Law

Consumer Credit Act 1974

United Kingdom · statute

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In force since 2026-09-30, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 206 provisions
  1. Title and introductory text
  2. 8 Consumer credit agreements.
  3. 9 Meaning of credit.
  4. 10 Running-account credit and fixed-sum credit.
  5. 11 Restricted-use credit and unrestricted-use credit.
  6. 12 Debtor-creditor supplier agreements.
  7. 13 Debtor-creditor agreements.
  8. 14 Credit-token agreements.
  9. 15 Consumer hire agreements.
  10. 16 Exempt agreements.
  11. 16A Exemption relating to high net worth debtors and hirers
  12. 16B Exemption relating to businesses
  13. 16C Exemption relating to investment properties
  14. 17 Small agreements.
  15. 18 Multiple agreements.
  16. 19 Linked transactions.
  17. 20 Total charge for credit
  18. 43 Advertisements to which Part IV applies.
  19. 44 Form and content of advertisements.
  20. 45 Prohibition of advertisement where goods etc. not sold for cash.
  21. 46 False or misleading advertisements.
  22. 47 Advertising infringements.
  23. 48 Definition of canvassing off trade premises (regulated agreements).
  24. 49 Prohibition of canvassing debtor-creditor agreements off trade premises.
  25. 50 Circulars to minors.
  26. 51 Prohibition of unsolicited credit-tokens.
  27. 52 Quotations.
  28. 53 Duty to display information.
  29. 54 Conduct of business regulations.
  30. 55 Disclosure of information.
  31. 55A Pre-contractual explanations etc
  32. 55B Assessment of creditworthiness
  33. 55C Copy of draft consumer credit agreement
  34. 56 Antecedent negotiations.
  35. 57 Withdrawal from prospective agreement.
  36. 58 Opportunity for withdrawal from prospective land mortgage.
  37. 59 Agreement to enter future agreement void.
  38. 60 Form and content of agreements.
  39. 61 Signing of agreement.
  40. 61A Duty to supply copy of executed consumer credit agreement
  41. 61B Duty to supply copy of overdraft agreement
  42. 62 Duty to supply copy of unexecuted agreement : excluded agreements.
  43. 63 Duty to supply copy of executed agreement : excluded agreements.
  44. 64 Duty to give notice of cancellation rights.
  45. 65 Consequences of improper execution.
  46. 66 Acceptance of credit-tokens.
  47. 66A Withdrawal from consumer credit agreement
  48. 67 Cancellable agreements.
  49. 68 Cooling-off period.
  50. 69 Notice of cancellation.
  51. 70 Cancellation: recovery of money paid by debtor or hirer.
  52. 71 Cancellation: repayment of credit.
  53. 72 Cancellation: return of goods.
  54. 73 Cancellation: goods given in part-exchange.
  55. 74 Exclusion of certain agreements from Part V.
  56. 75 Liability of creditor for breaches by supplier.
  57. 75A Further provision for liability of creditor for breaches by supplier
  58. 76 Duty to give notice before taking certain action.
  59. 77 Duty to give information to debtor under fixed-sum credit agreement.
  60. 77A Statements to be provided in relation to fixed-sum credit agreements
  61. 77B Fixed-sum credit agreement: statement of account to be provided on request
  62. 78 Duty to give information to debtor under running-account credit agreement.
  63. 78A Duty to give information to debtor on change of rate of interest
  64. 79 Duty to give hirer information.
  65. 80 Debtor or hirer to give information about goods.
  66. 81 Appropriation of payments.
  67. 82 Variation of agreements.
  68. 82A Assignment of rights
  69. 83 Liability for misuse of credit facilities.
  70. 84 Misuse of credit-tokens.
  71. 85 Duty on issue of new credit-tokens.
  72. 86 Death of debtor or hirer.
  73. 86A FCA to prepare information sheets on arrears and default
  74. 86B Notice of sums in arrears under fixed-sum credit agreements etc.
  75. 86C Notice of sums in arrears under running-account credit agreements
  76. 86D Failure to give notice of sums in arrears
  77. 86E Notice of default sums
  78. 86F Interest on default sums
  79. 87 Need for default notice.
  80. 88 Contents and effect of default notice.
  81. 89 Compliance with default notice.
  82. 90 Retaking of protected hire-purchase etc. goods.
  83. 91 Consequences of breach of s. 90.
  84. 92 Recovery of possession of goods or land.
  85. 93 Interest not to be increased on default.
  86. 93A Summary diligence not competent in Scotland.
  87. 94 Right to complete payments ahead of time.
  88. 95 Rebate on early settlement.
  89. 95A Compensatory amount
  90. 95B Compensatory amount: green deal finance
  91. 96 Effect on linked transactions.
  92. 97 Duty to give information.
  93. 97A Duty to give information on partial repayment
  94. 98 Duty to give notice of termination (non-default cases).
  95. 98A Termination etc of open-end consumer credit agreements
  96. 99 Right to terminate hire-purchase etc. agreements.
  97. 100 Liability of debtor on termination of hire-purchase etc. agreement.
  98. 101 Right to terminate hire agreement.
  99. 102 Agency for receiving notice of rescission.
  100. 103 Termination statements.
  101. 104 Goods not to be treated as subject to landlord’s hypothec in Scotland.
