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Consumer Credit Act 1974

Type Public General Act

Publication 1974-07-31

Last updated 2025-07-15

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Enforcement of certain regulated agreements and securities

Enforcement orders in cases of infringement.

127

(1) In the case of an application for an enforcement order under—

(za) section 55(2) (disclosure of information), or

(zb) section 61B(3) (duty to supply copy of overdraft agreement), or

(a) section 65(1) (improperly executed agreements), or

(b) section 105(7)(a) or (b) (improperly executed security instruments), or

(d) section 124(1) or (2) (taking of negotiable instrument in contravention of section 123),

the court shall dismiss the application if, but . . . only if, it considers it just to do so having regard to—

(i) prejudice caused to any person by the contravention in question, and the degree of culpability for it; and

(ii) the powers conferred on the court by subsection (2) and sections 135 and 136.

(2) If it appears to the court just to do so, it may in an enforcement order reduce or discharge any sum payable by the debtor or hirer, or any surety, so as to compensate him for prejudice suffered as a result of the contravention in question.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enforcement orders on death of debtor or hirer.

128

The court shall make an order under section 86(2) if, but only if, the creditor or owner proves that he has been unable to satisfy himself that the present and future obligations of the debtor or hirer under the agreement are likely to be discharged.

Extension of time

Time orders.

129

(1) Subject to subsection (3) below, if it appears to the court just to do so—

(a) on an application for an enforcement order; or

(b) on an application made by a debtor or hirer under this paragraph after service on him of—

(i) a default notice, or

(ii) a notice under section 76(1) or 98(1); or

(bza) on an application made by a debtor under this paragraph after the creditor has informed the debtor of the creditor’s intention—

(i) to enforce a term of a regulated deferred payment credit agreement by—

(aa) demanding earlier payment of any sum,

(bb) treating any right conferred on the debtor by the agreement as terminated, restricted or deferred, or

(ii) to terminate a regulated deferred payment credit agreement, or

(ba) on an application made by a debtor or hirer under this paragraph after he has been given a notice under section 86B or 86C; or

(c) in an action brought by a creditor or owner to enforce a regulated agreement or any security, or recover possession of any goods or land to which a regulated agreement relates,

the court may make an order under this section (a “time order ”).

(2) A time order shall provide for one or both of the following, as the court considers just—

(a) the payment by the debtor or hirer or any surety of any sum owed under a regulated agreement or a security by such instalments, payable at such times, as the court, having regard to the means of the debtor or hirer and any surety, considers reasonable;

(b) the remedying by the debtor or hirer of any breach of a regulated agreement (other than non-payment of money) within such period as the court may specify.

(3) Where in Scotland a time to pay direction or a time to pay order has been made in relation to a debt, it shall not thereafter be competent to make a time order in relation to the same debt.

Debtor or hirer to give notice of intent etc. to creditor or owner

129A

(1) A debtor or hirer may make an application under section 129(1)(ba) in relation to a regulated agreement only if—

(a) following his being given the notice under section 86B or 86C, he gave 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 gave that 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 in relation to his making of payments under the agreement; and

Supplemental provisions about time orders.

130

(1) Where in accordance with rules of court an offer to pay any sum by instalments is made by the debtor or hirer and accepted by the creditor or owner, the court may in accordance with rules of court make a time order under section 129(2)(a) giving effect to the offer without hearing evidence of means.

(2) In the case of a hire-purchase or conditional sale agreement only, a time order under section 129(2)(a) may deal with sums which, although not payable by the debtor at the time the order is made, would if the agreement continued in force become payable under it subsequently.

(3) A time order under section 129(2)(a) shall not be made where the regulated agreement is secured by a pledge if, by virtue of regulations made under section 76(5), 87(4) or 98(5), service of a notice is not necessary for enforcement of the pledge.

(4) Where, following the making of a time order in relation to a regulated hire-purchase or conditional sale agreement or a regulated consumer hire agreement, the debtor or hirer is in possession of the goods, he shall be treated (except in the case of a debtor to whom the creditor’s title has passed) as a bailee or (in Scotland) a custodier of the goods under the terms of the agreement, notwithstanding that the agreement has been terminated.

(5) Without prejudice to anything done by the creditor or owner before the commencement of the period specified in a time order made under section 129(2)(b) ( “the relevant period ”),—

(a) he shall not while the relevant period subsists take in relation to the agreement any action such as is mentioned in section 87(1);

(b) where—

(i) a provision of the agreement ( “the secondary provision ”) becomes operative only on breach of another provision of the agreement ( “the primary provision ”), and

(ii) the time order provides for the remedying of such a breach of the primary provision within the relevant period,

he shall not treat the secondary provision as operative before the end of that period;

(c) if while the relevant period subsists the breach to which the order relates is remedied it shall be treated as not having occurred.

(6) On the application of any person affected by a time order, the court may vary or revoke the order.

Interest

Interest payable on judgment debts etc.

130A

(1) If the creditor or owner under a regulated agreement wants to be able to recover from the debtor or hirer post-judgment interest in connection with a sum that is 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 notice under this section (the ‘first required notice’); and

(b) after the giving of the first required notice, shall give the debtor or hirer further notices under this section at intervals of not more than six months.

(2) The debtor or hirer shall have no liability to pay post-judgment interest in connection with the judgment sum to the extent that the interest is calculated by reference to a period occurring before the day on which he is given the first required notice.

(3) If the creditor or owner fails to give the debtor or hirer a notice under this section within the period of six months beginning with the day after the day on which such a notice was last given to the debtor or hirer, the debtor or hirer shall have no liability to pay post-judgment interest in connection with the judgment sum to the extent that the interest is calculated by reference to the whole or to a part of the period which—

(a) begins immediately after the end of that period of six months; and

(b) ends at the end of the day on which the notice is given to the debtor or hirer.

(4) The debtor or hirer shall have no liability to pay any sum in connection with the preparation or the giving to him of a notice under this section.

(5) A notice under this section may be incorporated in a statement or other notice which the creditor or owner gives the debtor or hirer in relation to the agreement by virtue of another provision of this Act.

(6) Regulations may make provision about the form and content of notices under this section.

(7) This section does not apply in relation to post-judgment interest which is required to be paid by virtue of any of the following—

(a) section 4 of the Administration of Justice (Scotland) Act 1972;

(b) Article 127 of the Judgments Enforcement (Northern Ireland) Order 1981;

(8) This section does not apply in relation to a non-commercial agreement or to a small agreement.

(9) In this section ‘post-judgment interest’ means interest to the extent calculated by reference to a period occurring after the giving of the judgment under which the judgment sum is required to be paid.

Protection of property pending proceedings

Protection orders.

131

The court, on the application of the creditor or owner under a regulated agreement, may make such orders as it thinks just for protecting any property of the creditor or owner, or property subject to any security, from damage or depreciation pending the determination of any proceedings under this Act, including orders restricting or prohibiting use of the property or giving directions as to its custody.

Hire and hire-purchase etc. agreements

Financial relief for hirer.

132

(1) Where the owner under a regulated consumer hire agreement recovers possession of goods to which the agreement relates otherwise than by action, the hirer may apply to the court for an order that—

(a) the whole or part of any sum paid by the hirer to the owner in respect of the goods shall be repaid, and

(b) the obligation to pay the whole or part of any sum owed by the hirer to the owner in respect of the goods shall cease,

and if it appears to the court just to do so, having regard to the extent of the enjoyment of the goods by the hirer, the court shall grant the application in full or in part.

(2) Where in proceedings relating to a regulated consumer hire agreement the court makes an order for the delivery to the owner of goods to which the agreement relates the court may include in the order the like provision as may be made in an order under subsection (1).

