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The Consumer Credit (Exempt Agreements) Order 1989

Type Statutory-Instrument
Publication 1989-05-19
State In force
Department Queen's Printer of Acts of Parliament
Source legislation.gov.uk
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Made: 19th May 1989

Laid before Parliament: 24th May 1989

Coming into force: 19th June 1989

The Secretary of State, after consulting in accordance with subsections (3) and (9) of section 16 of the Consumer Credit Act 1974[^f00001] with the persons therein referred to, in exercise of the powers conferred on him by sections 16(1) and (4) to (6) and 182(2) and (4) of that Act and of all other powers enabling him in that behalf, hereby makes the following Order:

Citation, commencement, interpretation and revocation

1

and references to the total charge for credit and the rate thereof are respectively references to the total charge for credit and the rate thereof calculated in accordance with the Consumer Credit (Total Charge for Credit) Regulations 1980[^f00002].

Exemption of certain consumer credit agreements secured on land

2

being, in either case, an agreement relating to the land referred to in the said head (iii) and secured by a land mortgage on that land; or

Exemption of certain consumer credit agreements by reference to the number of payments to be made by the debtor

3

not being, in either case, an agreement of a description specified in paragraph (2) below; and in this sub-paragraph, “payment” means a payment comprising an amount in respect of credit with or without any other amount;

and the number of payments to be made by the debtor does not exceed twelve; and in this sub-paragraph “payment” has the same meaning as it has in paragraph (1)(b) above; and

and the number of payments to be made by the debtor does not exceed twelve; and in this sub-paragraph, “payment” has the same meaning as it has in sub-paragraph (1)(b) above.

Exemption of certain consumer credit agreements by reference to the rate of the total charge for credit

4

and in respect of which the rate of the total charge for credit does not exceed the rate referred to in paragraph (5) below;

and for the purposes of this sub-paragraph, “interest” means interest at a rate determined in accordance with the formula set out in paragraph (1) of regulation 7 of the Consumer Credit (Total Charge for Credit) Regulations 1980[^f00007], and in that formula as applied by this paragraph “period rate of charge” has the meaning assigned to it in paragraph (2) of that regulation.

after the relevant date of the agreement within the meaning of regulation 1(2) of those Regulations.

and which do not provide for an increase in, or permit the creditor to increase, the rate or amount of any item mentioned in paragraph (2) above in any way other than those permitted by either or both of sub-paragraphs (a) or (b) of this paragraph.

Exemption of certain consumer credit agreements having a connection with a country outside the United Kingdom

5

The Act shall not regulate a consumer credit agreement made—

Exemption of certain consumer hire agreements

6

The Act shall not regulate a consumer hire agreement where the owner is a body corporate authorised by or under any enactment to supply electricity or water and the subject of the agreement is a meter or metering equipment used or to be used in connection with the supply of electricity or water, as the case may be.

SCHEDULE 1 — BODIES WHOSE AGREEMENTS OF THE SPECIFIED DESCRIPTION ARE EXEMPT AGREEMENTS

PART I — insurance companies

friendly societies

charities

PART II

Bodies Corporate Description of Agreement and Enactments
land improvement companies land improvement companies
The Lands Improvement Company Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to— the Lands Improvement Company’s Acts 1853 to 1969[^f00008]; or the Improvement of Land Acts 1864 and 1899[^f00009].
bodies corporate named or specifically referred to in a public general act bodies corporate named or specifically referred to in a public general act
united kingdom united kingdom
The Agricultural Mortgage Corporation PLC Agreements of a description falling within section 16(2) of the Act, being agreements made for a purpose consistent with the principal objects of that body set out in section 1(1)(a) and (b) of the Agricultural Credits Act 1928[^f00010].
Commission for the New Towns Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to section 132(1) of the Housing Act 1985[^f00011], or falling within article 2(2)(a) to (c), being agreements made pursuant to section 36 of the New Towns Act 1981[^f00012].
The Eastern Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947[^f00013].
The Electricity Council Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Council and employees or prospective employees of the Council pursuant to section 2(5) of the Electricity Act 1947, as applied in relation to the Council by section 3(6) of the Electricity Act 1957[^f00014].
The London Docklands Development Corporation Agreements of a description falling within article 2(2)(a) to (c), being agreements made pursuant to section 136 of the Local Government, Planning and Land Act 1980[^f00015].
The London Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947.
The North Eastern Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947.
The Scottish Agricultural Securities Corporation plc Agreements of a description falling within section 16(2) of the Act, being agreements made for a purpose consistent with the principal objects of that body set out in section 1(1)(a) and (b) of the Agricultural Credits (Scotland) Act 1929[^f00016].
Sea Fish Industry Authority Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to section 3(1)(e) and (f) of the Fisheries Act 1981[^f00017].
The South Eastern Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947.
The South Western Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947.
The Southern Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947.
The Yorkshire Electricity Board Agreements of a description falling within article 2(2)(a) to (c), being agreements made between the Board and employees or prospective employees of the Board pursuant to section 2(5) of the Electricity Act 1947.
northern ireland northern ireland
Eastern Health and Social Services Board Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to article 59 of and Schedule 9 to the Health and Personal Social Services (Northern Ireland) Order 1972[^f00018].
Northern Health and Social Services Board Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to article 59 of and Schedule 9 to the Health and Personal Social Services (Northern Ireland) Order 1972.
Southern Health and Social Services Board Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to article 59 of and Schedule 9 to the Health and Personal Social Services (Northern Ireland) Order 1972.
Western Health and Social Services Board Agreements of a description falling within section 16(2) of the Act, being agreements made pursuant to article 59 of and Schedule 9 to the Health and Personal Social Services (Northern Ireland) Order 1972.

