Legalize / United Kingdom / Public General Act

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

(b) requiring the trader to give the customer a notice, signed by or on behalf of the trader, confirming that those statements are correct,

the trader shall, within the prescribed period after receiving the notice, either comply with it or serve on the customer a counter-notice stating that, as the case may be, he disputes the correctness of the notice or asserts that the customer is not indebted to him under the agreement.

(2) Where the trader disputes the correctness of the notice he shall give particulars of the way in which he alleges it to be wrong.

(3) Subsection (1) does not apply in relation to any agreement if the trader has previously complied with that subsection on the service of a notice under it with respect to that agreement.

(4) Subsection (1) does not apply to a non-commercial agreement or to a regulated deferred payment credit agreement.

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

(6) A breach of the duty imposed by subsection (1) is actionable as a breach of statutory duty.

Goods not to be treated as subject to landlord’s hypothec in Scotland.

104

Goods comprised in a hire-purchase agreement or goods comprised in a conditional sale agreement which have not become vested in the debtor shall not be treated in Scotland as subject to the landlord’s hypothec—

(a) during the period between the service of a default notice in respect of the goods and the date on which the notice expires or is earlier complied with; or

(b) if the agreement is enforceable on an order of the court only, during the period between the commencement and termination of an action by the creditor to enforce the agreement.

Part VIII — Security

General

Form and content of securities.

105

(1) Any security provided in relation to a regulated agreement shall be expressed in writing.

(2) Regulations may prescribe the form and content of documents ( “security instruments ”) to be made in compliance with subsection (1).

(3) Regulations under subsection (2) 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 surety, and that one part of a document is not given insufficient or excessive prominence compared with another.

(4) A security instrument is not properly executed unless—

(a) a document in the prescribed form, itself containing all the prescribed terms and conforming to regulations under subsection (2), is signed in the prescribed manner by or on behalf of the surety, and

(b) the document embodies all the terms of the security, other than implied terms, and

(c) the document, when presented or sent for the purpose of being signed by or on behalf of the surety, is in such state that its terms are readily legible, and

(d) when the document is presented or sent for the purpose of being signed by or on behalf of the surety there is also presented or sent a copy of the document.

(5) A security instrument is not properly executed unless—

(a) where the security is provided after, or at the time when, the regulated agreement is made, a copy of the executed agreement, together with a copy of any other document referred to in it, is given to the surety at the time the security is provided, or

(b) where the security is provided before the regulated agreement is made, a copy of the executed agreement, together with a copy of any other document referred to in it, is given to the surety within seven days after the regulated agreement is made.

(6) Subsection (1) does not apply to a security provided by the debtor or hirer.

(7) If—

(a) in contravention of subsection (1) a security is not expressed in writing, or

(b) a security instrument is improperly executed,

the security, so far as provided in relation to a regulated agreement, is enforceable against the surety on an order of the court only.

(8) If an application for an order under subsection (7) is dismissed (except on technical grounds only) section 106 (ineffective securities) shall apply to the security.

(9) Regulations under section 60(1) shall include provision requiring documents embodying regulated agreements also to embody any security provided in relation to a regulated agreement by the debtor or hirer.

Ineffective securities.

106

Where, under any provision of this Act, this section is applied to any security provided in relation to a regulated agreement, then, subject to section 177 (saving for registered charges)—

(a) the security, so far as it is so provided, shall be treated as never having effect;

(b) any property lodged with the creditor or owner solely for the purposes of the security as so provided shall be returned by him forthwith;

(c) the creditor or owner shall take any necessary action to remove or cancel an entry in any register, so far as the entry relates to the security as so provided; and

(d) any amount received by the creditor or owner on realisation of the security shall, so far as it is referable to the agreement, be repaid to the surety.

Duty to give information to surety under fixed-sum credit agreement.

107

(1) The creditor under a regulated agreement for fixed-sum credit in relation to which security is provided, within the prescribed period after receiving a request in writing to that effect from the surety and payment of a fee of £1, shall give to the surety (if a different person from the debtor)—

(a) a copy of the executed agreement (if any) and of any other document referred to in it;

(b) a copy of the security instrument (if any); and

(c) a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—

(i) the total sum paid under the agreement by the debtor,

(ii) the total sum which has become payable under the agreement by the debtor but remains unpaid, and the various amounts comprised in that total sum, with the date when each became due, and

(iii) the total sum which is to become payable under the agreement by the debtor, and the various amounts comprised in that total sum, with the date, or mode of determining the date, when each becomes due.