Hire-purchase etc. agreements: special powers of court.

133

(1) If, in relation to a regulated hire-purchase or conditional sale agreement, it appears to the court just to do so—

(a) on an application for an enforcement order or time order; or

(b) in an action brought by the creditor to recover possession of goods to which the agreement relates,

the court may—

(i) make an order (a “return order ”) for the return to the creditor of goods to which the agreement relates;

(ii) make an order (a “transfer order ”) for the transfer to the debtor of the creditor’s title to certain goods to which the agreement relates ( “the transferred goods ”), and the return to the creditor of the remainder of the goods.

(2) In determining for the purposes of this section how much of the total price has been paid ( “the paid-up sum ”), the court may—

(a) treat any sum paid by the debtor, or owed by the creditor, in relation to the goods as part of the paid-up sum;

(b) deduct any sum owed by the debtor in relation to the goods (otherwise than as part of the total price) from the paid-up sum,

and make corresponding reductions in amounts so owed.

(3) Where a transfer order is made, the transferred goods shall be such of the goods to which the agreement relates as the court thinks just; but a transfer order shall be made only where the paid-up sum exceeds the part of the total price referable to the transferred goods by an amount equal to at least one-third of the unpaid balance of the total price.

(4) Notwithstanding the making of a return order or transfer order, the debtor may at any time before the goods enter the possession of the creditor, on payment of the balance of the total price and the fulfilment of any other necessary conditions, claim the goods ordered to be returned to the creditor.

(5) When, in pursuance of a time order or under this section, the total price of goods under a regulated hire-purchase agreement or regulated conditional sale agreement is paid and any other necessary conditions are fulfilled, the creditor’s title to the goods vests in the debtor.

(6) If, in contravention of a return order or transfer order, any goods to which the order relates are not returned to the creditor, the court, on the application of the creditor, may—

(a) revoke so much of the order as relates to those goods, and

(b) order the debtor to pay the creditor the unpaid portion of so much of the total price as is referable to those goods.

(7) For the purposes of this section, the part of the total price referable to any goods is the part assigned to those goods by the agreement or (if no such assignment is made) the part determined by the court to be reasonable.

Evidence of adverse detention in hire-purchase etc. cases.

134

(1) Where goods are comprised in a regulated hire-purchase agreement, regulated conditional sale agreement or regulated consumer hire agreement, and the creditor or owner—

(a) brings an action or makes an application to enforce a right to recover possession of the goods from the debtor or hirer, and

(b) proves that a demand for the delivery of the goods was included in the default notice under section 88(5), or that, after the right to recover possession of the goods accrued but before the action was begun or the application was made, he made a request in writing to the debtor or hirer to surrender the goods,

then, for the purposes of the claim of the creditor or owner to recover possession of the goods, the possession of them by the debtor or hirer shall be deemed to be adverse to the creditor or owner.

(2) In subsection (1) “the debtor or hirer” includes a person in possession of the goods at any time between the debtor’s or hirer’s death and the grant of probate or administration, or (in Scotland) confirmation.

(3) Nothing in this section affects a claim for damages for conversion or (in Scotland) for delict.

Supplemental provisions as to orders

Power to impose conditions, or suspend operation of order.

135

(1) If it considers it just to do so, the court may in an order made by it in relation to a regulated agreement include provisions—

(a) making the operation of any term of the order conditional on the doing of specified acts by any party to the proceedings;

(b) suspending the operation of any term of the order either—

(i) until such time as the court subsequently directs, or

(ii) until the occurrence of a specified act or omission.

(2) The court shall not suspend the operation of a term requiring the delivery up of goods by any person unless satisfied that the goods are in his possession or control.

(3) In the case of a consumer hire agreement, the court shall not so use its powers under subsection (1)(b) as to extend the period for which, under the terms of the agreement, the hirer is entitled to possession of the goods to which the agreement relates.

(4) On the application of any person affected by a provision included under subsection (1), the court may vary the provision.

Power to vary agreements and securities.

136

The court may in an order made by it under this Act include such provision as it considers just for amending any agreement or security in consequence of a term of the order.

Extortionate credit bargains

Extortionate credit bargains.

137

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When bargains are extortionate.

138

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Reopening of extortionate agreements.

139

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Interpretation of sections 137 to 139.

140

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Unfair relationships

Unfair relationships between creditors and debtors

140A

(1) The court may make an order under section 140B in connection with a credit agreement if it determines that the relationship between the creditor and the debtor arising out of the agreement (or the agreement taken with any related agreement) is unfair to the debtor because of one or more of the following—

(a) any of the terms of the agreement or of any related agreement;

(b) the way in which the creditor has exercised or enforced any of his rights under the agreement or any related agreement;

(c) any other thing done (or not done) by, or on behalf of, the creditor (either before or after the making of the agreement or any related agreement).

(2) In deciding whether to make a determination under this section the court shall have regard to all matters it thinks relevant (including matters relating to the creditor and matters relating to the debtor).

(3) For the purposes of this section the court shall (except to the extent that it is not appropriate to do so) treat anything done (or not done) by, or on behalf of, or in relation to, an associate or a former associate of the creditor as if done (or not done) by, or on behalf of, or in relation to, the creditor.

(4) A determination may be made under this section in relation to a relationship notwithstanding that the relationship may have ended.

(5) An order under section 140B shall not be made in connection with a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) of that Order (regulated mortgage contracts and regulated home purchase plans) .

(6) An order under section 140B shall not be made in connection with a credit agreement entered into under the Bounce Back Loan Scheme.

(7) In subsection (6) “the Bounce Back Loan Scheme” means the scheme of that name operated from 4 May 2020 by the British Business Bank plc on behalf of the Secretary of State.

Powers of court in relation to unfair relationships

140B

(1) An order under this section in connection with a credit agreement may do one or more of the following—

(a) require the creditor, or any associate or former associate of his, to repay (in whole or in part) any sum paid by the debtor or by a surety by virtue of the agreement or any related agreement (whether paid to the creditor, the associate or the former associate or to any other person);

(b) require the creditor, or any associate or former associate of his, to do or not to do (or to cease doing) anything specified in the order in connection with the agreement or any related agreement;

(c) reduce or discharge any sum payable by the debtor or by a surety by virtue of the agreement or any related agreement;

(d) direct the return to a surety of any property provided by him for the purposes of a security;

(e) otherwise set aside (in whole or in part) any duty imposed on the debtor or on a surety by virtue of the agreement or any related agreement;

(f) alter the terms of the agreement or of any related agreement;

(g) direct accounts to be taken, or (in Scotland) an accounting to be made, between any persons.

(2) An order under this section may be made in connection with a credit agreement only—

(a) on an application made by the debtor or by a surety;

(b) at the instance of the debtor or a surety in any proceedings in any court to which the debtor and the creditor are parties, being proceedings to enforce the agreement or any related agreement; or

(c) at the instance of the debtor or a surety in any other proceedings in any court where the amount paid or payable under the agreement or any related agreement is relevant.

(3) An order under this section may be made notwithstanding that its effect is to place on the creditor, or any associate or former associate of his, a burden in respect of an advantage enjoyed by another person.

(4) An application under subsection (2)(a) may only be made—

(a) in England and Wales, to the county court;

(b) in Scotland, to the sheriff court;

(5) In Scotland such an application may be made in the sheriff court for the district in which the debtor or surety resides or carries on business.