  102. 105 Form and content of securities.
  103. 106 Ineffective securities.
  104. 107 Duty to give information to surety under fixed-sum credit agreement.
  105. 108 Duty to give information to surety under running-account credit agreement.
  106. 109 Duty to give information to surety under consumer hire agreement.
  107. 110 Duty to give information to debtor or hirer.
  108. 111 Duty to give surety copy of default etc. notice.
  109. 112 Realisation of securities.
  110. 113 Act not to be evaded by use of security.
  111. 114 Pawn-receipts.
  112. 115 Penalty for failure to supply copies of pledge agreement, etc.
  113. 116 Redemption period.
  114. 117 Redemption procedure.
  115. 118 Loss etc. of pawn-receipt.
  116. 119 Unreasonable refusal to deliver pawn.
  117. 120 Consequence of failure to redeem.
  118. 121 Realisation of pawn.
  119. 122 Order in Scotland to deliver pawn.
  120. 123 Restrictions on taking and negotiating instruments.
  121. 124 Consequences of breach of s. 123.
  122. 125 Holders in due course.
  123. 126 Enforcement of land mortgages.
  124. 127 Enforcement orders in cases of infringement.
  125. 128 Enforcement orders on death of debtor or hirer.
  126. 129 Time orders.
  127. 129A Debtor or hirer to give notice of intent etc. to creditor or owner
  128. 130 Supplemental provisions about time orders.
  129. 130A Interest payable on judgment debts etc.
  130. 131 Protection orders.
  131. 132 Financial relief for hirer.
  132. 133 Hire-purchase etc. agreements: special powers of court.
  133. 134 Evidence of adverse detention in hire-purchase etc. cases.
  134. 135 Power to impose conditions, or suspend operation of order.
  135. 136 Power to vary agreements and securities.
  136. 137 Extortionate credit bargains.
  137. 138 When bargains are extortionate.
  138. 139 Reopening of extortionate agreements.
  139. 140 Interpretation of sections 137 to 139.
  140. 140A Unfair relationships between creditors and debtors
  141. 140B Powers of court in relation to unfair relationships
  142. 140C Interpretation of ss. 140A and 140B
  143. 140D Advice and information
  144. 141 Jurisdiction and parties.
  145. 142 Power to declare rights of parties.
  146. 143 Jurisdiction of county court in Northern Ireland.
  147. 144 Appeal from county court in Northern Ireland.
  148. 145 Types of ancillary credit business.
  149. 148 Agreement for services of unlicensed trader.
  150. 149 Regulated agreements made on introductions by unlicensed credit-broker.
  151. 153 Definition of canvassing off trade premises (agreements for ancillary credit services).
  152. 154 Prohibition of canvassing certain ancillary credit services off trade premises.
  153. 155 Right to recover brokerage fees.
  154. 156 Entry into agreements.
  155. 157 Duty to disclose name etc. of agency.
  156. 158 Duty of agency to disclose filed information.
  157. 159 Correction of wrong information.
  158. 160 Alternative procedure for business consumers.
  159. 160A Credit intermediaries
  160. 161 Enforcement authorities.
  161. 162 Powers of entry and inspection.
  162. 163 Compensation for loss.
  163. 164 Power to make test purchases etc.
  164. 165 Obstruction of authorised officers.
  165. 166 Notification of convictions and judgments to FCA.
  166. 167 Penalties.
  167. 168 Defences.
  168. 169 Offences by bodies corporate.
  169. 170 No further sanctions for breach of Act.
  170. 171 Onus of proof in various proceedings.
  171. 172 Statements by creditor or owner to be binding.
  172. 173 Contracting-out forbidden.
  173. 174 Restrictions on disclosure of information.
  174. 174A Powers to require provision of information or documents etc.
  175. 175 Duty of persons deemed to be agents.
  176. 176 Service of documents.
  177. 176A Electronic transmission of documents
  178. 177 Saving for registered charges.
  179. 178 Local Acts.
  180. 179 Power to prescribe form etc. of secondary documents.
  181. 180 Power to prescribe form etc. of copies.
  182. 181 Power to alter monetary limits etc.
  183. 182 Regulations and orders.
  184. 183 Determinations etc. by FCA .
  185. 184 Associates.
  186. 185 Agreement with more than one debtor or hirer.
  187. 186 Agreement with more than one creditor or owner.
  188. 187 Arrangements between creditor and supplier.
  189. 187A Definition of ‘default sum’
  190. 188 Examples of use of new terminology.
  191. 189 Definitions.
  192. 189A Meaning of “consumer credit EEA firm ”
  193. 189B Green deal plans
  194. 189C Section 189B: supplementary provision
  195. 189D Section 189B: temporary provision
  196. 190 Financial provisions.
  197. 191 Special provisions as to Northern Ireland.
  198. 192 Transitional and commencement provisions, amendments and repeals.
  199. 193 Short title and extent.
  200. SCHEDULE A1 The Consumer Credit Appeals Tribunal
  201. SCHEDULE 1 Prosecution and Punishment of Offences
  202. SCHEDULE 2 Examples of Use of New Terminology
  203. SCHEDULE 2A MEANING OF “DEBTOR” IN RELATION TO GREEN DEAL AGREEMENTS
  204. SCHEDULE 3 Transitional and Commencement Provisions
  205. SCHEDULE 4. MINOR AND CONSEQUENTIAL AMENDMENTS
  206. Schedule 5 Repeals