(2) If the creditor possesses insufficient information to enable him to ascertain the amounts and dates mentioned in subsection (1)(c)(iii), he shall be taken to comply with that sub-paragraph if his statement under subsection (1)(c) gives the basis on which, under the regulated agreement, they would fall to be ascertained.

(3) Subsection (1) does not apply to—

(a) an agreement under which no sum is, or will or may become, payable by the debtor, or

(b) a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

(4) If the creditor under an agreement fails to comply with subsection (1)—

(a) he is not entitled, while the default continues, to enforce the security, so far as provided in relation to the agreement; . . .

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

(5) This section does not apply to a non-commercial agreement.

Duty to give information to surety under running-account credit agreement.

108

(1) The creditor under a regulated agreement for running-account credit in relation to which security is provided, within the prescribed period after receiving a request in writing to that effect from the surety and payment of a fee of £1, shall give to the surety (if a different person from the debtor)—

(a) a copy of the executed agreement (if any) and of any other document referred to in it;

(b) a copy of the security instrument (if any); and

(c) a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—

(i) the state of the account, and

(ii) the amount, if any, currently payable under the agreement by the debtor to the creditor, and

(iii) the amounts and due dates of any payments which, if the debtor does not draw further on the account, will later become payable under the agreement by the debtor to the creditor.

(2) If the creditor possesses insufficient information to enable him to ascertain the amounts and dates mentioned in subsection (1)(c)(iii), he shall be taken to comply with that sub-paragraph if his statement under subsection (1)(c) gives the basis on which, under the regulated agreement, they would fall to be ascertained.

(3) Subsection (1) does not apply to—

(a) an agreement under which no sum is, or will or may become, payable by the debtor, or

(b) a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

(4) If the creditor under an agreement fails to comply with subsection (1)—

(a) he is not entitled, while the default continues, to enforce the security, so far as provided in relation to the agreement; . . .

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

(5) This section does not apply to a non-commercial agreement.

Duty to give information to surety under consumer hire agreement.

109

(1) The owner under a regulated consumer hire agreement in relation to which security is provided, within the prescribed period after receiving a request in writing to that effect from the surety and payment of a fee of £1, shall give to the surety (if a different person from the hirer)—

(a) a copy of the executed agreement and of any other document referred to in it;

(b) a copy of the security instrument (if any); and

(c) a statement signed by or on behalf of the owner showing, according to the information to which it is practicable for him to refer, the total sum which has become payable under the agreement by the hirer but remains unpaid and the various amounts comprised in that total sum, with the date when each became due.

(2) Subsection (1) does not apply to—

(a) an agreement under which no sum is, or will or may become, payable by the hirer, or

(b) a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.

(3) If the owner under an agreement fails to comply with subsection (1)—

(a) he is not entitled, while the default continues, to enforce the security, so far as provided in relation to the agreement; . . .

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

(4) This section does not apply to a non-commercial agreement.

Duty to give information to debtor or hirer.

110

(1) The creditor or owner under a regulated agreement, within the prescribed period after receiving a request in writing to that effect from the debtor or hirer and payment of a fee of £1, shall give the debtor or hirer a copy of any security instrument executed in relation to the agreement after the making of the agreement.

(2) Subsection (1) does not apply to—

(a) a non-commercial agreement, or

(b) an agreement under which no sum is, or will or may become, payable by the debtor or hirer, or

(c) a request made less than one month after a previous request under subsection (1) relating to the same agreement was complied with.

(3) If the creditor or owner under an agreement fails to comply with subsection (1)—

(a) he is not entitled, while the default continues, to enforce the security (so far as provided in relation to the agreement); . . .

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

Duty to give surety copy of default etc. notice.

111

(1) When a default notice or a notice under section 76(1) or 98(1) is served on a debtor or hirer, a copy of the notice shall be served by the creditor or owner on any surety (if a different person from the debtor or hirer).