(6) In Northern Ireland such an application may be made to the county court if the credit agreement is an agreement under which the creditor provides the debtor with—

(a) fixed-sum credit not exceeding £15,000; or

(b) running-account credit on which the credit limit does not exceed £15,000.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) A party to any proceedings mentioned in subsection (2) shall be entitled, in accordance with rules of court, to have any person who might be the subject of an order under this section made a party to the proceedings.

(9) If, in any such proceedings, the debtor or a surety alleges that the relationship between the creditor and the debtor is unfair to the debtor, it is for the creditor to prove to the contrary.

Interpretation of ss. 140A and 140B

140C

(1) In this section and in sections 140A and 140B ‘credit agreement’ means any agreement between an individual (the ‘debtor’) and any other person (the ‘creditor’) by which the creditor provides the debtor with credit of any amount.

(2) References in this section and in sections 140A and 140B to the creditor or to the debtor under a credit agreement include—

(a) references to the person to whom his rights and duties under the agreement have passed by assignment or operation of law;

(b) where two or more persons are the creditor or the debtor, references to any one or more of those persons.

(3) The definition of ‘court’ in section 189(1) does not apply for the purposes of sections 140A and 140B.

(4) References in sections 140A and 140B to an agreement related to a credit agreement (the ‘main agreement’) are references to—

(a) a credit agreement consolidated by the main agreement;

(b) a linked transaction in relation to the main agreement or to a credit agreement within paragraph (a);

(c) a security provided in relation to the main agreement, to a credit agreement within paragraph (a) or to a linked transaction within paragraph (b).

(5) In the case of a credit agreement which is not a regulated consumer credit agreement, for the purposes of subsection (4) a transaction shall be treated as being a linked transaction in relation to that agreement if it would have been such a transaction had that agreement been a regulated consumer credit agreement.

(6) For the purposes of this section and section 140B the definitions of ‘security’ and ‘surety’ in section 189(1) apply (with any appropriate changes) in relation to—

(a) a credit agreement which is not a consumer credit agreement as if it were a consumer credit agreement; and

(b) a transaction which is a linked transaction by virtue of subsection (5).

(7) For the purposes of this section a credit agreement (the ‘earlier agreement’) is consolidated by another credit agreement (the ‘later agreement’) if—

(a) the later agreement is entered into by the debtor (in whole or in part) for purposes connected with debts owed by virtue of the earlier agreement; and

(b) at any time prior to the later agreement being entered into the parties to the earlier agreement included—

(i) the debtor under the later agreement; and

(ii) the creditor under the later agreement or an associate or a former associate of his.

(8) Further, if the later agreement is itself consolidated by another credit agreement (whether by virtue of this subsection or subsection (7)), then the earlier agreement is consolidated by that other agreement as well.

Advice and information

140D

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Miscellaneous

Jurisdiction and parties.

141

(1) In England and Wales the county court shall have jurisdiction to hear and determine—

(a) any action by the creditor or owner to enforce a regulated agreement or any security relating to it;

(b) any action to enforce any linked transaction against the debtor or hirer or his relative,

and such an action shall not be brought in any other court.

(2) Where an action or application is brought in the High Court which, by virtue of this Act, ought to have been brought in the county court it shall not be treated as improperly brought, but shall be transferred to the county court.

(3) In Scotland the sheriff court shall have jurisdiction to hear and determine any action referred to in subsection (1) and such an action shall not be brought in any other court.

(3A) Subject to subsection (3B) an action which is brought in the sheriff court by virtue of subsection (3) shall be brought only in one of the following courts, namely—

(a) the court for the place where the debtor or hirer is domiciled (within the meaning of section 41 or 42 of the Civil Jurisdiction and Judgments Act 1982);

(b) the court for the place where the debtor or hirer carries on business; and

(c) where the purpose of the action is to assert, declare or determine proprietary or possessory rights, or rights of security, in or over moveable property, or to obtain authority to dispose of moveable property, the court for the place where the property is situated.

(3B) Subsection (3A) shall not apply—

(a) where Rule 3 of Schedule 8 to the said Act of 1982 applies; or

(b) where the jurisdiction of another court has been prorogated by an agreement entered into after the dispute has arisen.

(4) In Northern Ireland the county court shall have jurisdiction to hear and determine any action or application falling within subsection (1).

(5) Except as may be provided by rules of court, all the parties to a regulated agreement, and any surety, shall be made parties to any proceedings relating to the agreement.

Power to declare rights of parties.

142

(1) Where under any provision of this Act a thing can be done by a creditor or owner on an enforcement order only, and either—

(a) the court dismisses (except on technical grounds only) an application for an enforcement order, or

(b) where no such application has been made or such an application has been dismissed on technical grounds only, an interested party applies to the court for a declaration under this subsection,

the court may if it thinks just make a declaration that the creditor or owner is not entitled to do that thing, and thereafter no application for an enforcement order in respect of it shall be entertained.

(2) Where—

(a) a regulated agreement or linked transaction is cancelled under section 69(1), or becomes subject to section 69(2), or

(b) a regulated agreement is terminated under section 91,

and an interested party applies to the court for a declaration under this subsection, the court may make a declaration to that effect.

Northern Ireland

Jurisdiction of county court in Northern Ireland.

143

Without prejudice to any provision which may be made by rules of court made in relation to county courts in Northern Ireland such rules may provide—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appeal from county court in Northern Ireland.

144

Any person dissatisfied—

(a) with an order, whether adverse to him or in his favour, made by a county court in Northern Ireland in the exercise of any jurisdiction conferred by this Act, or

(b) with the dismissal or refusal by such a county court of any action or application instituted by him under the provisions of this Act,

shall be entitled to appeal from the order or from the dismissal or refusal as if the order, dismissal or refusal had been made in exercise of the jurisdiction conferred by Part III of the County Courts Northern Ireland) Order 1980 and the appeal brought under Part VI of that Order and Articles 61 and 62 of that Order shall apply accordingly.

Part X — Ancillary Credit Businesses

Definitions

Types of ancillary credit business.

145

(1) An ancillary credit business is any business so far as it comprises or relates to—

(a) credit brokerage,

(b) debt-adjusting,

(d) debt-collecting,

(da) debt administration,

(db) the provision of credit information services, or

(e) the operation of a credit reference agency.

(2) “Credit brokerage” means the carrying on of an activity of the kind specified by article 36A(1)(a) to (c) of the Regulated Activities Order (credit broking), disregarding the effect of paragraph (2) of that article.

(5) “Debt adjusting” means the carrying on of an activity of the kind specified by article 39D of that Order (debt adjusting).

(6) “Debt-counselling” means the carrying on of an activity of the kind specified by article 39E of that Order (debt-counselling).

(7) “Debt-collecting” means the carrying on of an activity of the kind specified by article 39F of that Order (debt-collecting).

(7A) “Debt administration” means the carrying on of an activity of the kind specified by article 39G of that Order (debt administration), disregarding the effect of paragraph (3) of that article.

(7B) A person (“P”) provides credit information services if P carries on, by way of business, an activity of the kind specified by article 89A(1) or (2) of that Order (providing credit information services).

(8) A person (“P”) operates a credit reference agency if P carries on, by way of business, an activity of the kind specified by article 89B of that Order (providing credit references).

Exceptions from section 145.

146

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...

Application of Part III.

147

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Agreement for services of unlicensed trader.

148

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Regulated agreements made on introductions by unlicensed credit-broker.

149

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Appeals to Secretary of State against licensing decisions.

150

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Seeking business

Advertisements.

151

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Application of sections 52 to 54 to credit brokerage etc.

152

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Definition of canvassing off trade premises (agreements for ancillary credit services).

