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27

 
 

House of Commons

 
 

Thursday 14th July 2005

 

Report Stage Proceedings

 

Consumer Credit Bill


 

New Clauses

 

Data sharing

 

Norman Lamb

 

Mr Alan Reid

 

Charles Hendry

 

Michael Fabricant

 

Negatived on division  nc1

 

To move the following Clause:—

 

‘After section 36F of the 1974 Act (inserted by section 50 of this Act) insert—

 

“36G  

Data Sharing

 

(1)    

In this section—

 


 

‘authorised person’ means a consumer credit business, or consumer hire

 

business, or an ancillary credit business or any person acting on behalf of

 

any such business.

 


 

‘credit reference agency’ means any person within the meaning of

 

section 145(8) and who holds a licence in respect of such activities under

 

Part III of this Act.

 


 

all reference to ‘debtor’ shall include a reference to hirer and all

 

references to credit shall include a reference to hire.

 

(2)    

Any authorised person may, provided the conditions in subsection (3)

 

below are satisfied, disclose to a credit reference agency, and the

 

authorised person and credit reference agency may use, any information

 

relating to the credit history or financial standing of any debtor of the

 

authorised person, for the purposes referred to in subsection (4) below,

 

notwithstanding any enactment or rule of law prohibiting or restricting

 

the disclosure or use of, or authorising the withholding of, such

 

information.

 

(3)    

The conditions referred to in subsection (2) above are that—

 

(a)    

the authorised person has notified the debtor that it may disclose

 

the debtor’s information under this section; and


 
 

Report Stage Proceedings: 14th July 2005                

28

 

Consumer Credit Bill, continued

 
 

(b)    

the debtor has not, within 28 days of the date of notification,

 

informed the authorised person in writing that he objects to such

 

disclosure of his information.

 

(4)    

For the purposes of subsection (2) above, the permitted purposes are—

 

(a)    

vetting applications for credit or applications that can result in

 

the giving of credit or giving of any guarantee, indemnity, or

 

assurance in relation to the giving of credit;

 

(b)    

verifying the identity of the debtor or any applicant for credit, for

 

the purpose of or in connection with an application for credit, or

 

for any other purpose relevant to the financial standing of the

 

debtor, including the prevention of money laundering;

 

(c)    

managing credit accounts including debt tracing and recovery;

 

(d)    

preventing, detecting or apprehending crime, and for the

 

enforcement of criminal law whether in England and Wales or

 

elsewhere including the tracing and recovery of any sanctions

 

imposed thereunder;

 

(e)    

statistical analysis of credit risk assessment in a case where no

 

individual is referred to by name or necessary implication;

 

(f)    

any other purpose to which the debtor subsequently consents;

 

and

 

(g)    

any other purpose specified in an Order made by the Secretary of

 

State for the purpose of this subsection (4).

 

(5)    

In this section—

 


 

‘application for credit’ includes an application to refinance or reschedule

 

an existing credit agreement;

 


 

‘credit reference services’ means the furnishing of persons with

 

information relevant to financial standing of individuals, which is

 

information collected by the person furnishing the purpose of so

 

furnishing it.”.’.

 


 

Access to information

 

Charles Hendry

 

Michael Fabricant

 

Withdrawn  NC2

 

To move the following Clause:—

 

‘(1)    

Any notice served to a hirer or debtor under the provision of the 1974 Act shall

 

be available in—

 

(a)    

formats suitable for persons who are blind or partially sighted, or

 

(b)    

languages other than English or Welsh.

 

(2)    

It shall be the responsibility of the hirer or debtor to request a notice in a format

 

as set out in subsection (1).’.

 



 
 

Report Stage Proceedings: 14th July 2005                

29

 

Consumer Credit Bill, continued

 
 

OFT’s general duties

 

Charles Hendry

 

Michael Fabricant

 

Withdrawn  NC3

 

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 set out in

 

subsection (2) below; 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

 

(c)    

the national interest in having an efficient and innovative

 

consumer credit section.