Proposed changes to this act

No one has proposed a change to this act yet.

206 provisions

89 Compliance with default notice.

If before the date specified for that purpose in the default notice the debtor or hirer takes the action specified under section 88(1)(b) or (c) the breach shall be treated as not having occurred.

Propose a change

90 Retaking of protected hire-purchase etc. goods.

(1) At any time when— (a) the debtor is in breach of a regulated hire-purchase or a regulated conditional sale agreement relating to goods, and (b) the debtor has paid to the creditor one-third or more of the total price of the goods, and (c) the property in the goods remains in the creditor, the creditor is not entitled to recover possession of the goods from the debtor except on an order of the court. (2) Where under a hire-purchase or conditional sale agreement the creditor is required to carry out any installation and the agreement specifies, as part of the total price, the amount to be paid in respect of the installation (the “installation charge ”) the reference in subsection (1)(b) to one-third of the total price shall be construed as a reference to the aggregate of the installation charge and one-third of the remainder of the total price. (3) In a case where— (a) subsection (1)(a) is satisfied, but not subsection (1)(b), and (b) subsection (1)(b) was satisfied on a previous occasion in relation to an earlier agreement, being a regulated hire-purchase or regulated conditional sale agreement, between the same parties, and relating to any of the goods comprised in the later agreement (whether or not other goods were also included), subsection (1) shall apply to the later agreement with the omission of paragraph (b). (4) If the later agreement is a modifying agreement, subsection (3) shall apply with the substitution, for the second reference to the later agreement, of a reference to the modifying agreement. (5) Subsection (1) shall not apply, or shall cease to apply, to an agreement if the debtor has terminated, or terminates, the agreement. (6) Where subsection (1) applies to an agreement at the death of the debtor, it shall continue to apply (in relation to the possessor of the goods) until the grant of probate or administration, or (in Scotland) confirmation (on which the personal representative would fall to be treated as the debtor). (7) Goods falling within this section are in this Act referred to as “protected goods ”.

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91 Consequences of breach of s. 90.

If goods are recovered by the creditor in contravention of section 90— (a) the regulated agreement, if not previous terminated, shall terminate, and (b) the debtor shall be released from all liability under the agreement, and shall be entitled to recover from the creditor all sums paid by the debtor under the agreement.