153

(1) An individual (the “canvasser ”) canvasses off trade premises the services of a person carrying on an ancillary credit business if he solicits the entry of another individual (the “consumer ”) into an agreement for the provision to the consumer of those services by making oral representations to the consumer, or any other individual, during a visit by the canvasser to any place (not excluded by subsection (2)) where the consumer, or that other individual as the case may be, is, being a visit—

(a) carried out for the purpose of making such oral representations to individuals who are at that place, but

(b) not carried out in response to a request made on a previous occasion.

(2) A place is excluded from subsection (1) if it is a place where (whether on a permanent or temporary basis)—

(a) the ancillary credit business is carried on, or

(b) any business is carried on by the canvasser or the person whose employee or agent the canvasser is, or by the consumer.

Prohibition of canvassing certain ancillary credit services off trade premises.

154

It is an offence to canvass off trade premises the services of a person carrying on a business of credit-brokerage, debt-adjusting , debt-counselling or the provision of credit information services.

Right to recover brokerage fees.

155

(1) Subject to subsection (2A),the excess over £5 of a fee or commission for his services charged by a credit-broker to an individual to whom this subsection applies shall cease to be payable or, as the case may be, shall be recoverable by the individual if the introduction does not result in his entering into a relevant agreement within the six months following the introduction (disregarding any agreement which is cancelled under section 69(1) or becomes subject to section 69(2)).

(2) Subsection (1) applies to an individual who sought an introduction for a purpose which would have been fulfilled by his entry into—

(a) a regulated agreement, or

(b) in the case of an individual desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by that individual or a relative of that individual, an agreement for credit secured on land,

(c) a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order, or

(d) an agreement which is not a regulated credit agreement or a regulated consumer hire agreement but which would be such an agreement if the law applicable to the agreement were the law of a part of the United Kingdom.

(2A) But subsection (1) does not apply where—

(a) the fee or commission relates to the effecting of an introduction of a kind mentioned in article 36E of the Regulated Activities Order (activities in relation to certain agreements relating to land); and

(b) the person charging that fee or commission is an authorised person or an appointed representative, within the meaning of the Financial Services and Markets Act 2000.

(3) An agreement is a relevant agreement for the purposes of subsection (1) in relation to an individual if it is an agreement such as is referred to in subsection (2) in relation to that individual.

(4) In the case of an individual desiring to obtain credit under a consumer credit agreement, any sum payable or paid by him to a credit-broker otherwise than as a fee or commission for the credit-broker’s services shall for the purposes of subsection (1) be treated as such a fee or commission if it enters, or would enter, into the total charge for credit.

...

Entry into agreements.

156

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Credit reference agencies

Duty to disclose name etc. of agency.

157

(A1) Where a creditor under a prospective regulated agreement, other than an excluded agreement, decides not to proceed with it on the basis of information obtained by the creditor from a credit reference agency, the creditor must, when informing the debtor of the decision—

(a) inform the debtor that this decision has been reached on the basis of information from a credit reference agency, and

(b) provide the debtor with the particulars of the agency including its name, address and telephone number.

(1) In any other case, a creditor, owner or negotiator, within the prescribed period after receiving a request in writing to that effect from the debtor or hirer, shall give him notice of the name and address of any credit reference agency from which the creditor, owner or negotiator has, during the antecedent negotiations, applied for information about his financial standing.

(2) Subsection (1) does not apply to a request received more than 28 days after the termination of the antecedent negotiations, whether on the making of the regulated agreement or otherwise.

(2A) A creditor is not required to disclose information under this section if such disclosure—

(a) contravenes the UK GDPR,

(b) is prohibited by an assimilated obligation,

(d) would, or would be likely to, prejudice—

(i) the prevention or detection of crime,

(ii) the apprehension or prosecution of offenders, or

(iii) the administration of justice.

(3) If the creditor, owner or negotiator fails to comply with subsection (A1) or (1) he commits an offence.

(4) For the purposes of subsection (A1) an agreement is an excluded agreement if it is—

(a) a consumer hire agreement, or

(b) an agreement secured on land.

Duty of agency to disclose filed information.

158

(1) A credit reference agency, within the prescribed period after receiving,—

(a) a request in writing to that effect from a consumer,

(b) such particulars as the agency may reasonably require to enable them to identify the file, and

shall give the consumer a copy of the file relating to it kept by the agency.

(2) When giving a copy of the file under subsection (1), the agency shall also give the consumer a statement in the prescribed form of the consumer’s rights under section 159.

(3) If the agency does not keep a file relating to the consumer it shall give the consumernotice of that fact, but need not return any money paid.

(4) If the agency contravenes any provision of this section it commits an offence.

(4A) In this section ‘consumer’ means—

(a) a partnership consisting of two or three persons not all of whom are bodies corporate; or

(b) an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.

(5) In this Act “file”, in relation to an individual, means all the information about him kept by a credit reference agency, regardless of how the information is stored, and “copy of the file ”, as respects information not in plain English, means a transcript reduced into plain English.

Correction of wrong information.

159

(1) Any individual (the “objector”) given—

(a) information under Article 15(1) to (3) of the UK GDPR (confirmation of processing, access to data and safeguards for third country transfers) by a credit reference agency, or

(b) information under section 158,

who considers that an entry in his file is incorrect, and that if it is not corrected he is likely to be prejudiced, may give notice to the agency requiring it either to remove the entry from the file or amend it.

(2) Within 28 days after receiving a notice under subsection (1), the agency shall by notice inform the objector that it has—

(a) removed the entry from the file, or

(b) amended the entry, or

and if the notice states that the agency has amended the entry it shall include a copy of the file so far as it comprises the amended entry.

(3) Within 28 days after receiving a notice under subsection (2), or where no such notice was given, within 28 days after the expiry of the period mentioned in subsection (2), the objector may, unless he has been informed by the agency that it has removed the entry from his file, serve a further notice on the agency requiring it to add to the file an accompanying notice of correction (not exceeding 200 words) drawn up by the objector, and include a copy of it when furnishing information included in or based on that entry.

(4) Within 28 days after receiving a notice under subsection (3), the agency, unless it intends to apply to the the relevant authority under subsection (5), shall by notice inform the objector that it has received the notice under subsection (3) and intends to comply with it.

(5) If—

(a) the objector has not received a notice under subsection (4) within the time required, or

(b) it appears to the agency that it would be improper for it to publish a notice of correction because it is incorrect, or unjustly defames any person, or is frivolous or scandalous, or is for any other reason unsuitable,

the objector or, as the case may be, the agency may, in the prescribed manner and on payment of the prescribed fee, apply to the relevant authority, who may make such order on the application as he thinks fit.

(6) If a person to whom an order under this section is directed fails to comply with it within the period specified in the order he commits an offence.

(7) The Information Commissioner may vary or revoke any order made by him under this section.

(8) In this section “the relevant authority” means—

(a) where the objector is a partnership or other unincorporated body of persons, the FCA, and

(b) in any other case, the Information Commissioner.

Alternative procedure for business consumers.

160

(1) The FCA , on an application made by a credit reference agency, may direct that this section shall apply to the agency if it is satisfied—

(a) that compliance with section 158 in the case of consumers who carry on a business would adversely affect the service provided to its customers by the agency, and

(b) that, having regard to the methods employed by the agency and to any other relevant factors, it is probable that consumers carrying on a business would not be prejudiced by the making of the direction.

(2) Where an agency to which this section applies receives a request, particulars and a fee under section 158(1) from a consumer who carries on a business, and section 158(3) does not apply, the agency, instead of complying with section 158, may elect to deal with the matter under the following subsections.

(3) Instead of giving the consumer a copy of the file, the agency shall within the prescribed period give notice to the consumer that it is proceeding under this section, and by notice give the consumer such information included in or based on entries in the file as the FCA may direct, together with a statement in the prescribed form of the consumer’s rights under subsections (4) and (5).

