Consumer Credit Act changes 2006/2010

[Amethyst]

http://www.johnantell.co.uk/CCA1974.htm

[Amethyst]

Re: Consumer Credit Act 1974 - and 2006 amendments

http://www.berr.gov.uk/files/file14388.pdf

implementation 2010 - consultation underway

[Amethyst]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

The Consumer Credit (Agreements) Regulations 2010 No. 1014
In Force: February 1, 2011 in accordance with reg.1(2)


Statutory Instruments
2010 No. 1014

Consumer Credit
The Consumer Credit (Agreements) Regulations 2010

Made
28th March 2010

Laid before Parliament
30th March 2010

Coming into force in accordance with regulation 1(2)

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 60, 61(1)(a), 105(9), 114(1), 182(2) and 189(1) of the Consumer Credit Act 1974(1).


Citation, commencement and interpretation

1.—(1) These Regulations may be cited as the Consumer Credit (Agreements) Regulations 2010.
(2) These Regulations shall come into force —
(a) on 1st February 2011, or
(b) in relation to a regulated consumer credit agreement, on the date and at the time Parts 1 to 3 of the Consumer Credit (EU Directive) Regulations 2010(2) apply to such an agreement, being a date before 1st February 2011.
(3) In these Regulations, unless the context otherwise requires—
“the Act” means the Consumer Credit Act 1974;
“advance payment” includes any deposit and in relation to a regulated consumer credit agreement includes also any part-exchange allowance in respect of any goods agreed in antecedent negotiations to be taken by the creditor in part-exchange but does not include a repayment of credit or any insurance premium or any amount entering into the total charge for credit;
“the APR” means the annual percentage rate of charge for credit determined in accordance with Schedule 4 and the Total Charge for Credit Regulations;
“cash price” in relation to any goods, services, land or other things means the price or charge at which the goods, services, land or other things may be purchased by, or supplied to, the debtor for cash;
“contract of shortfall insurance” means anything in writing which contains or purports to contain some promise or assurance (however worded or presented) that if a sum payable under a contract of insurance against loss of or damage to goods is less than the amount necessary to defray—
(a)
any amount of credit provided to finance the purchase of those goods, and

(b)
any other amount included in the total charge for that credit,



to the extent that these remain unpaid at the date of the loss or damage, a sum up to but not exceeding that shortfall will be paid;
“credit intermediary” has the same meaning as in section 160A of the Act;
“distance contract” means any regulated agreement made under an organised distance sales or service provision scheme run by or on behalf of the creditor who, in any such case, for the purpose of the agreement makes exclusive use of one or more means of distance communication up to and including the time at which the agreement is made. For this purpose, “means of distance communication” means any means which, without the simultaneous physical presence of the creditor or a person acting on behalf of the creditor, and of the debtor, may be used for the making of a regulated agreement between the parties to that agreement;
“earlier agreement” means an earlier consumer credit agreement for the provision of credit;
“exempted agreement” means an agreement of the description specified in the Schedule to the Consumer Credit (Notices of Cancellation Rights) (Exemptions) Regulations 1983(3) in relation to which there are no charges forming part of the total charge for credit;
“the Information Regulations 2010” means the Consumer Credit (Disclosure of Information) Regulations 2010(4);
“lettering” includes figures and symbols;
“modified agreement” means an earlier agreement as varied or supplemented by a modifying agreement, which is treated as—
(a)
revoking the earlier agreement, and

(b)
containing provisions reproducing the combined effect of the two agreements;



