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Prevention of Excessive Charges Bill


 

Prevention of Excessive Charges Bill

 

 
 

Contents

1   

Prevention of excessive charges or fees on consumers

2   

Short title, commencement and extent

 

Bill 89                                                                                                 

54/4

 
 

Prevention of Excessive Charges Bill

1

 

A

Bill

To

prevent excessive charges or fees from being levied on consumers; and for

connected purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

1       

Prevention of excessive charges or fees on consumers

(1)   

In any agreement regulated under the Consumer Credit Act 1974 (c. 39) or any

contract where one of the parties is a consumer it shall be unlawful to impose

a charge, fee or series of charges and fees for a consumer’s default or failure to

do something under that contract which is greater than 2.5 per cent of the

5

actual value of the default or failure.

(2)   

In any contract for the provision of banking services regulated under the

Consumer Credit Act 1974 where a consumer exceeds or attempts to exceed his

or her agreed overdraft limit or funds available, it shall be unlawful for the

provider of that contract to impose a charge, fee or series of charges or fees in

10

excess of 2.5 per cent of the actual value of the sum by which the consumer

exceeds or attempts to exceed his or her agreed overdraft limit or funds

available.

(3)   

In this Act “consumer” means any natural person who, in contracts covered by

this Act, is acting for purposes which are outside his or her other trade,

15

business or profession.

(4)   

Nothing in this Act shall be taken to affect any rule of law prohibiting

contractual penalty clauses.

2       

Short title, commencement and extent

(1)   

This Act may be cited as the Prevention of Excessive Charges Act 2009.

20

(2)   

This Act comes into force at the end of the period of 2 months beginning with

the day on which it is passed.

(3)   

This Act extends to England and Wales, Scotland and Northern Ireland.

 
   
 
 

 

 
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