(4) If within 28 days after receiving the information given to the consumer under subsection (3), or such longer period as the FCA may allow, the consumer—

(a) gives notice to the FCA that the consumer is dissatisfied with the information, and

(b) satisfies the FCA that the consumer has taken such steps in relation to the agency as may be reasonable with a view to removing the cause of the consumer’s dissatisfaction, and

the FCA may direct the agency to give the FCA a copy of the file, and the FCA may disclose to the consumer such of the information on the file as the FCA thinks fit.

(5) Section 159 applies with any necessary modifications to information given to the consumer under this section as it applies to information given under section 158.

(6) If an agency making an election under subsection (2) fails to comply with subsection (3) or (4) it commits an offence.

(7) In this section “consumer” has the same meaning as in section 158.

Credit intermediaries

160A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part XI — Enforcement of Act

Enforcement authorities.

161

(1) The following authorities ( “enforcement authorities ”) have a duty to enforce this Act and regulations made under it—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in Great Britain, the local weights and measures authority,

(1A) Subsection (1) does not limit any function of the FCA in relation to the enforcement of this Act or regulations made under it.

(1B) For the investigatory powers available to a local weights and measures authority or the Department of Enterprise, Trade and Investment in Northern Ireland for the purposes of the duty in subsection (1), see Schedule 5 to the Consumer Rights Act 2015.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Every local weights and measures authority shall, whenever the FCA requires, report to it in such form and with such particulars as it requires on the exercise of their functions under this Act.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers of entry and inspection.

162

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation for loss.

163

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to make test purchases etc.

164

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Obstruction of authorised officers.

165

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of convictions and judgments to FCA.

166

Where a person is convicted of an offence or has a judgment given against him by or before any court in the United Kingdom and it appears to the court—

(a) having regard to the functions of the FCA under the Financial Services and Markets Act 2000 or this Act, that the conviction or judgment should be brought to the FCA's attention, and

(b) that it may not be brought to its attention unless arrangements for that purpose are made by the court,

the court may make such arrangements notwithstanding that the proceedings have been finally disposed of.

Penalties.

167

(1) An offence under a provision of this Act specified in column 1 of Schedule 1 is triable in the mode or modes indicated in column 3, and on conviction is punishable as indicated in column 4 (where a period of time indicates the maximum term of imprisonment, and a monetary amount indicates the maximum fine, for the offence in question).

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Defences.

168

(1) In any proceedings for an offence under this Act it is a defence for the person charged to prove—

(a) that his act or omission was due to a mistake, or to reliance on information supplied to him, or to an act or omission by another person, or to an accident or some other cause beyond his control, and

(b) that he took all reasonable precautions and exercised all due diligence to avoid such an act or omission by himself or any person under his control.

(2) If in any case the defence provided by subsection (1) involves the allegation that the act or omission was due to an act or omission by another person or to reliance on information supplied by another person, the person charged shall not, without leave of the court, be entitled to rely on that defence unless, within a period ending seven clear days before the hearing, he has served on the prosecutor a notice giving such information identifying or assisting in the identification of that other person as was then in his possession.

Offences by bodies corporate.

169

Where at any time a body corporate commits an offence under this Act with the consent or connivance of, or because of neglect by, any individual, the individual commits the like offence if at that time—

(a) he is a director, manager, secretary or similar officer of the body corporate, or

(b) he is purporting to act as such an officer, or

No further sanctions for breach of Act.

170

(1) A breach of any requirement made (otherwise than by any court) by or under this Act shall incur no civil or criminal sanction as being such a breach, except to the extent (if any) expressly provided by or under this Act or by or under the Financial Services and Markets Act 2000 by virtue of an order made under section 107 of the Financial Services Act 2012.

(2) In exercising its functions under this Act the FCA may take account of any matter appearing to it to constitute a breach of a requirement made by or under this Act, whether or not any sanction for that breach is provided by or under this Act and, if it is so provided, whether or not proceedings have been brought in respect of the breach.

(3) Subsection (1) does not prevent the grant of an injunction, or the making of an order of certiorari, mandamus or prohibition or as respects Scotland the grant of an interdict or of an order under section 91 of the Court of Session Act 1868 (order for specific performance of statutory duty).

Onus of proof in various proceedings.

171

(1) If an agreement contains a term signifying that in the opinion of the parties section 10(3)(b)(iii) does not apply to the agreement, it shall be taken not to apply unless the contrary is proved.

(2) It shall be assumed in any proceedings, unless the contrary is proved, that when a person initiated a transaction as mentioned in section 19(1)(c) he knew the principal agreement had been made, or contemplated that it might be made.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In proceedings brought by the creditor under a credit-token agreement—

(a) it is for the creditor to prove that the credit-token was lawfully supplied to the debtor, and was accepted by him, and

(b) if the debtor alleges that any use made of the credit-token was not authorised by him, it is for the creditor to prove either—

(i) that the use was so authorised, or

(ii) that the use occurred before the creditor had been given notice under section 84(3).

(5) In proceedings under section 50(1) in respect of a document received by a minor at any school or other educational establishment for minors, it is for the person sending it to him at that establishment to prove that he did not know or suspect it to be such an establishment.

(6) In proceedings under section 119(1) it is for the pawnee to prove that he had reasonable cause to refuse to allow the pawn to be redeemed.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statements by creditor or owner to be binding.

172

(1) A statement by a creditor or owner is binding on him if given under—

section 77(1),

section 78(1),

section 79(1),

section 97(1),

section 107(1)(c),

section 108(1)(c), or

section 109(1)(c),

(2) Where a trader—

(a) gives a customer a notice in compliance with section 103(1)(b), or

(b) gives a customer a notice under section 103(1) asserting that the customer is not indebted to him under an agreement,

the notice is binding on the trader.

(3) Where in proceedings before any court—

(a) it is sought to rely on a statement or notice given as mentioned in subsection (1) or (2), and

(b) the statement or notice is shown to be incorrect,

the court may direct such relief (if any) to be given to the creditor or owner from the operation of subsection (1) or (2) as appears to the court to be just.

Contracting-out forbidden.

173

(1) A term contained in a regulated agreement or linked transaction, or in any other agreement relating to an actual or prospective regulated agreement or linked transaction, is void if, and to the extent that, it is inconsistent with a provision for the protection of the debtor or hirer or his relative or any surety contained in this Act or in any regulation made under this Act.

(2) Where a provision specifies the duty or liability of the debtor or hirer or his relative or any surety in certain circumstances, a term is inconsistent with that provision if it purports to impose, directly or indirectly, an additional duty or liability on him in those circumstances.

(3) Notwithstanding subsection (1), a provision of this Act under which a thing may be done in relation to any person on an order of the court or the FCA only shall not be taken to prevent its being done at any time with that person’s consent given at that time, but the refusal of such consent shall not give rise to any liability.

Part XII — Supplemental

Restrictions on disclosure of information.

174

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Powers to require provision of information or documents etc.

174A

(1) Every power conferred on a relevant authority by or under this Act (however expressed) to require the provision or production of information or documents includes the power—

(a) to require information to be provided or produced in such form as the authority may specify, including, in relation to information recorded otherwise than in a legible form, in a legible form;

(b) to take copies of, or extracts from, any documents provided or produced by virtue of the exercise of the power;

(c) to require the person who is required to provide or produce any information or document by virtue of the exercise of the power—

(i) to state, to the best of his knowledge and belief, where the information or document is;

(ii) to give an explanation of the information or document;

(iii) to secure that any information provided or produced, whether in a document or otherwise, is verified in such manner as may be specified by the authority;

(iv) to secure that any document provided or produced is authenticated in such manner as may be so specified;

(d) to specify a time at or by which a requirement imposed by virtue of paragraph (c) must be complied with.