 

(3)    

In discharging its functions to issue guidance and regulate the conduct of

 

licensees the OFT must 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.”.’.

 


 

Standardisation of interest rate calculations

 

Charles Hendry

 

Michael Fabricant

 

Not selected  NC4

 

To move the following Clause:—

 

‘(1)    

The Secretary of State may, by regulations, provide for the standardisation of

 

interest rate calculation for specified consumer credit agreements.


 
 

Report Stage Proceedings: 14th July 2005                

30

 

Consumer Credit Bill, continued

 
 

(2)    

In making regulations under subsection (1), the Secretary of State shall have

 

regard to the methods of interest calculation current at that time.’.

 


 

Annual report

 

Charles Hendry

 

Michael Fabricant

 

Not called  NC5

 

To move the following Clause:—

 

‘(1)    

The OFT shall publish a report each year after the passing of this Act reviewing

 

its duties as provided for under the 1974 Act, as amended by this Act.

 

(2)    

Reports made by the OFT under subsection (1) shall also review the work of any

 

enforcement authorities, including local Trading Standards Services, who have

 

acted on behalf of OFT as provided for under section 50.

 

(3)    

The Secretary of State shall take any report made by the OFT under subsection

 

(1) into consideration when issuing regulations in relation to the 1974 Act, as

 

amended by this Act.’.

 


 

Secretary Alan Johnson

 

Agreed to  7

 

Page  8,  line  16  [Clause  9],  at end insert—

 

‘(9A)    

If an agreement mentioned in subsection (9) was made before the beginning of

 

the relevant period, only amounts resulting from failures by the debtor or hirer to

 

make payments he is required to have made during that period shall be taken into

 

account in determining any shortfall for the purposes of subsection (1)(c).

 

(9B)    

In subsection (9A) “relevant period” means the period of 20 weeks ending with

 

the day on which the debtor or hirer is required to have made the most recent

 

payment under the agreement.’.

 


 

Charles Hendry

 

Michael Fabricant

 

Not called  4

 

Page  8,  line  20  [Clause  9],  at end add—

 

‘(11)    

This section shall not apply if there is no prejudice to the interests of the debtor

 

or hirer.’.

 



 
 

Report Stage Proceedings: 14th July 2005                

31

 

Consumer Credit Bill, continued

 
 

Charles Hendry

 

Michael Fabricant

 

Withdrawn  5

 

Page  14,  line  11  [Clause  19],  at end insert—

 

‘(2A)    

In making a determination under this section, a court shall have regard to

 

guidance published periodically by the OFT.

 

(2B)    

Guidance produced by the OFT under subsection (2A) shall be approved by the

 

Secretary of State before publication.’.

 


 

Norman Lamb

 

Mr Alan Reid

 

Not selected  1

 

Page  39,  line  22  [Clause  46],  at end add—

 

‘(7)    

Nothing in this section shall authorise the disclosure of documents or information

 

subject to legal privilege.’.

 


 

Norman Lamb

 

Mr Alan Reid

 

Withdrawn  2

 

Page  41,  line  19  [Clause  48],  leave out ‘includes a reference to’ and insert ‘means’.

 


 

Charles Hendry

 

Michael Fabricant

 

Not called  3

 

Page  54,  line  33  [Clause  71],  at end insert—

 

‘(2A)    

The Secretary of State shall not make an order under subsection (2) bringing into

 

force sections 19 to 21 of this Act until advice and information has been published

 

by the OFT in accordance with section 140D of the 1974 Act.’.

 



 
 

Report Stage Proceedings: 14th July 2005                

32

 

Consumer Credit Bill, continued

 
 

Charles Hendry

 

Michael Fabricant

 

Not called  6

 

Page  64,  line  35  [Schedule  3],  at end insert—

 

    ‘(6)    

This paragraph shall only apply to credit agreements which will continue

 

for two years or more beyond the end of the transitional period set out in

 

subsection (4).’.

 

Bill read the third time, and passed.

 


 
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