Propose a change

92 Recovery of possession of goods or land.

(1) Except under an order of the court, the creditor or owner shall not be entitled to enter any premises to take possession of goods subject to a regulated hire-purchase agreement, regulated conditional sale agreement or regulated consumer hire agreement. (2) At any time when the debtor is in breach of a regulated conditional sale agreement relating to land, the creditor is entitled to recover possession of the land from the debtor, or any person claiming under him, on an order of the court only. (3) An entry in contravention of subsection (1) or (2) is actionable as a breach of statutory duty.

Propose a change

93 Interest not to be increased on default.

The debtor under a regulated consumer credit agreement shall not be obliged to pay interest on sums which, in breach of the agreement, are unpaid by him at a rate— (a) where the total charge for credit includes an item in respect of interest, exceeding the rate of that interest, or (b) in any other case, exceeding what would be the rate of the total charge for credit if any items included in the total charge for credit by virtue of rules made by the FCA under paragraph (2)(d) of article 60M of the Regulated Activities Order were disregarded.

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93A Summary diligence not competent in Scotland.

Summary diligence shall not be competent in Scotland to enforce payment of a debt due under a regulated agreement or under any security related thereto.

Propose a change

94 Right to complete payments ahead of time.

(1) The debtor under a regulated consumer credit agreement is entitled at any time, by notice to the creditor and the payment to the creditor of all amounts payable by the debtor to him under the agreement and any amount which the creditor claims under section 95A(2) or section 95B(2)(less any rebate allowable under section 95), to discharge the debtor’s indebtedness under the agreement. (2) A notice under subsection (1) may embody the exercise by the debtor of any option to purchase goods conferred on him by the agreement, and deal with any other matter arising on, or in relation to, the termination of the agreement. (3) The debtor under a regulated consumer credit agreement, other than an agreement secured on land, is entitled at any time to discharge part of his indebtedness by taking the steps in subsection (4). (4) The steps referred to in subsection (3) are as follows— (a) he provides notice to the creditor, (b) he pays to the creditor some of the amount payable by him to the creditor under the agreement before the time fixed by the agreement, and (c) he makes the payment— (i) before the end of the period of 28 days beginning with the day following that on which notice under paragraph (a) was received by the creditor, or (ii) on or before any later date specified in the notice. (5) Where a debtor takes the steps in subsection (4) his indebtedness shall be discharged by an amount equal to the sum of the amount paid and any rebate allowable under section 95 less any amount which the creditor claims under section 95A(2) or section 95B(2). (6) A notice— (a) under subsection (1), other than a notice relating to a regulated consumer credit agreement secured on land, or (b) under subsection (4)(a), need not be in writing.

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95 Rebate on early settlement.

(1) Regulations may provide for the allowance of a rebate of charges for credit to the debtor under a regulated consumer credit agreeement where, under section 94, on refinancing, on breach of the agreement, or for any other reason, his indebtedness is discharged or is discharged in part or becomes payable before the time fixed by the agreement, or any sum becomes payable by him before the time so fixed. (2) Regulations under subsection (1) may provide for calculation of the rebate by reference to any sums paid or payable by the debtor or his relative under or in connection with the agreement (whether to the creditor or some other person), including sums under linked transactions and other items in the total charge for credit.

Propose a change

95A Compensatory amount

(1) This section applies where— (a) a regulated consumer credit agreement, other than an agreement secured on land, provides for the rate of interest on the credit to be fixed for a period of time, and (b) under section 94 the debtor discharges all or part of his indebtedness during that period. (2) The creditor may claim an amount equal to the cost which the creditor has incurred as a result only of the debtor's indebtedness being discharged during that period if— (a) the amount of the payment under section 94 exceeds £8,000 or, where more than one such payment is made in any 12 month period, the total of those payments exceeds £8,000, (b) the agreement is not a debtor-creditor agreement enabling the debtor to overdraw on a current account, and (c) the amount of the payment under section 94 is not paid from the proceeds of a contract of payment protection insurance. (3) The amount in subsection (2)— (a) must be fair, (b) must be objectively justified, and (c) must not exceed whichever is the lower of— (i) the relevant percentage of the amount of the payment under section 94, and (ii) the total amount of interest that would have been paid by the debtor under the agreement in the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor. (4) In subsection (3)(c)(i) “ relevant percentage ” means— (a) 1%, where the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor is more than one year, or (b) 0.5%, where that period is equal to or less than one year.