(2) Every power conferred on a relevant authority by or under this Act (however expressed) to inspect or to seize documents at any premises includes the power to take copies of, or extracts from, any documents inspected or seized by virtue of the exercise of the power.

(3) But a relevant authority has no power under this Act—

(a) to require another person to provide or to produce,

(b) to seize from another person, or

any information or document which the other person would be entitled to refuse to provide or produce in proceedings in the High Court on the grounds of legal professional privilege or (in Scotland) in proceedings in the Court of Session on the grounds of confidentiality of communications.

(4) In subsection (3) ‘communications’ means—

(a) communications between a professional legal adviser and his client;

(b) communications made in connection with or in contemplation of legal proceedings and for the purposes of those proceedings.

(5) In this section, “relevant authority” means an enforcement authority or an officer of an enforcement authority.

Duty of persons deemed to be agents.

175

Where under this Act a person is deemed to receive a notice or payment as agent of the creditor or owner under a regulated agreement, he shall be deemed to be under a contractual duty to the creditor or owner to transmit the notice, or remit the payment, to him forthwith.

Service of documents.

176

(1) A document to be served under this Act by one person ( “the server ”) on another person ( “the subject”) is to be treated as properly served on the subject if dealt with as mentioned in the following subsections.

(2) The document may be delivered or sent by an appropriate method to the subject, or addressed to him by name and left at his proper address.

(3) For the purposes of this Act, a document sent by post to, or left at, the address last known to the server as the address of a person shall be treated as sent by post to, or left at, his proper address.

(4) Where the document is to be served on the subject as being the person having any interest in land, and it is not practicable after reasonable inquiry to ascertain the subject’s name or address, the document may be served by—

(a) addressing it to the subject by the description of the person having that interest in the land (naming it), and

(b) delivering the document to some responsible person on the land or affixing it, or a copy of it, in a conspicuous position on the land.

(5) Where a document to be served on the subject as being a debtor, hirer or surety, or as having any other capacity relevant for the purposes of this Act, is served at any time on another person who—

(a) is the person last known to the server as having that capacity, but

(b) before that time had ceased to have it,

the document shall be treated as having been served at that time on the subject.

(6) Anything done to a document in relation to a person who (whether to the knowledge of the server or not) has died shall be treated for the purposes of subsection (5) as service of the document on that person if it would have been so treated had he not died.

(7) The following enactments shall not be construed as authorising service on the Public Trustee (in England and Wales) or the Probate Judge (in Northern Ireland) of any document which is to be served under this Act—

section 9 of the Administration of Estates Act 1925;

section 3 of the Administration of Estates Act (Northern Ireland) 1955.

(8) References in the preceding subsections to the serving of a document on a person include the giving of the document to that person.

Electronic transmission of documents

176A

(1) A document is transmitted in accordance with this subsection if–

(a) the person to whom it is transmitted agrees that it may be delivered to him by being transmitted to a particular electronic address in a particular electronic form,

(b) it is transmitted to that address in that form, and

(c) the form in which the document is transmitted is such that any information in the document which is addressed to the person to whom the document is transmitted is capable of being stored for future reference for an appropriate period in a way which allows the information to be reproduced without change.

(2) A document transmitted in accordance with subsection (1) shall, unless the contrary is proved, be treated for the purposes of this Act, except section 69, as having been delivered on the working day immediately following the day on which it is transmitted.

(3) In this section, “electronic address” includes any number or address used for the purposes of receiving electronic communications.

Saving for registered charges.

177

(1) Nothing in this Act affects the rights of a proprietor of a registered charge (within the meaning of the Land Registration Act 2002), who—

(a) became the proprietor under a transfer for valuable consideration without notice of any defect in the title arising (apart from this section) by virtue of this Act, or

(b) derives title from such a proprietor.

(2) Nothing in this Act affects the operation of section 104 of the Law of Property Act 1925 (protection of purchaser where mortgagee exercises power of sale).

(3) Subsection (1) does not apply to a proprietor carrying on a consumer credit business, a consumer hire business or a business of debt-collecting or debt administration .

(4) Where, by virtue of subsection (1), a land mortgage is enforced which apart from this section would be treated as never having effect, the original creditor or owner shall be liable to indemnify the debtor or hirer against any loss thereby suffered by him.

(5) In the application of this section to Scotland for subsections (1) to (3) there shall be substituted the following subsections—

(1) Nothing in this Act affects the rights of a creditor in a heritable security who— (a) became the creditor under a transfer for value without notice of any defect in the title arising (apart from this section) by virtue of this Act; or (b) derives title from such a creditor. (2) Nothing in this Act affects the operation of section 41 of the Conveyancing (Scotland) Act 1924 (protection of purchasers), or of that section as applied to standard securities by section 32 of the Conveyancing and Feudal Reform (Scotland) Act 1970. (3) Subsection (1) does not apply to a creditor carrying on a consumer credit business, a consumer hire business or a business of debt-collecting or debt administration .

(6) In the application of this section to Northern Ireland—

(a) any reference to the proprietor of a registered charge (within the meaning of the Land Registration Act 2002) shall be construed as a reference to the registered owner of a charge under the Local Registration of Title (Ireland) Act 1891 or Part IV of the Land Registration Act (Northern Ireland) 1970, and

(b) for the reference to section 104 of the Law of Property Act 1925 there shall be substituted a reference to section 21 of the Conveyancing and Law of Property Act 1881 and section 5 of the Conveyancing Act 1911.

Local Acts.

178

The Treasury or the Department of Commerce for Northern Ireland may by order make such amendments or repeals of any provision of any local Act as appears to the Treasury or, as the case may be, the Department, necessary or expedient in consequence of the replacement by this Act of the enactments relating to pawnbrokers and moneylenders.

Regulations, orders, etc.

Power to prescribe form etc. of secondary documents.

179

(1) Regulations may be made as to the form and content of credit-cards, trading-checks, receipts, vouchers and other documents or things issued by creditors, owners or suppliers under or in connection with regulated agreements or by other persons in connection with linked transactions, and may in particular—

(a) require specified information to be included in the pre-scribed manner in documents, and other specified material to be excluded;

(b) contain requirements to ensure that specified information is clearly brought to the attention of the debtor or hirer, or his relative, and that one part of a document is not given insufficient or excessive prominence compared with another.

(2) If a person issues any document or thing in contravention of regulations under subsection (1) then, as from the time of the contravention but without prejudice to anything done before it, this Act shall apply as if the regulated agreement had been improperly executed by reason of a contravention of regulations under section 60(1).

Power to prescribe form etc. of copies.

180

(1) Regulations may be made as to the form and content of documents to be issued as copies of any executed agreement, security instrument or other document referred to in this Act, and may in particular—

(a) require specified information to be included in the prescribed manner in any copy, and contain requirements to ensure that such information is clearly brought to the attention of a reader of the copy;

(b) authorise the omission from a copy of certain material contained in the original, or the inclusion of such material in condensed form.

(2) A duty imposed by any provision of this Act ... to supply a copy of any document—

(a) is not satisfied unless the copy supplied is in the prescribed form and conforms to the prescribed requirements;

(b) is not infringed by the omission of any material, or its inclusion in condensed form, if that is authorised by regulations;

and references in this Act to copies shall be construed accordingly.

(3) Regulations may provide that a duty imposed by this Act to supply a copy of a document referred to in an unexecuted agreement or an executed agreement shall not apply to documents of a kind specified in the regulations.

