7 Assessment of the draft Order
34. The proposals in the draft Order arise from
inadequate assessment of the impact of amendments to the Consumer
Credit Act 1974 made by the Consumer Credit Act 2006. Since the
issue of minimising regulatory burdens has been high on the political
agenda for some time, it is regrettable that this situation has
arisen in connection with such recent legislation. It seems to
us that the reasons behind the 'corrective' measures under consideration
should have been spotted during the passage of the 2006 Act in
at least two of the three cases.
35. Having said that, we believe under the circumstances
that the proposals in the draft Order are appropriate and necessary
and, in themselves, suited to the legislative reform order process.
As the Explanatory Document says:
"The proposals [are] corrective measures which
aim to achieve the original policy intentions behind these provisions.
They are relatively minor and straight forward technical changes
to the 1974 Act which clarify the position and will be of benefit
to both industry and consumers".[25]
25 ED, p9, para33. Back
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