Propose a change

95B Compensatory amount: green deal finance

(1) This section applies where— (a) a regulated consumer credit agreement provides for the rate of interest on the credit to be fixed for a period of time (“the fixed rate period”), (b) the agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011) which is of a duration specified for the purposes of this section in regulations, and (c) under section 94 the debtor discharges all or part of his indebtedness during the fixed rate period. (2) The creditor may claim an amount equal to the cost which the creditor has incurred as a result only of the debtor's indebtedness being discharged during the fixed rate period if— (a) the amount of the payment under section 94 is not paid from the proceeds of a contract of payment protection insurance, and (b) such other conditions as may be specified for the purposes of this section in regulations are satisfied. (3) The amount in subsection (2)— (a) must be fair, (b) must be objectively justified, (c) must be calculated by the creditor in accordance with provision made for the purposes of this section in regulations, and (d) must not exceed the total amount of interest that would have been paid by the debtor under the agreement in the period from the date on which the debtor makes the payment under section 94 to the date fixed by the agreement for the discharge of the indebtedness of the debtor. (4) If a creditor could claim under either section 95A or this section, the creditor may choose under which section to claim.

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96 Effect on linked transactions.

(1) Where for any reason the indebtedness of the debtor under a regulated consumer credit agreement is discharged before the time fixed by the agreement, he, and any relative of his, shall at the same time be discharged from any liability under a linked transaction, other than a debt which has already become payable. (2) Subsection (1) does not apply to a linked transaction which is itself an agreement providing the debtor or his relative with credit. (3) Regulations may exclude linked transactions of the prescribed description from the operation of subsection (1).

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97 Duty to give information.

(1) The creditor under a regulated consumer credit agreement, within the prescribed period after he has received a request . . . to that effect from the debtor, shall give the debtor a statement in the prescribed form indicating, according to the information to which it is practicable for him to refer, the amount of the payment required to discharge the debtor’s indebtedness under the agreement, together with the prescribed particulars showing how the amount is arrived at. (2) Subsection (1) does not apply to a request made less than one month after a previous request under that subsection relating to the same agreement was complied with. (2A) A request under subsection (1) need not be in writing unless the agreement is secured on land. (3) If the creditor fails to comply with subsection (1)— (a) he is not entitled, while the default continues, to enforce the agreement; . . . (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) This section does not apply to a regulated deferred payment credit agreement.

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97A Duty to give information on partial repayment

(1) Where a debtor under a regulated consumer credit agreement— (a) makes a payment by virtue of which part of his indebtedness is discharged under section 94, and (b) at the same time or subsequently requests the creditor to give him a statement concerning the effect of the payment on the debtor's indebtedness, the creditor must give the statement to the debtor before the end of the period of seven working days beginning with the day following that on which the creditor receives the request. (2) The statement shall be in writing and shall contain the following particulars— (a) a description of the agreement sufficient to identify it, (b) the name, postal address and, where appropriate, any other address of the creditor and the debtor, (c) where the creditor is claiming an amount under section 95A(2)or section 95B(2), that amount and the method used to determine it, (d) the amount of any rebate to which the debtor is entitled— (i) under the agreement, or (ii) by virtue of section 95 where that is higher, (e) where the amount of the rebate mentioned in paragraph (d)(ii) is given, a statement indicating that this amount has been calculated having regard to the Consumer Credit (Early Settlement) Regulations 2004, (f) where the debtor is not entitled to any rebate, a statement to this effect, (g) any change to— (i) the number, timing or amount of repayments to be made under the agreement, or (ii) the duration of the agreement, which results from the partial discharge of the indebtedness of the debtor, and (h) the amount of the debtor's indebtedness remaining under the agreement at the date the creditor gives the statement. (3) This section does not apply to a regulated deferred payment credit agreement.

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98 Duty to give notice of termination (non-default cases).

(1) The creditor or owner is not entitled to terminate a regulated agreement except by or after giving the debtor or hirer not less than seven days’ notice of the termination. (2) Subsection (1) applies only where— (a) a period for the duration of the agreement is specified in the agreement, and (b) that period has not ended when the creditor or owner does an act mentioned in subsection (1), but so applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified. (3) A notice under subsection (1) is ineffective if not in the prescribed form. (4) Subsection (1) does not prevent a creditor from treating the right to draw on any credit as restricted or deferred and taking such steps as may be necessary to make the restriction or deferment effective. (5) Regulations may provide that subsection (1) is not to apply to agreements described by the regulations. (6) Subsection (1) does not apply to the termination of a regulated agreement by reason of any breach by the debtor or hirer of the agreement. (7) This section does not apply to a regulated deferred payment credit agreement.