“pawn agreement” means a regulated consumer credit agreement under which the creditor takes an article in pawn;
“pre-contract credit information” means the information required to be disclosed by regulation 3(4) of the Information Regulations 2010;
“total amount of credit” means the credit limit or the total sums made available under a consumer credit agreement;
“total amount payable” means the sum of the total charge for credit and the total amount of credit payable under the consumer credit agreement as well as any advance payment;
“total charge for credit” means the total charge for credit determined in accordance with Schedule 4 and the Total Charge for Credit Regulations;
“the Total Charge for Credit Regulations” means the Consumer Credit (Total Charge for Credit) Regulations 2010(5).
(4) References in these Regulations to a contract of insurance shall be read with—
(a) section 22 of the Financial Services and Markets Act 2000(6),
(b) any relevant order under that section, and
(c) Schedule 2 to that Act.
(5) In these Regulations—
(a) a reference to a repayment is a reference to—
(i) a repayment of the whole or any part of the credit,
(ii) a payment of the whole or any part of the total charge for credit, or
(iii) a combination of such repayments and payments.
(b) a reference to rate of interest is a reference to the interest rate expressed as a fixed or variable percentage applied on an annual basis to the amount of credit drawn down.
(6) In relation to a regulated consumer credit agreement secured on land and to which the Information Regulations 2010 do not apply, the definition of Total Charge for Credit Regulations) shall apply as if for the words “Consumer Credit (Total Charge for Credit) Regulations 2010” there were substituted “Consumer Credit (Total Charge for Credit) Regulations 1980”(7).
Agreements to which these regulations apply

2.—(1) These Regulations apply in respect of a regulated consumer credit agreement except as provided for in paragraphs (2) to (5).
(2) These Regulations do not apply to an agreement mentioned in paragraph (3) unless pre-contract credit information has been disclosed in compliance (or in purported compliance) with the Information Regulations 2010.
(3) The agreements referred to in paragraph (2) are—
(a) an agreement secured on land;
(b) an agreement under which the creditor provides the debtor with credit which exceeds £60,260;
(c) an agreement entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(4) Paragraph (2) and regulations 3 to 4 and 6 to 7 do not apply to an authorised non-business overdraft agreement or an authorised business overdraft agreement.
(5) Regulation 5 does not apply to a regulated consumer credit agreement which is also a distance contract unless the agreement is entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(6) Subsections (2) to (5) of section 16B of the Act (declaration by the debtor as to the purposes of the agreement) apply for the purposes of paragraphs (3)(c) and (5).
Form and content of regulated consumer credit agreements

3.—(1) Documents embodying a regulated consumer credit agreement shall contain the information set out in column 2 of Schedule 1 to these Regulations in so far as that information relates to the type of agreement referred to in column 1.
(2) The information specified in Schedule 1 shall be presented in a clear and concise manner.
(3) For the purposes of this regulation, the requirement for the information to be “clear” includes a requirement that the wording, apart from any signature, is to be easily legible and of a colour which is readily distinguishable from the background medium upon which the information is displayed.
(4) Documents embodying a regulated consumer credit agreement, other than an exempted agreement, shall contain statements of the protection and remedies available to debtors under the Act, in the Form numbered in column 1 of Schedule 2 to these Regulations and set out in column 3, in so far as those statements relate to the type of agreement referred to in column 2.
(5) Documents embodying a regulated consumer credit agreement shall contain details of any security provided in relation to the regulated agreement by the debtor.
(6) Paragraph (7) applies to documents embodying a debtor-creditor-supplier agreement falling within section 12(a) of the Act or a debtor-creditor agreement (in this paragraph and paragraph (7) referred to as “the principal agreement”) and also embodying, or containing the option of, a debtor-creditor-supplier agreement falling within section 12(b) of the Act (in this paragraph referred to as “the subsidiary agreement”) where the subsidiary agreement is to finance a premium under one or more of—
(a) a contract of insurance to provide a sum payable in the event of the death of a debtor or a debtor suffering one or more of the following—
(i) accident;
(ii) sickness;
(iii) unemployment,
at any time before the credit under the principal agreement and the subsidiary agreement has been repaid, where
(i) the sum payable does not exceed the amount sufficient to defray the sums payable to the creditor in respect of that credit and of the total charge for credit, and
(ii) the policy monies payable under the contract of insurance are to be used for a repayment under the principal agreement and the subsidiary agreement;
(b) a contract of shortfall insurance;
(c) a contract of insurance in so far as it relates to the guarantee of goods.
(7) Documents to which this regulation applies may contain instead of the headings specified in paragraph 1 of Schedule 1 to these Regulations and any applicable statements of protection and remedies available to debtors under the Act that would otherwise apply—
(a) a heading in so far as it relates to the principal agreement, and
(b) if applicable, statements of the protection and remedies available to debtors under the Act in so far as they relate to the principal agreement.
Signing of agreement