Power to alter monetary limits etc.

181

(1) The Treasury may by order made by statutory instrument amend, or further amend, any of the following provisions of this Act so as to reduce or increase a sum mentioned in that provision, namely, sections ... 17(1), . . . ... 70(6), 75(3)(b), 77(1), 78(1), 79(1), 84(1), 101(7)(a), 107(1), 108(1), 109(1), 110(1), ... . . . 140B(6), 155(1) and 158(1).

(2) An order under subsection (1) amending section ... 17(1), . . . ... 75(3)(b) . . . or 140B(6) shall be of no effect unless a draft of the order has been laid before and approved by each House of Parliament.

Regulations and orders.

182

(1) Any power of the Treasury to make regulations or orders under this Act, except the power conferred by sections ... 181 and 192 shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Where a power to make regulations or orders . . . is exercisable by the Treasury . . . by virtue of this Act, regulations or orders . . . made in the exercise of that power may—

(a) make different provision in relation to different cases or classes of case, and

(b) exclude certain cases or classes of case, and

(3) Regulations may provide that specified expressions, when used as described by the regulations, are to be given the prescribed meaning, notwithstanding that another meaning is intended by the person using them.

(4) Any power conferred on the Treasury by this Act to make orders includes power to vary or revoke an order so made.

Determinations etc. by FCA .

183

(1) The FCA may vary or revoke any determination made, or direction given, by it under this Act.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

Associates.

184

(1) A person is an associate of an individual if that person is—

(a) the individual’s husband or wife or civil partner,

(b) a relative of—

(i) the individual, or

(ii) the individual’s husband or wife or civil partner, or

(i) the individual, or

(ii) the individual’s husband or wife or civil partner.

(2) A person is an associate of any person with whom he is in partnership, and of the husband or wife or civil partner or a relative of any individual with whom he is in partnership.

(3) A body corporate is an associate of another body corporate—

(a) if the same person is a controller of both, or a person is a controller of one and persons who are his associates, or he and persons who are his associates, are controllers of the other; or

(b) if a group of two or more persons is a controller of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person of whom he is an associate.

(4) A body corporate is an associate of another person if that person is a controller of it or if that person and persons who are his associates together are controllers of it.

(5) In this section “relative” means brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant, . . . references to a husband or wife include a former husband or wife and a reputed husband or wife, and references to a civil partner include a former civil partner and a reputed civil partner; and for the purposes of this subsection a relationship shall be established as if any illegitimate child, step-child or adopted child of a person were the legitimate child of the relationship in question .

Agreement with more than one debtor or hirer.

185

(1) Where an actual or prospective regulated agreement has two or more debtors or hirers (not being a partnership or an unincorporated body of persons)—

(a) anything required by or under this Act to be done to or in relation to the debtor or hirer shall be done to or in relation to each of them; and

(b) anything done under this Act by or on behalf of one of them shall have effect as if done by or on behalf of all of them.

(1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Notwithstanding subsection (1)(a), where credit is provided under an agreement 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 given to him a notice (a ‘dispensing notice’) authorising him not to comply in the debtor'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 to the creditor until it is revoked by a further notice given to the creditor by the debtor.

(2B) But subsection (2) does not apply if (apart from this subsection) dispensing notices would be operative in relation to all of the debtors to whom the credit is provided.

(2C) Any dispensing notices operative in relation to an agreement shall cease to have effect if any of the debtors dies.

(2D) A dispensing notice which is operative in relation to an agreement shall be operative also in relation to any subsequent agreement which, in relation to the earlier agreement, is a modifying agreement.

(3) Subsection (1)(b) does not apply for the purposes of section 61(1)(a) . . . .

(4) Where a regulated agreement has two or more debtors or hirers (not being a partnership or an unincorporated body of persons), section 86 applies to the death of any of them.

(5) An agreement for the provision of credit, or the bailment or (in Scotland) the hiring of goods, to two or more persons jointly where—

(a) one or more of those persons is an individual, and

(b) one or more of them is not an individual ,

is a consumer credit agreement or consumer hire agreement if it would have been one had they all been individuals; and each person within paragraph (b) shall accordingly be included among the debtors or hirers under the agreement.

(6) Where subsection (5) applies, references in this Act to the signing of any document by the debtor or hirer shall be construed in relation to a body corporate within paragraph (b) of that subsection as referring to a signing on behalf of the body corporate.

Agreement with more than one creditor or owner.

186

Where an actual or prospective regulated agreement has two or more creditors or owners, anything required by or under this Act to be done to, or in relation to, or by, the creditor or owner shall be effective if done to, or in relation to, or by, any one of them.

Arrangements between creditor and supplier.

187

(1) A consumer credit agreement shall be treated as entered into under pre-existing arrangements between a creditor and a supplier if it is entered into in accordance with, or in furtherance of, arrangements previously made between persons mentioned in subsection (4)(a), (b) or (c).

(2) A consumer credit agreement shall be treated as entered into in contemplation of future arrangements between a creditor and a supplier if it is entered into in the expectation that arrangements will subsequently be made between persons mentioned in subsection (4)(a), (b) or (c) for the supply of cash, goods and services (or any of them) to be financed by the consumer credit agreement.

(3) Arrangements shall be disregarded for the purposes of subsection (1) or (2) if—

(a) they are arrangements for the making, in specified circumstances, of payments to the supplier by the creditor, and

(b) the creditor holds himself out as willing to make, in such circumstances, payments of the kind to suppliers generally.

(3A) Arrangements shall also be disregarded for the purposes of subsections (1) and (2) if they are arrangements for the electronic transfer of funds from a current account at a bank within the meaning of the Bankers’ Books Evidence Act 1879.

(4) The persons referred to in subsections (1) and (2) are—

(a) the creditor and the supplier;

(b) one of them and an associate of the other’s;

(5) Where the creditor is an associate of the supplier’s, the consumer credit agreement shall be treated, unless the contrary is proved, as entered into under pre-existing arrangements between the creditor and the supplier.

Definition of ‘default sum’

187A

(1) In this Act ‘default sum’ means, in relation to the debtor or hirer under a regulated agreement, a sum (other than a sum of interest) which is payable by him under the agreement in connection with a breach of the agreement by him.

(2) But a sum is not a default sum in relation to the debtor or hirer simply because, as a consequence of his breach of the agreement, he is required to pay it earlier than he would otherwise have had to.

Examples of use of new terminology.

188

(1) Schedule 2 shall have effect for illustrating the use of terminology employed in this Act.

(2) The examples given in Schedule 2 are not exhaustive.

(3) In the case of conflict between Schedule 2 and any other provision of this Act, that other provision shall prevail.

(4) The Treasury may by order amend Schedule 2 by adding further examples or in any other way.

Definitions.

189

(1) In this Act, unless the context otherwise requires—

“advertisement” includes every form of advertising, whether in a publication, by television or radio, by display of notices, signs, labels, showcards or goods, by distribution of samples, circulars, catalogues, price lists or other material, by exhibition of pictures, models or films, or in any other way, and references to the publishing of advertisements shall be construed accordingly;

“ancillary credit business” has the meaning given by section 145(1);

“antecedent negotiations” has the meaning given by section 56;

“appropriate method” means–post, ortransmission in the form of an electronic communication in accordance with section 176A(1);”

“assignment”, in relation to Scotland, means assignation;

“associate” shall be construed in accordance with section 184;

“authorised business overdraft agreement” means a debtor-creditor agreement which provides authorisation in advance for the debtor to overdraw on a current account, where the agreement is entered into by the debtor wholly or predominantly for the purposes of the debtor's business (see subsection (2A));

“authorised non-business overdraft agreement” means a debtor-creditor agreement which provides authorisation in advance for the debtor to overdraw on a current account where—the credit must be repaid on demand or within three months, andthe agreement is not entered into by the debtor wholly or predominantly for the purposes of the debtor's business (see subsection (2A));

. . .