(2) If the creditor or owner fails to comply with subsection (1) in the case of any surety, the security is enforceable against the surety (in respect of the breach or other matter to which the notice relates) on an order of the court only.

Realisation of securities.

112

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

Act not to be evaded by use of security.

113

(1) Where a security is provided in relation to an actual or prospective regulated agreement, the security shall not be enforced so as to benefit the creditor or owner, directly or indirectly, to an extent greater (whether as respects the amount of any payment or the time or manner of its being made) than would be the case if the security were not provided and any obligations of the debtor or hirer, or his relative, under or in relation to the agreement were carried out to the extent (if any) to which they would be enforced under this Act.

(2) In accordance with subsection (1), where a regulated agreement is enforceable on an order of the court or the FCA only, any security provided in relation to the agreement is enforceable (so far as provided in relation to the agreement) where such an order has been made in relation to the agreement, but not otherwise.

(3) Where—

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

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

(c) in relation to any agreement an application for an order under section 65(1) or 124(1) or a notice under section 28A of the Financial Services and Markets Act 2000 is dismissed (except on technical grounds only), or

(d) a declaration is made by the court under section 142(1) (refusal of enforcement order) as respects any regulated agreement,

section 106 shall apply to any security provided in relation to the agreement.

(4) Where subsection (3)(d) applies and the declaration relates to a part only of the regulated agreement, section 106 shall apply to the security only so far as it concerns that part.

(5) In the case of a cancelled agreement, the duty imposed on the debtor or hirer by section 71 or 72 shall not be enforceable before the creditor or owner has discharged any duty imposed on him by section 106 (as applied by subsection (3)(a)).

(6) If the security is provided in relation to a prospective agreement or transaction, the security shall be enforceable in relation to the agreement or transaction only after the time (if any) when the agreement is made; and until that time the person providing the security shall be entitled, by notice to the creditor or owner, to require that section 106 shall thereupon apply to the security.

(7) Where an indemnity or guarantee is given in a case where the debtor or hirer is a minor, or an indemnity is given in a case where he is otherwise not of full capacity, the reference in subsection (1) to the extent to which his obligations would be enforced shall be read in relation to the indemnity or guarantee as a reference to the extent to which theythose obligations would be enforced if he were of full capacity.

(8) Subsections (1) to (3) also apply where a security is provided in relation to an actual or prospective linked transaction, and in that case—

(a) references to the agreement shall be read as references to the linked transaction, and

(b) references to the creditor or owner shall be read as references to any person (other than the debtor or hirer, or his relative) who is a party, or prospective party, to the linked transaction.

Pledges

Pawn-receipts.

114

(1) At the time he receives the article, a person who takes any article in pawn under a regulated agreement shall give to the person from whom he receives it a receipt in the prescribed form (a “pawn-receipt ”).

(2) A person who takes any article in pawn from an individual whom he knows to be, or who appears to be and is, a minor commits an offence.

(3) This section and sections 117 to 122 do not apply to—

(a) a pledge of documents of title or of bearer bonds, or

(b) a non-commercial agreement.

Penalty for failure to supply copies of pledge agreement, etc.

115

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

Redemption period.

116

(1) A pawn is redeemable at any time within six months after it was taken.

(2) Subject to subsection (1), the period within which a pawn is redeemable shall be the same as the period fixed by the parties for the duration of the credit secured by the pledge, or such longer period as they may agree.

(3) If the pawn is not redeemed by the end of the period laid down by subsections (1) and (2) (the “redemption period ”), it nevertheless remains redeemable until it is realised by the pawnee under section 121 except where under section 120(1)(a) the property in it passes to the pawnee.

(4) No special charge shall be made for redemption of a pawn after the end of the redemption period, and charges in respect of the safe keeping of the pawn shall not be at a higher rate after the end of the redemption period than before.

Redemption procedure.

117

(1) On surrender of the pawn-receipt, and payment of the amount owing, at any time when the pawn is redeemable, the pawnee shall deliver the pawn to the bearer of the pawn-receipt.

(2) Subsection (1) does not apply if the pawnee knows or has reasonable cause to suspect that the bearer of the pawn-receipt is neither the owner of the pawn nor authorised by the owner to redeem it.

