OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974
Summary
Citizens Advice welcomes the new guidance, which we believe will be of use to consumers and their advisers as well as business. We believe that the guidance is excellent, particularly the statement in part 5 of the draft guidance that non-compliance with the requirement of the Act. Nevertheless, we believe that the OFT should provide further clarification in the guidance on the following issues:
25-09-2009
Summary
Citizens Advice welcomes the new guidance, which we believe will be of use to consumers and their advisers as well as business. We believe that the guidance is excellent, particularly the statement in part 5 of the draft guidance that non-compliance with the requirement of the Act. Nevertheless, we believe that the OFT should provide further clarification in the guidance on the following issues:
- A statement whether the issue of a default notice is considered to be enforcement
- A stronger ‘caveat’ in respect of the guidance on the affect of ‘if any’.
- The Guidance should state that it may be an unfair business practice for a creditor or owner not to have taken sufficient steps to ensure a properly executed agreement has been entered and that it is an unfair business practice not to ensure that a copy agreement is preserved or that sufficient information is available to reconstitute a true copy.
- Further guidance and greater clarity on what ‘documents referred to in executed agreements’ have to be provided, especially relating to insurance and warranties that are supplied along with credit and hire facilities.
- Further guidance, in due course, once the meaning of ‘enforcement’, and the effect of an agreement being unenforceable for non-compliance with ss77 – 79, has been before the courts.
Comment