“bill of sale” has the meaning given by section 4 of the Bills of Sale Act 1878 or, for Northern Ireland, by section 4 of the Bills of Sale (Ireland) Act 1879;

“building society” means a building society within the meaning of the Building Societies Act 1986;

“business” includes profession or trade, and references to a business apply subject to subsection (2);

“cancellable agreement” means a regulated agreement which, by virtue of section 67, may be cancelled by the debtor or hirer;

“canvass” shall be construed in accordance with sections 48 and 153;

“cash” includes money in any form;

“charity” means as respects England and Wales a charity registered under the Charities Act 2011 or an exempt charity (within the meaning of that Act), as respects Northern Ireland an institution or other organisation established for charitable purposes only ( “organisation ” including any persons administering a trust and “charitable ” being construed in the same way as if it were contained in the Income Tax Acts) and as respects Scotland a body entered in the Scottish Charity Register;

“conditional sale agreement” means an agreement for the sale of goods or land under which the purchase price or part of it is payable by instalments, and the property in the goods or land is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods or land) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled;

“consumer credit agreement” has the meaning given by section 8, and includes a consumer credit agreement which is cancelled under section 69(1), or becomes subject to section 69(2), so far as the agreement remains in force;

“consumer credit business” means any business being carried on by a person so far as it comprises or relates to—the provision of credit by him, orotherwise his being a creditor,under regulated consumer credit agreements;

“consumer hire business” means any business being carried on by a person so far as it comprises or relates to—the bailment or (in Scotland) the hiring of goods by him, orotherwise his being an owner,under regulated consumer hire agreements;

“consumer hire business” means any business so far as it comprises or relates to the bailment or (in Scotland) the hiring of goods under regulated consumer hire agreements;

“controller”, in relation to a body corporate, means a person—in accordance with whose directions or instructions the directors of the body corporate or of another body corporate which is its controller (or any of them) are accustomed to act, orwho, either alone or with any associate or associates, is entitled to exercise, or control the exercise of, one third or more of the voting power at any general meeting of the body corporate or of another body corporate which is its controller;

“copy” shall be construed in accordance with section 180;

. . .

“court” means in relation to England and Wales the county court, in relation to Scotland the sheriff court and in relation to Northern Ireland the High Court or the county court;

“credit” shall be construed in accordance with section 9;

“credit-broker” means a person carrying on a business of credit brokerage;

“credit brokerage” has the meaning given by section 145(2);

“credit information services” is to be read in accordance with section 145(7B).

“credit intermediary” has the meaning given by section 160A;

“credit limit” has the meaning given by section 10(2);

“creditor” means (except in relation to green deal plans: see instead section 189B(2)) the person providing credit under a consumer credit agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer credit agreement, includes the prospective creditor;

“credit reference agency” is to be read in accordance with section 145(8);

“credit-sale agreement” means an agreement for the sale of goods, under which the purchase price or part of it is payable by instalments, but which is not a conditional sale agreement;

“credit-token” has the meaning given by section 14(1);

“credit-token agreement” means a regulated agreement for the provision of credit in connection with the use of a credit-token;

“debt-adjusting” has the meaning given by section 145(5);

“debt administration” has the meaning given by section 145(7A);

“debt-collecting” has the meaning given by section 145(7);

“debt-counselling” has the meaning given by section 145(6);

“debtor” means (except in relation to green deal plans: see instead section 189B(3)) the individual receiving credit under a consumer credit agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer credit agreement includes the prospective debtor;

“debtor-creditor agreement” has the meaning given by section 13;

“debtor-creditor-supplier agreement” has the meaning given by section 12;

“default notice” has the meaning given by section 87(1);

“default sum” has the meaning given by section 187A;

“deposit” means ...any sum payable by a debtor or hirer by way of deposit or down-payment, or credited or to be credited to him on account of any deposit or down-payment, whether the sum is to be or has been paid to the creditor or owner or any other person, or is to be or has been discharged by a payment of money or a transfer or delivery of goods or by any other means;

“documents” includes information recorded in any form;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“electric line” has the meaning given by the Electricity Act 1989 or, for Northern Ireland, the Electricity (Northern Ireland) Order 1992

“electronic communication” means an electronic communication within the meaning of the Electronic Communications Act 2000 (c. 7)“

“embodies” and related words shall be construed in accordance with subsection (4);

“enforcement authority” has the meaning given by section 161(1);

“enforcement order” means an order under section 65(1), 105(7)(a) or (b), 111(2) or 124(1) or (2);

“executed agreement” means a document, signed by or on behalf of the parties, embodying the terms of a regulated agreement, or such of them as have been reduced to writing;

“FCA” means the Financial Conduct Authority;

“finance” means to finance wholly or partly, and “financed” and “refinanced” shall be construed accordingly;

“file” and “copy of the file” have the meanings given by section 158(5);

“fixed-sum credit” has the meaning given by section 10(1)(b);

“friendly society” means a society registered or treated as registered under the Friendly Societies Act 1974 or the Friendly Societies Act 1992 or a society within the meaning of the Friendly Societies Act (Northern Ireland) 1970;

“future arrangements” shall be construed in accordance with section 187;

“give” means deliver or send by an appropriate method to;

“goods” has the meaning given by section 61(1) of the Sale of Goods Act 1979;

“green deal plan” has the meaning given by section 1 of the Energy Act 2011;

“High Court” means Her Majesty’s High Court of Justice, or the Court of Session in Scotland or the High Court of Justice in Northern Ireland;

“hire-purchase agreement” means an agreement, other than a conditional sale agreement, under which—goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, andthe property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—the exercise of an option to purchase by that person,the doing of any other specified act by any party to the agreement,the happening of any other specified event;

“hirer” means the individual to whom goods are bailed or (in Scotland) hired under a consumer hire agreement, or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer hire agreement includes the prospective hirer;

“individual” includes—a partnership consisting of two or three persons not all of whom are bodies corporate; andan unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership;

“installation” means—the installing of any electric line or any gas or water pipe,the fixing of goods to the premises where they are to be used, and the alteration of premises to enable goods to be used on them,where it is reasonably necessary that goods should be constructed or erected on the premises where they are to be used, any work carried out for the purpose of constructing or erecting them on those premises;

. . .

“judgment” includes an order or decree made by any court;

“land”, includes an interest in land, and in relation to Scotland includes heritable subjects of whatever description;

“land improvement company” means an improvement company as defined by section 7 of the Improvement of Land Act 1899;

“land mortgage” includes any security charged on land;

“linked transaction” has the meaning given by section 19(1);

“local authority”, in relation to England . . ., means . . . , a county council, a London borough council, a district council, the Common Council of the City of London, or the Council of the Isles of Scilly in relation to Wales means a county council or a county borough council,, and in relation to Scotland, means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994, and, in relation to Northern Ireland, means a district council;

. . .

“modifying agreement” has the meaning given by section 82(2);

“mortgage”, in relation to Scotland, includes any heritable security;

“multiple agreement” has the meaning given by section 18(1);

“negotiator” has the meaning given by section 56(1);

“non-commercial agreement” means a consumer credit agreement or a consumer hire agreement not made by the creditor or owner in the course of a business carried on by him;

“notice” means notice in writing;

“notice of cancellation” has the meaning given by section 69(1);

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