      (2)  

The requirements of subsection (5) of section 39C may be satisfied in relation

to the preparation of that statement of policy by steps taken wholly or partly

before the commencement of section 54.

Appeals

26    (1)  

A person who—

30

(a)   

immediately before the commencement of section 55 of this Act is a

member of a panel established under regulation 24 of the appeals

regulations, and

(b)   

at the time of his appointment to that panel fell within paragraph

(2)(a) of that regulation,

35

           

shall be treated as having been appointed to the panel of chairmen on the

day of the commencement of section 55.

      (2)  

A person who—

(a)   

immediately before the commencement of section 55 is a member of

a panel established under regulation 24 of the appeals regulations,

40

and

(b)   

is not to be treated as having been appointed to the panel of chairmen

in accordance with sub-paragraph (1),

 

 

Consumer Credit Bill
Schedule 4 — Repeals

68

 

           

shall be treated as having been appointed to the lay panel on the day of the

commencement of section 55.

      (3)  

A person who is to be treated as having been appointed to the panel of

chairmen or to the lay panel in accordance with this paragraph shall, subject

to paragraph 4(2) and (3) of Schedule A1 to the 1974 Act, hold office as a

5

member of the panel in question—

(a)   

for the remainder of the period for which he was appointed under

regulation 24 of the appeals regulations; and

(b)   

on the terms on which he was so appointed (except as to the renewal

of his appointment).

10

      (4)  

In this paragraph—

“appeals regulations” means the Consumer Credit Licensing (Appeals)

Regulations 1998 (S.I. 1998/1203);

“lay panel” and “panel of chairmen” have the same meanings as in

Schedule A1 to the 1974 Act.

15

27    (1)  

Neither—

(a)   

subsections (1) and (2) of section 56 of this Act, nor

(b)   

the repeal by this Act of subsections (2) to (5) of section 41 of the 1974

Act,

           

has effect in relation to determinations of the OFT made before the

20

commencement of section 56.

      (2)  

This Act, so far as it repeals section 11 of the Tribunals and Inquiries Act 1992

(c. 53), has no effect in relation to such determinations so made.

      (3)  

The repeal by this Act of paragraph 27(2) of Schedule 25 to the Enterprise Act

2002 (c. 40) has no effect in relation to such determinations so made.

25

28         

Neither subsection (1) nor (4)(a) of section 58 of this Act has effect in relation

to determinations of the OFT made before the commencement of that

section.

Ombudsman scheme

29         

Section 1 of this Act shall have no effect for the purposes of section

30

226A(4)(a) of the 2000 Act in relation to a complaint which relates to an act

or omission occurring before the commencement of section 1.

Schedule 4

Section 70

 

Repeals

 

Act or instrument

Extent of repeal

 

35

 

Consumer Credit Act 1974

In section 2(7), the words “or 150”.

 
 

(c. 39)

In section 6(2), the words “and must be

 
  

accompanied by the specified fee”.

 
  

Section 8(2).

 
  

In section 15, subsection (1)(c) and the “and”

 

40

  

immediately preceding it.

 
  

Section 16(7).

 
  

Section 22(9) and (10).

 
 

 

 
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