PART III — bodies corporate named or specifically referred to in an order made under section 156(4), 444(1) or 447(2)(a) of the housing act 1985

PART IV — creditors whose agreements are exempt under paragraph (b) of article 5, subject to the provisions of that paragraph

SCHEDULE 2

Orders revoked References
The Consumer Credit (Exempt Agreements) (No. 2) Order 1985 S.I. 1985/757
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment) Order 1985 S.I. 1985/1736
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment No. 2) Order 1985 S.I. 1985/1918
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment) Order 1986 S.I. 1986/1105
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment No. 2) Order 1986 S.I. 1986/2186
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment) Order 1987 S.I. 1987/1578
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment) Order 1988 S.I. 1988/707
The Consumer Credit (Exempt Agreements) (No. 2) (Amendment No. 2) Order 1988 S.I. 1988/991

Signed

Francis Maude — Parliamentary Under-Secretary of State, — Department of Trade and Industry — 19th May 1989

Explanatory note

(This note is not part of the Order)

This Order consolidates the Consumer Credit (Exempt Agreements) (No. 2) Order 1985 as amended, which provides that certain consumer credit and consumer hire agreements shall be exempt agreements for the purposes of the Consumer Credit Act 1974.

The Order provides that the following consumer credit agreements are exempt agreements:—

The Order also provides that consumer hire agreements are exempt agreements where the owner is a body corporate authorised by statute to supply electricity or water and the subject of the agreement is a meter or metering equipment used in connection with that supply (Article 6).

Article 3 (1)(a)(i) amends the previous Order to exempt agreements which are repaid by a maximum of 4 payments in a period not exceeding 12 months from the date of the agreement, and brings the provision into line with Council Directive [87/102/EEC](https://www.legislation.gov.uk/european/directive/1987/0102) (O.J. L42, 12.2.1987, p. 42).

Eleven further bodies are included in Schedule 1; one is deleted, and the names of two are amended.

Schedule 2 lists the Orders revoked by this Order.

The text of the Federal Credit Union Act referred to in Part IV of Schedule 1 is available for inspection by prior arrangement at the Department of Trade and Industry (Overseas Trade Division 2), 1 Victoria Street, London SW1H 0ET.

Footnotes

[^f00001]: 1974 c. 39; section 16 was amended by the Employment Protection Act 1975 (c. 71), Schedule 18, the Telecommunications Act 1984 (c. 12), Schedule 4, paragraph 60, the Building Societies Act 1986 (c. 53), Schedule 18, the Housing and Planning Act 1986 (c. 63), section 22, the Banking Act 1987 (c. 22), section 88, the Housing (Scotland) Act 1987 (c. 26), Schedule 23, paragraph 21 and the Housing Act 1988 (c. 50), Schedule 17, paragraph 20.

[^f00002]: S.I. 1980/51, amended by S.I. 1985/1192, 1989/596.

[^f00003]: 1986 c. 53.

[^f00004]: 1987 c. 22.

[^f00005]: 1985 c. 69; section 4(3) was amended by the insertion of paragraph (dd) by the Housing and Planning Act 1986 (c. 63), section 19.

[^f00006]: S.I. 1981/156 (N.I.3).

[^f00007]: S.I. 1980/51, amended by S.I. 1985/1192, 1989/596.

[^f00008]: 1853 c.cliv, 1855 c.lxxxiv, 1859 c. lxxxii, 1863 c.cxl, 1920 c.xi, 1969 c.xxv.

[^f00009]: 1864 c. 114, 1899 c. 46.

[^f00010]: 1928 c. 43.

[^f00011]: 1985 c. 68.

[^f00012]: 1981 c. 64; section 36 was amended by the New Towns and Urban Development Corporations Act 1985 (c. 5), section 1, Schedule 3, paragraph 4, and Schedule 4.

[^f00013]: 1947 c. 54.

[^f00014]: 1957 c. 48.

[^f00015]: 1980 c. 65.

[^f00016]: 1929 c. 13.

[^f00017]: 1981 c. 29.

[^f00018]: S.I. 1972/1265 (N.I.14).

[^f00019]: Chapter 14 of Title 12 of the United States Code (June 26, 1934, ch 750 §1, 48 Stat. 1216; Sept 22, 1959, pub L.86–354, §1, 73, Stat. 628).

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