4.—(1) The information specified in paragraphs 5, 6, 7, 11 and 14 of Schedule 1 to these Regulations in relation to the type of regulated consumer credit agreement referred to in column 1 shall be “the prescribed terms” for the purposes of section 61(1)(a) of the Act (the terms which must be contained in a document if a regulated consumer credit agreement is not to be improperly executed).
(2) The document containing the prescribed terms of the regulated consumer credit agreement referred to in paragraph (1) shall contain a space indicated for the purpose of the debtor’s signature.
(3) The signature of the document shall be made in the following manner—
(a) by the debtor, or by or on behalf of the debtor in the case of a partnership or an unincorporated body of persons, in the space in the document indicated for the purpose and, subject to sub-paragraph (c), the date of the signature shall be inserted in the space in the document indicated for the purpose,
(b) by the creditor, or by a person on behalf of the creditor, and subject to sub-paragraph (c), the date of the signature shall be inserted in the document,
(c) except where the agreement is cancellable, the date on which the unexecuted agreement becomes an executed agreement may be inserted in the document and in such a case any other date specified in paragraphs (a) and (b) need not be inserted, and
(d) nothing in this regulation shall prohibit the inclusion in the said document, near to any such signature, of the signature by any witness.
(4) In Scotland any provision in paragraph (3) requiring the said document to be signed shall be complied with by a body corporate if the document is properly executed in accordance with the law of Scotland.
(5) Where an agreement is intended to be concluded by the use of electronic communication nothing in this regulation shall prohibit the inclusion in the document of information about the process or means of providing, communicating or verifying the signature to be made by the debtor.
Modifying agreements

5.—(1) These Regulations shall apply to a modifying agreement which varies or supplements an earlier agreement and which is, or is treated under section 82(3) of the Act as, a regulated agreement.
(2) Where an item of information required by regulation 3(1) or 8(1) is unchanged by the modifying agreement, the requirements of regulation 3(1) or 8(1) may be satisfied in relation to such item of information by a statement in the modifying agreement clearly indicating that the information in the earlier agreement remains unchanged.
(3) A statement referred to in paragraph (2) shall be contained in the document which is signed by the debtor.
(4) The information referred to in regulation 4(1) as prescribed terms for the purposes of section 61(1)(a) of the Act shall not be prescribed for the purposes of a modifying agreement if the information contained in the earlier agreement has not been varied or supplemented by the modifying agreement.
(5) For the purposes of Schedule 1 to these Regulations, in calculating—
(a) the amount of repayments of credit or of any capital outstanding under an earlier agreement,
(b) the total charge for credit (or any items included in it) in relation to the credit to be provided under the modified agreement, or
(c) the APR in relation to the modified agreement,
the relevant date shall be determined by reference to the date of the modifying agreement.
Pawn agreements

6. Where a pawn-receipt is given under section 114(1) of the Act by a person who takes any article in pawn under a regulated consumer credit agreement (or a modifying agreement varying or supplementing an earlier credit agreement which is, or is treated under section 82(3) of the Act as, a regulated consumer credit agreement) and where the pawn-receipt is not separate from any document embodying such an agreement, it shall contain—
(a) the information set out in paragraphs 1, 2 and 22 of Schedule 1 to these Regulations, and
(b) a notice in the form contained in Schedule 3 to these Regulations.
Statutory Forms

7.—(1) The wording of any Form specified in Schedules 2 and 3 to these Regulations shall be reproduced in documents embodying regulated consumer credit agreements where applicable without any alteration, except that—
(a) the words “the creditor” may be replaced by the name of the creditor, by the expression by which the creditor is referred to in the agreement or by an appropriate pronoun, and any consequential changes to pronouns and verbs or other consequential grammatical changes may be made,
(b) the word “DEBTOR” may be replaced by “BORROWER” or “CUSTOMER” and the word “Debtor(s)” may be replaced by “Borrower(s)” or “Customer(s)”, and
(c) every Form shall be completed in accordance with any note.
(2) Any such note shall not be treated as part of any Form specified in the said Schedules and may be reproduced in addition to any such Form.
(3) Where any such note requires any words to be omitted, those words shall be omitted or deleted.
(4) Where words are shown in capital letters in any Form specified in Schedule 2 or 3 to these Regulations, and are reproduced in documents embodying regulated consumer credit agreements, they shall be afforded more prominence (whether by capital letters, underlining, larger or bold print or otherwise) than any other lettering in that Form except lettering inserted in accordance with paragraph 1(c) and no less prominence than that given to any other information in the document apart from the heading to the document, trade names, names of parties to the agreement or lettering in the document inserted in handwriting.
Form and content of an authorised overdraft agreement