(3) The pawnee is not liable to any person in tort or delict for delivering the pawn where subsection (1) applies, or refusing to deliver it where the person demanding delivery does not comply with subsection (1) or, by reason of subsection (2), subsection (1) does not apply.

Loss etc. of pawn-receipt.

118

(1) A person (the “claimant ”) who is not in possession of the pawn-receipt but claims to be the owner of the pawn, or to be otherwise entitled or authorised to redeem it, may do so at any time when it is redeemable by tendering to the pawnee in place of the pawn-receipt—

(a) a statutory declaration made by the claimant in the pre-scribed form, and with the prescribed contents, or

(b) where the pawn is security for fixed-sum credit not exceeding £75 or running-account credit on which the credit limit does not exceed £75, and the pawnee agrees, a statement in writing in the prescribed form, and with the prescribed contents, signed by the claimant.

(2) On compliance by the claimant with subsection (1), section 117 shall apply as if the declaration or statement were the pawn-receipt, and the pawn-receipt itself shall become inoperative for the purposes of section 117.

Unreasonable refusal to deliver pawn.

119

(1) If a person who has taken a pawn under a regulated agreement refuses without reasonable cause to allow the pawn to be redeemed, he commits an offence.

(2) On the conviction in England or Wales of a pawnee under subsection (1) where the offence does not amount to theft, Chapter 3 of Part 7 of the Sentencing Code (restitution orders) shall apply as if the pawnee had been convicted of stealing the pawn.

(3) On the conviction in Northern Ireland of a pawnee under subsection (1) where the offence does not amount to theft, section 27 (orders for restitution) of the Theft Act (Northern Ireland) 1969, and any provision of the Theft Act (Northern Ireland) 1969 relating to that section, shall apply as if the pawnee had been convicted of stealing the pawn.

Consequence of failure to redeem.

120

(1) If at the end of the redemption period the pawn has not been redeemed—

(a) notwithstanding anything in section 113, the property in the pawn passes to the pawnee where

(i) the redemption period is six months,

(ii) the pawn is security for fixed-sum credit not exceeding £75 or running-account credit on which the credit limit does not exceed £75, and

(iii) the pawn was not immediately before the making of the regulated consumer credit agreement a pawn under another regulated consumer credit agreement in respect of which the debtor has discharged his indebtedness in part under section 94(3); or

(b) in any other case the pawn becomes realisable by the pawnee.

(2) Where the debtor or hirer is entitled to apply to the court for a time order under section 129, subsection (1) shall apply with the substitution, for “at the end of the redemption period ” of “after the expiry of five days following the end of the redemption period ”.

Realisation of pawn.

121

(1) When a pawn has become realisable by him, the pawnee may sell it, after giving to the pawnor (except in such cases as may be prescribed) not less than the prescribed period of notice of the intention to sell, indicating in the notice the asking price and such other particulars as may be prescribed.

(2) Within the prescribed period after the sale takes place, the pawnee shall give the pawnor the prescribed information in writing as to the sale, its proceeds and expenses.

(3) Where the net proceeds of sale are not less than the sum which, if the pawn had been redeemed on the date of the sale, would have been payable for its redemption, the debt secured by the pawn is discharged and any surplus shall be paid by the pawnee to the pawnor.

(4) Where subsection (3) does not apply, the debt shall be treated as from the date of sale as equal to the amount by which the net proceeds of sale fall short of the sum which would have been payable for the redemption of the pawn on that date.

(5) In this section the “net proceeds of sale” is the amount realised (the “gross amount ”) less the expenses (if any) of the sale.

(6) If the pawnor alleges that the gross amount is less than the true market value of the pawn on the date of sale, it is for the pawnee to prove that he and any agents employed by him in the sale used reasonable care to ensure that the true market value was obtained, and if he fails to do so subsections (3) and (4) shall have effect as if the reference in subsection (5) to the gross amount were a reference to the true market value.

(7) If the pawnor alleges that the expenses of the sale were unreasonably high, it is for the pawnee to prove that they were reasonable, and if he fails to do so subsections (3) and (4) shall have effect as if the reference in subsection (5) to expenses were a reference to reasonable expenses.

