Appendix 1 S.I. 2004/1482: memorandum
from the Department of Trade and Industry
Consumer Credit (Agreements) (Amendment) Regulations
2004 (S.I. 2004/1482)
1. The Committee has requested a memorandum on the
following points:
(1) Explain why regulation 2(4) of the 1983 Regulations,
inserted by regulation 4, includes paragraph 14A of Schedule 1
in sub-paragraphs (c) and (d); and regulation 7(4), inserted by
regulation 9, includes paragraph 13A in sub-paragraphs (c) and
(d).
(2) In paragraph 4 of Schedule 2, inserted by
regulation 11, should "i.e." in Note ** read "e.g.",
or is the example given the only instance of where it would be
dangerous or could be in contravention of Health and Safety legislation
for the debtor to attempt to disconnect and return the goods himself?
(3) In paragraph 18 of that Schedule, should not
the first "£x****" read "£x***"?
2. Including paragraphs 14A and 13A in sub-paragraph
(c) of regulations 2(4) and 7(4) was an error, as they should
only appear in sub-paragraph (d). In earlier drafts sub-paragraph
(c) in regulation 2(4) had read "11-14 and 15-17" and
sub-paragraph (c) in regulation 7(4) had read "11-13 and
14-17". Whilst proof reading the instrument the references
were changed overlooking the fact that we were inserting new sub-paragraphs
13A and 14A into Schedule 1.
3. The Department apologises for this error and will
amend the instrument at the earliest opportunity and in any event
before the 31st May 2005 when the Regulations come into force.
4. The words in the second set of square brackets
in paragraph 4 of Schedule 2 and note ** were inserted into the
1983 Regulations by S.I. 1988/2047 including the term "i.e.".
5. In our view the words in the second set of square
brackets are only meant to be included in the warning where the
subject matter of the agreement is a liquefied petroleum gas vessel
of greater than 150 litres water capacity, making i.e. correct.
If this were not the case the words in the second set of square
brackets would be of very little help to the consumer as they
are vague and consumers would be unable to ascertain for themselves
whether it would be dangerous and in contravention of Health and
Safety legislation for them to disconnect the goods they had under
the agreement in question. Thus far we have been unable to substantiate
this view but are continuing to research into the point.
6. If any amendments are necessary we will make them
at the earliest opportunity and in any event by the 31st May 2005
when the Regulations come into force.
7. The Committee is correct that the first "£x****"
should in fact be "£x***". This appears to be a
typographical error for which the Department apologises. We will
amend the instrument at the earliest opportunity and in any event
before the 31st May 2005 when the Regulations come into force.
S.I. 2004/1482: supplementary
memorandum from the Department of Trade and Industry
1. In its letter of 13th July 2004 the Committee
has requested further information relating to paragraph 5 of the
Department's earlier memorandum. In particular the committee would
like to know the department's present intention regarding the
warning in paragraph 4 of Schedule 2 to the Consumer Credit (Agreements)
Regulations 1983.
2. Both Health and Safety Executive (HSE) and the
Department have conducted a search of old files but have been
unable to find anything in relation to the wording inserted into
the Agreements Regulations in 1988 which might have explained
its purpose at that time.
3. We have also consulted the HSE on the way forwards
as regards LPG vessels. It is HSE's belief that suitable safeguards
are in place both through their legislation and through guidance
by the LPG industry itself so that no reference to gas safety
need be contained in consumer credit legislation.
4. Accordingly, following consultation with the HSE,
the department has decided to remove the words in the second set
of square brackets, and the corresponding note, in paragraph 4
of Schedule 2 to the Consumer Credit (Agreements) Regulations
1983. The Department will arrange for the wording to be removed
from the Regulations by means of an amending SI as soon as possible.
The Department thanks the Committee for allowing us time to investigate
this issue.
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