1 Consumer Credit (Agreements)
(Amendment) Regulations 2004: defective drafting
Consumer Credit (Agreements) (Amendment) Regulations
2004 (S.I. 2004/1482)
1.1 The Committee draws the special attention
of both Houses to these Regulations on the ground that they are
defectively drafted.
1.2 These Regulations amend the Consumer Credit (Agreements)
Regulations 1983. Regulation 2(4) of the 1983 Regulations, substituted
by regulation 4, requires agreements to include: [(c)] under the
heading "Key Financial Information", the particulars
set out in paragraphs 11 to 17 of Schedule 1; and [(d)] under
the heading "Other Financial Information", the particulars
set out in paragraph 14A of that Schedule. Regulation 7(4)(c)
and (d), as substituted by regulation 9(3), similarly refer to
paragraphs 10 to 17 and paragraph 13A respectively. In the first
memorandum printed at Appendix 1, the Department of Trade and
Industry explains that the references to paragraphs 14A and 13A
should have appeared only in sub-paragraph (d).
1.3 Schedule 2, as substituted by regulation 11,
prescribes the form of statements of protection and remedies which
must be included in certain agreements. Form 4 deals with the
right to cancel, and includes the following words:
[However you may return the goods yourself.]**[You
are warned that it would be dangerous and could be in contravention
of Health and Safety legislation for you to attempt to disconnect
and return the goods yourself.]**
** Creditor or agent to include the words in the
first set of square brackets unless the words in the second set
of square brackets are applicable, i.e. in a case where the subject
matter of the agreement is a liquefied petroleum gas vessel of
greater than 150 litres water capacity.
1.4 The Committee asked the Department whether "i.e."
in the note should have read "e.g.", as it appeared
unlikely that a vessel of the type described would be the only
item which it might be dangerous for a consumer to disconnect
himself. It is apparent from the Department's second memorandum
that the wording of the 1983 Regulations had simply been repeated
without regard to its purpose or necessity. The Department proposes
to remove the words in the second set of square brackets and the
corresponding note, which it does not consider necessary.
1.5 The Department also acknowledges a typographical
error in form 18 in the new Schedule 2. It undertakes to correct
these errors as soon as possible. The Committee accordingly
reports regulations 2(4) and 7(4) of and Schedule 2 to the 1983
Regulations, as amended by this instrument, for defective drafting,
acknowledged by the Department.
