1 Introduction
1. The draft Legislative Reform (Consumer Credit)
Order 2008 and the accompanying Explanatory Document (ED) were
laid before Parliament by the Department for Business, Enterprise
and Regulatory Reform on 17 June 2008 under section 14(1) of the
Legislative and Regulatory Reform Act 2006 (LRRA).
2. The purpose of the draft Order is to rectify
distortions introduced into the Consumer Credit Act 1974 by the
Consumer Credit Act 2006 and thereby exempt buy-to-let lending
from regulation[1] in accordance
with Government policy on mortgages, clarify the position on the
giving of statements for fixed sum credit agreements and provide
definitions of 'payments' for the purpose of issuing notices of
sums in arrears. By doing this, the draft Order would remove burdens
in terms of the financial costs which would arise if the proposed
amendments were not made. The draft Order therefore aims to comply
with section 1(2)[2] and
section 1(3)[3] of the
LRRA. Section 1 of the LRRA introduced power to remove or reduce
burdens.
1 For a definition of 'regulated' and 'unregulated'
loans see Q1 of the Appendix, p14. Back
2
Provisions may be made whose 'purpose is removing or reducing
any burden, or the overall burdens, resulting directly or indirectly
for any person from any legislation'. Back
3
Which amongst other things defines 'burden' as a 'financial cost'. Back
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