mopdf.com

Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)5(8) This section does not apply in relation to a non-commercial agreement or to asmall agreement.”Commencement InformationI7I87S. 6 in force at 16.6.2006 for specified purposes by S.I. 2006/1508, art. 3(1), Sch. 1S. 6 in force at 1.10.2008 in so far as not already in force by S.I. 2007/3300, art. 3(3), Sch. 3Further provision relating to statements(1) In section 78 of the 1974 Act (duty to give information to debtor under runningaccount credit agreement) after subsection (4) insert—“(4A) Regulations may require a statement under subsection (4) to contain alsoinformation in the prescribed terms about the consequences of the debtor—(a) failing to make payments as required by the agreement; or(b) only making payments of a prescribed description in prescribedcircumstances.”(2) In subsection (7) of that section for “(4) and (5)” substitute “ (4) to (5) ”.(3) In section 185 of that Act (agreement with more than one debtor or hirer) forsubsection (2) substitute—“(2) Notwithstanding subsection (1)(a), where credit is provided under anagreement to two or more debtors jointly, in performing his duties—(a) in the case of fixed-sum credit, under section 77A, or(b) in the case of running-account credit, under section 78(4),the creditor need not give statements to any debtor who has signed and givento him a notice (a ‘dispensing notice’) authorising him not to comply in thedebtor's case with section 77A or (as the case may be) 78(4).(2A) A dispensing notice given by a debtor is operative from when it is given tothe creditor until it is revoked by a further notice given to the creditor by thedebtor.(2B) But subsection (2) does not apply if (apart from this subsection) dispensingnotices would be operative in relation to all of the debtors to whom the creditis provided.(2C) Any dispensing notices operative in relation to an agreement shall cease tohave effect if any of the debtors dies.(2D) A dispensing notice which is operative in relation to an agreement shall beoperative also in relation to any subsequent agreement which, in relation tothe earlier agreement, is a modifying agreement.”Commencement InformationI9I10S. 7(1)(2) in force at 16.6.2006 by S.I. 2006/1508, art. 3(1), Sch. 1S. 7(3) in force at 1.10.2008 by S.I. 2007/3300, art. 3(3), Sch. 3

6Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)Default under regulated agreements8OFT to prepare information sheets on arrears and defaultAt the beginning of Part 7 of the 1974 Act insert—“Information sheets86AOFT to prepare information sheets on arrears and default(1) The OFT shall prepare, and give general notice of, an arrears information sheetand a default information sheet.(2) The arrears information sheet shall include information to help debtors andhirers who receive notices under section 86B or 86C.(3) The default information sheet shall include information to help debtors andhirers who receive default notices.(4) Regulations may make provision about the information to be included in aninformation sheet.(5) An information sheet takes effect for the purposes of this Part at the end of theperiod of three months beginning with the day on which general notice of itis given.(6) If the OFT revises an information sheet after general notice of it has been given,it shall give general notice of the information sheet as revised.(7) A revised information sheet takes effect for the purposes of this Part at the endof the period of three months beginning with the day on which general noticeof it is given.”Commencement InformationI119S. 8 in force at 31.1.2007 by S.I. 2007/123, art. 3(1), Sch. 1Notice of sums in arrears under fixed-sum credit agreements etc.After section 86A of the 1974 Act (inserted by section 8 of this Act) insert—“Sums in arrears and default sums86B Notice of sums in arrears under fixed-sum credit agreements etc.(1) This section applies where at any time the following conditions are satisfied—(a) that the debtor or hirer under an applicable agreement is required tohave made at least two payments under the agreement before that time;(b) that the total sum paid under the agreement by him is less than the totalsum which he is required to have paid before that time;(c) that the amount of the shortfall is no less than the sum of the last twopayments which he is required to have made before that time;

Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)(d)(e)7that the creditor or owner is not already under a duty to give him noticesunder this section in relation to the agreement; andif a judgment has been given in relation to the agreement before thattime, that there is no sum still to be paid under the judgment by thedebtor or hirer.(2) The creditor or owner—(a) shall, within the period of 14 days beginning with the day on which theconditions mentioned in subsection (1) are satisfied, give the debtor orhirer a notice under this section; and(b) after the giving of that notice, shall give him further notices under thissection at intervals of not more than six months.(3) The duty of the creditor or owner to give the debtor or hirer notices under thissection shall cease when either of the conditions mentioned in subsection (4) issatisfied; but if either of those conditions is satisfied before the notice requiredby subsection (2)(a) is given, the duty shall not cease until that notice is given.(4) The conditions referred to in subsection (3) are—(a) that the debtor or hirer ceases to be in arrears;(b) that a judgment is given in relation to the agreement under which a sumis required to be paid by the debtor or hirer.(5) For the purposes of subsection (4)(a) the debtor or hirer ceases to be in arrearswhen—(a) no sum, which he has ever failed to pay under the agreement whenrequired, is still owing;(b) no default sum, which has ever become payable under the agreement inconnection with his failure to pay any sum under the agreement whenrequired, is still owing;(c) no sum of interest, which has ever become payable under the agreementin connection with such a default sum, is still owing; and(d) no other sum of interest, which has ever become payable under theagreement in connection with his failure to pay any sum under theagreement when required, is still owing.(6) A notice under this section shall include a copy of the current arrearsinformation sheet under section 86A.(7) The debtor or hirer shall have no liability to pay any sum in connection withthe preparation or the giving to him of a notice under this section.(8) Regulations may make provision about the form and content of notices underthis section.(9) In the case of an applicable agreement under which the debtor or hirer mustmake all payments he is required to make at intervals of one week or less, thissection shall have effect as if in subsection (1)(a) and (c) for ‘two’ there weresubstituted ‘four’.(10) If an agreement mentioned in subsection (9) was made before the beginning ofthe relevant period, only amounts resulting from failures by the debtor or hirerto make payments he is required to have made during that period shall be takeninto account in determining any shortfall for the purposes of subsection (1)(c).

8Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)(11) In subsection (10) ‘relevant period’ means the period of 20 weeks ending withthe day on which the debtor or hirer is required to have made the most recentpayment under the agreement.(12) In this section ‘applicable agreement’ means an agreement which—(a) is a regulated agreement for fixed-sum credit or a regulated consumerhire agreement; and(b) is neither a non-commercial agreement nor a small agreement.”Commencement InformationI12I1310S. 9 in force at 16.6.2006 for specified purposes by S.I. 2006/1508, art. 3(1), Sch. 1S. 9 in force at 1.10.2008 in so far as not already in force by S.I. 2007/3300, art. 3(3), Sch. 3Notice of sums in arrears under running-account credit agreementsAfter section 86B of the 1974 Act (inserted by section 9 of this Act) insert—“86C Notice of sums in arrears under running-account credit agreements(1) This section applies where at any time the following conditions are satisfied—(a) that the debtor under an applicable agreement is required to have madeat least two payments under the agreement before that time;(b) that the last two payments which he is required to have made beforethat time have not been made;(c) that the creditor has not already been required to give a notice underthis section in relation to either of those payments; and(d) if a judgment has been given in relation to the agreement before thattime, that there is no sum still to be paid under the judgment by thedebtor.(2) The creditor shall, no later than the end of the period within which he is nextrequired to give a statement under section 78(4) in relation to the agreement,give the debtor a notice under this section.(3) The notice shall include a copy of the current arrears information sheet undersection 86A.(4) The notice may be incorporated in a statement or other notice which the creditorgives the debtor in relation to the agreement by virtue of another provision ofthis Act.(5) The debtor shall have no liability to pay any sum in connection with thepreparation or the giving to him of the notice.(6) Regulations may make provision about the form and content of notices underthis section.(7) In this section ‘applicable agreement’ means an agreement which—(a) is a regulated agreement for running-account credit; and(b) is neither a non-commercial agreement nor a small agreement.”

Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)9Commencement InformationI14I1511S. 10 in force at 16.6.2006 for specified purposes by S.I. 2006/1508, art. 3(1), Sch. 1S. 10 in force at 1.10.2008 in so far as not already in force by S.I. 2007/3300, art. 3(3), Sch. 3Failure to give notice of sums in arrearsAfter section 86C of the 1974 Act (inserted by section 10 of this Act) insert—“86D Failure to give notice of sums in arrears(1) This section applies where the creditor or owner under an agreement is undera duty to give the debtor or hirer notices under section 86B but fails to givehim such a notice—(a) within the period mentioned in subsection (2)(a) of that section; or(b) within the period of six months beginning with the day after the day onwhich such a notice was last given to him.(2) This section also applies where the creditor under an agreement is under a dutyto give the debtor a notice under section 86C but fails to do so before the endof the period mentioned in subsection (2) of that section.(3) The creditor or owner shall not be entitled to enforce the agreement during theperiod of non-compliance.(4) The debtor or hirer shall have no liability to pay—(a) any sum of interest to the extent calculated by reference to the periodof non-compliance or to any part of it; or(b) any default sum which (apart from this paragraph)—(i) would have become payable during the period of noncompliance; or(ii) would have become payable after the end of that period inconnection with a breach of the agreement which occurs duringthat period (whether or not the breach continues after the endof that period).(5) In this section ‘the period of non-compliance’ means, in relation to a failure togive a notice under section 86B or 86C to the debtor or hirer, the period which—(a) begins immediately after the end of the period mentioned in (as thecase may be) subsection (1)(a) or (b) or (2); and(b) ends at the end of the day mentioned in subsection (6).(6) That day is—(a) in the case of a failure to give a notice under section 86B as mentionedin subsection (1)(a) of this section, the day on which the notice is givento the debtor or hirer;(b) in the case of a failure to give a notice under that section as mentionedin subsection (1)(b) of this section, the earlier of the following—(i) the day on which the notice is given to the debtor or hirer;(ii) the day on which the condition mentioned in subsection (4)(a)of that section is satisfied;

10Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)(c)in the case of a failure to give a notice under section 86C, the day onwhich the notice is given to the debtor.”Commencement InformationI1612S. 11 in force at 1.10.2008 by S.I. 2007/3300, art. 3(3), Sch. 3Notice of default sumsAfter section 86D of the 1974 Act (inserted by section 11 of this Act) insert—“86E Notice of default sums(1) This section applies where a default sum becomes payable under a regulatedagreement by the debtor or hirer.(2) The creditor or owner shall, within the prescribed period after the default sumbecomes payable, give the debtor or hirer a notice under this section.(3) The notice under this section may be incorporated in a statement or other noticewhich the creditor or owner gives the debtor or hirer in relation to the agreementby virtue of another provision of this Act.(4) The debtor or hirer shall have no liability to pay interest in connection with thedefault sum to the extent that the interest is calculated by reference to a periodoccurring before the 29th day after the day on which the debtor or hirer is giventhe notice under this section.(5) If the creditor or owner fails to give the debtor or hirer the notice under thissection within the period mentioned in subsection (2), he shall not be entitledto enforce the agreement until the notice is given to the debtor or hirer.(6) The debtor or hirer shall have no liability to pay any sum in connection withthe preparation or the giving to him of the notice under this section.(7) Regulations may—(a) provide that this section does not apply in relation to a default sumwhich is less than a prescribed amount;(b) make provision about the form and content of notices under thissection.(8) This section does not apply in relation to a non-commercial agreement or to asmall agreement.”Commencement InformationI17I1813S. 12 in force at 16.6.2006 for specified purposes by S.I. 2006/1508, art. 3(1), Sch. 1S. 12 in force at 1.10.2008 in so far as not already in force by S.I. 2007/3300, art. 3(3), Sch. 3Interest on default sumsAfter section 86E of the 1974 Act (inserted by section 12 of this Act) insert—

Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)11“86F Interest on default sums(1) This section applies where a default sum becomes payable under a regulatedagreement by the debtor or hirer.(2) The debtor or hirer shall only be liable to pay interest in connection with thedefault sum if the interest is simple interest.”Commencement InformationI1914S. 13 in force at 1.10.2008 by S.I. 2007/3300, art. 3(3), Sch. 3Default notices(1) In subsections (2) and (3) of section 88 of the 1974 Act (contents and effect of defaultnotice) for “seven” wherever occurring substitute “ 14 ”.(2) In subsection (4) of that section after “it” insert “ and any other prescribed mattersrelating to the agreement ”.(3) After that subsection insert—“(4A) The default notice must also include a copy of the current default informationsheet under section 86A.”Commencement InformationI20I21I2215S. 14(1) in force at 1.10.2006 by S.I. 2006/1508, art. 3(2), Sch. 2S. 14(2) in force at 16.6.2006 by S.I. 2006/1508, art. 3(1), Sch. 1S. 14(3) in force at 1.10.2008 by S.I. 2007/3300, art. 3(3), Sch. 3Enforceability of regulated agreementsIn section 127 of the 1974 Act (enforcement orders in cases of infringement)subsections (3) to (5) shall cease to have effect.Commencement InformationI2316S. 15 in force at 6.4.2007 by S.I. 2007/123, art. 3(2), Sch. 2Time orders(1) In subsection (1) of section 129 of the 1974 Act (time orders) before paragraph (c)insert—“(ba) on an application made by a debtor or hirer under this paragraph afterhe has been given a notice under section 86B or 86C; or”.(2) After that section insert—

12Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)“129A Debtor or hirer to give notice of intent etc. to creditor or owner(1) A debtor or hirer may make an application under section 129(1)(ba) in relationto a regulated agreement only if—(a) following his being given the notice under section 86B or 86C, hegave a notice within subsection (2) to the creditor or owner; and(b) a period of at least 14 days has elapsed after the day on which he gavethat notice to the creditor or owner.(2) A notice is within this subsection if it—(a) indicates that the debtor or hirer intends to make the application;(b) indicates that he wants to make a proposal to the creditor or owner inrelation to his making of payments under the agreement; and(c) gives details of that proposal.”(3) In section 143(b) of that Act (provision which may be made by rules of court inNorthern Ireland) after “129(1)(b)” insert “ or (ba) ”.(4) In section 32(1) of the Sheriff Courts (Scotland) Act 1971 (c. 58) (regulation of civilprocedure in sheriff court) after paragraph (l) insert—“(m) permitting the debtor or hirer in proceedings for—(i) a time order under section 129 of the Consumer Credit Act1974 (time orders), or(ii) variation or revocation, under section 130(6) of that Act(variation and revocation of time orders), of a time ordermade under section 129,to be represented by a person who is neither an advocate nor asolicitor.”(5) In section 32(2B) of the Solicitors (Scotland) Act 1980 (c. 46) (offence for unqualifiedpersons to prepare certain documents)—(a) after “represent” insert “ —(a) ”;(b) after “cause” insert—“(b) a debtor or hirer in proceedings for—(i) a time order under section 129 of the ConsumerCredit Act 1974 (time orders); or(ii) variation or revocation, under section 130(6) of thatAct (variation and revocation of time orders), of atime order made under section 129”.Commencement InformationI2417S. 16 in force at 1.10.2008 by S.I. 2007/3300, art. 3(3), Sch. 3Interest payable on judgment debts etc.After section 130 of the 1974 Act insert—

Consumer Credit Act 2006 (c. 14)Document Generated: 2021-08-04Status: This version of this Act contains provisions that are prospective.Changes to legislation: There are currently no known outstanding effectsfor the Consumer Credit Act 2006. (See end of Document for details)13“Interest130A Interest payable on judgment debts etc.(1) If the creditor or owner under a regulated agreement wants to be able to recoverfrom the debtor or hirer post-judgment interest in connection with a sum thatis required to be paid under a judgment given in relation to the agreement (the‘judgment sum’), he—(a) after the giving of that judgment, shall give the debtor or hirer a noticeunder this section (the ‘first required notice’); and(b) after the giving of the first required notice, shall give the debtor orhirer further notices under this section at intervals of not more than sixmonths.(2) The debtor or hirer shall have no liability to pay post-judgment interest inconnection with the judgment sum to the extent that the interest is calculatedby reference to a period occurring before the day on which he is given the firstrequired notice.(3) If the creditor or owner fails

I7 S. 6 in force at 16.6.2006 for specified purposes by S.I. 2006/1508, art. 3(1), Sch. 1 I8 S. 6 in force at 1.10.2008 in so far as not already in force by S.I. 2007/3300, art. 3(3), Sch. 3 7 Further provision relating to statements (1)In section 78 of the 1974 Act (duty to give information to debtor under running-