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ensure
that ancillary pricing terms in personal financial services contracts
can |
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be assessed for fairness;
and for connected purposes. |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
Amendment
of the Unfair Terms in Consumer Contracts Regulations 1999 |
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(1) |
After regulation 6(1), insert— |
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“(1A) |
Paragraph (2) shall
not apply to a contract for the supply of personal |
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financial
services, including all such contracts currently in force.”. |
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(2) |
After regulation 6(2), insert— |
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“(3) |
In so far as it is
in plain intelligible language, the assessment of |
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fairness
of a term in a contract for the supply of personal financial |
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services
shall not relate— |
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(a) |
to the definition
of the main subject matter of the contract, or |
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(b) |
to the adequacy
of the main price or remuneration, as against |
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the
goods or services supplied in exchange. |
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(4) |
When assessing
whether a charge is or is not a main price or |
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remuneration
within the meaning of paragraph (3)(b), account shall |
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be
taken of all the relevant circumstances at the time the contract
was |
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concluded,
including whether the imposition of the charge is |
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contingent
on other uncertain events and whether the charge is likely |
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to
have been considered by the consumer prior to concluding the |
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(5) |
Where a term
of a contract for the supply of personal financial |
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services
provides for the charging of a consumer and the |
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circumstances
in which that charge can be imposed are not certain to |
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arise
during the term of the contract, then such price or remuneration
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shall
not fall within the main price or remuneration for the purposes
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25 |
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(6) |
In
any proceedings in which reliance is placed on this regulation,
a |
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charge
shall be assumed not to be the main price or remuneration, as
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against
the goods or services supplied in exchange, unless the |
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2 |
Short
title and commencement |
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(1) |
This Act may be cited as
the Financial Services (Unfair Terms in Consumer |
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(2) |
This Act comes into force
at the end of the period of two months beginning |
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with the day on which it
is passed. |
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