Order in Scotland to deliver pawn.

122

(1) As respects Scotland where—

(a) a pawn is either—

(i) an article which has been stolen, or

(ii) an article which has been obtained by fraud, and a person is convicted of any offence in relation to the theft or, as the case may be, the fraud; or

(b) a person is convicted of an offence under section 119(1),

the court by which that person is so convicted may order delivery of the pawn to the owner or the person otherwise entitled thereto.

(2) A court making an order under subsection (1)(a) for delivery of a pawn may make the order subject to such conditions as to payment of the debt secured by the pawn as it thinks fit.

Negotiable instruments

Restrictions on taking and negotiating instruments.

123

(1) A creditor or owner shall not take a negotiable instrument, other than a bank note or cheque, in discharge of any sum payable—

(a) by the debtor or hirer under a regulated agreement, or

(b) by any person as surety in relation to the agreement.

(2) The creditor or owner shall not negotiate a cheque taken by him in discharge of a sum payable as mentioned in subsection (1) except to a banker (within the meaning of the Bills of Exchange Act 1882).

(3) The creditor or owner shall not take a negotiable instrument as security for the discharge of any sum payable as mentioned in subsection (1).

(4) A person takes a negotiable instrument as security for the discharge of a sum if the sum is intended to be paid in some other way, and the negotiable instrument is to be presented for payment only if the sum is not paid in that way.

(5) This section does not apply where the regulated agreement is a non-commercial agreement.

(6) The Treasury may by order provide that this section shall not apply where the regulated agreement has a connection with a country outside the United Kingdom.

Consequences of breach of s. 123.

124

(1) After any contravention of section 123 has occurred in relation to a sum payable as mentioned in section 123(1)(a), the agreement under which the sum is payable is enforceable against the debtor or hirer on an order of the court only.

(2) After any contravention of section 123 has occurred in relation to a sum payable by any surety, the security is enforceable on an order of the court only.

(3) Where an application for an order under subsection (2) is dismissed (except on technical grounds only) section 106 shall apply to the security.

Holders in due course.

125

(1) A person who takes a negotiable instrument in contravention of section 123(1) or (3) is not a holder in due course, and is not entitled to enforce the instrument.

(2) Where a person negotiates a cheque in contravention of section 123(2), his doing so constitutes a defect in his title within the meaning of the Bills of Exchange Act 1882.

(3) If a person mentioned in section 123(1)(a) or (b) ( “the protected person ”) becomes liable to a holder in due course of an instrument taken from the protected person in contravention of section 123(1) or (3), or taken from the protected person and negotiated in contravention of section 123(2), the creditor or owner shall indemnify the protected person in respect of that liability.

(4) Nothing in this Act affects the rights of the holder in due course of any negotiable instrument.

Land mortgages

Enforcement of land mortgages.

126

(1) A land mortgage securing an agreement of one the following types is enforceable (so far as is provided in relation to the agreement) on an order of the court only—

(a) a regulated agreement;

(b) a regulated mortgage contract;

(c) a consumer credit agreement which would, but for article 60D of the Regulated Activities Order (exempt agreements: exemption relating to the purchase of land for non-residential purposes), be a regulated agreement.

(2) Subject to section 140A(5) (unfair relationships between creditors and debtors), a regulated mortgage contract which would, but for article 60C(2) of the Regulated Activities Order (exempt agreements: exemption relating to the nature of the agreement), be a regulated agreement is to be treated for the purposes of Part 9 (judicial control) as if it were a regulated agreement.

(3) In this section, “regulated mortgage contract” has the meaning given by article 61(3) of the Regulated Activities Order (regulated mortgage contracts).

Part IX — Judicial Control

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

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

When bargains are extortionate.

138

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

Reopening of extortionate agreements.

139

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

Interpretation of sections 137 to 139.

140

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

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

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

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

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

...

Application of Part III.

147

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

Agreement for services of unlicensed trader.

148

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

Regulated agreements made on introductions by unlicensed credit-broker.

149

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

Appeals to Secretary of State against licensing decisions.

150

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

Seeking business

Advertisements.

151

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

Application of sections 52 to 54 to credit brokerage etc.

152

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

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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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