8.—(1) Subject to paragraph (3), in the case of an authorised non-business overdraft agreement or an authorised business overdraft agreement, the following information shall be specified in writing in a clear and concise manner—
(a) the type of credit,
(b) the identities and geographical addresses of the creditor, debtor and, where relevant, of any credit intermediary involved,
(c) the duration of the agreement,
(d) the credit limit and the conditions governing its drawdown,
(e) the rate of interest charged, any conditions applicable to that rate, any reference rate on which that rate is based and any information on changes to the rate of interest (including the periods that the rate applies, and any conditions or procedure applicable to changing the rate),
(f) where different rates of interest are charged in different circumstances the creditor must provide the information in paragraph (e) in respect of each rate,
(g) the total charge for credit, calculated at the time the agreement is made, mentioning all the assumptions used in order to calculate it,
(h) an indication that the debtor may be requested to repay the amount of credit in full on demand at any time, and
(i) the charges payable by the debtor under the agreement (and the conditions under which those charges may be varied).
(2) For the purposes of paragraph (1), the requirement for the information to be “clear” includes a requirement that the wording is easily legible and of a colour which is readily distinguishable from the background medium upon which the information is displayed.
(3) Paragraph (1)(g) shall not apply—
(a) in the case of an authorised business overdraft agreement, or
(b) in the case of an authorised non-business overdraft agreement that is also an agreement secured on land.
Kevin Brennan
Minister for Further Education, Skills, Apprenticeships and Consumer Affairs
Department for Business Innovation & Skills
28th March 2010

[Vauxhall Girl]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

Amethyst, I am always being quoted the CCA 1974,

The Consumer Credit Act 1974 gives 'good title' to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement. This means that the finance company is not entitled to repossess the car from you.

But what section can this be found in? Be grateful if you could help with this.

[shamen]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

Sticking with that solicitor then Vauxhall girl? Ah well, if I cant sway your mind at least I can help. The relevant section is section 192 of the 1974 Act which implements schedule 4. Look in part one of Schedule 4, section 22 and you will see that section 27 of the 1974 act is amended to include:

2) Where the disposition referred to in subsection (1)
above is to a private purchaser, and he is a purchaser of
the motor vehicle in good faith without notice of the
hire-purchase or conditional sale agreement (the " relevant
agreement ") that disposition shall have effect as if the
creditor's title to the vehicle has been vested in the
debtor immediately before that disposition.

So technically its section 27 of the 1974 act, but only when section 192 invokes Part 1, section 22 of Schedule 4.

[Vauxhall Girl]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

Thank you for looking that up for me, Shamen.

Yes, I have to stick with solicitors, as they were given to me by my car insurance (the legal side of the policy). They haven't come across this particular sort of situation, but I am assured that they can sort this for me.

Fingers crossed.

[EXC]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

Article by Optima Legal on the impact on lenders of the amendments to the Consumer Credit Act which come onto force in February next year Optima Legal - New Consumer Credit Regulations will have far reaching implications for lenders

[pompeyfaith]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

oh optima legal the top 100 law firm that has outstanding practices hik hik
------------------------------- merged -------------------------------
http://www.thelawyer.com/optima-repr...005255.article

http://www.thelawyer.com/the-optima-...005296.article

http://www.thelawyer.com/optima-law-...005272.article

[jumper999]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

Do the TCC regulations apply to only regulated agreements?

[Guest]

Re: Consumer Credit Act 1974 - and 2006 amendments - s010 SI's(in force feb '11)

Do the TCC regulations apply to only regulated agreements?

Yes

The TCC regulations are made under section20 of the act and apply only to it

Peter