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98A Termination etc of open-end consumer credit agreements

(1) The debtor under a regulated open-end consumer credit agreement, other than an excluded agreement, may by notice terminate the agreement, free of charge, at any time, subject to any period of notice not exceeding one month provided for by the agreement. (2) Notice under subsection (1) need not be in writing unless the creditor so requires. (3) Where a regulated open-end consumer credit agreement, other than an excluded agreement, provides for termination of the agreement by the creditor— (a) the termination must be by notice served on the debtor, and (b) the termination may not take effect until after the end of the period of two months, or such longer period as the agreement may provide, beginning with the day after the day on which notice is served. (4) Where a regulated open-end consumer credit agreement, other than an excluded agreement, provides for termination or suspension by the creditor of the debtor's right to draw on credit— (a) to terminate or suspend the right to draw on credit the creditor must serve a notice on the debtor before the termination or suspension or, if that is not practicable, immediately afterwards, (b) the notice must give reasons for the termination or suspension, and (c) the reasons must be objectively justified. (5) Subsection (4)(a) and (b) does not apply where giving the notice— (a) is prohibited by an assimilated obligation, or (b) 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. (6) An objectively justified reason under subsection (4)(c) may, for example, relate to— (a) the unauthorised or fraudulent use of credit, or (b) a significantly increased risk of the debtor being unable to fulfil his obligation to repay the credit. (7) Subsections (1) and (3) do not affect any right to terminate an agreement for breach of contract. (8) For the purposes of this section an agreement is an excluded agreement if it is— (a) an authorised non-business overdraft agreement, (b) an authorised business overdraft agreement, (c) a debtor-creditor agreement arising where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit, or (d) an agreement secured on land.

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99 Right to terminate hire-purchase etc. agreements.

(1) At any time before the final payment by the debtor under a regulated hire-purchase or regulated conditional sale agreement falls due, the debtor shall be entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement. (2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination. (3) Subsection (1) does not apply to a conditional sale agreement relating to land after the title to the land has passed to the debtor. (4) In the case of a conditional sale agreement relating to goods, where the property in the goods, having become vested in the debtor, is transferred to a person who does not become the debtor under the agreement, the debtor shall not thereafter be entitled to terminate the agreement under subsection (1). (5) Subject to subsection (4), where a debtor under a conditional sale agreement relating to goods terminates the agreement under this section after the property in the goods has become vested in him, the property in the goods shall thereupon vest in the person (the “previous owner ”) in whom it was vested immediately before it became vested in the debtor: Provided that if the previous owner has died, or any other event has occurred whereby that property, if vested in him immediately before that event, would thereupon have vested in some other person, the property shall be treated as having devolved as if it had been vested in the previous owner immediately before his death or immediately before that event, as the case may be.

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100 Liability of debtor on termination of hire-purchase etc. agreement.

(1) Where a regulated hire-purchase or regulated conditional sale agreement is terminated under section 99 the debtor shall be liable, unless the agreement provides for a smaller payment, or does not provide for any payment, to pay to the creditor the amount (if any) by which one-half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before the termination. (2) Where under a hire-purchase or conditional sale agreement the creditor is required to carry out any installation and the agreement specifies, as part of the total price, the amount to be paid in respect of the installation (the “installation charge ”) the reference in subsection (1) to one-half of the total price shall be construed as a reference to the aggregate of the installation charge and one-half of the remainder of the total price. (3) If in any action the court is satisfied that a sum less than the amount specified in subsection (1) would be equal to the loss sustained by the creditor in consequence of the termination of the agreement by the debtor, the court may make an order for the payment of that sum in lieu of the amount specified in subsection (1). (4) If the debtor has contravened an obligation to take reasonable care of the goods or land, the amount arrived at under subsection (1) shall be increased by the sum required to recompense the creditor for that contravention, and subsection (2) shall have effect accordingly. (5) Where the debtor, on the termination of the agreement, wrongfully retains possession of goods to which the agreement relates, then, in any action brought by the creditor to recover possession of the goods from the debtor, the court, unless it is satisfied that having regard to the circumstances it would not be just to do so, shall order the goods to be delivered to the creditor without giving the debtor an option to pay the value of the goods.

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101 Right to terminate hire agreement.

(1) The hirer under a regulated consumer hire agreement is entitled to terminate the agreement by giving notice to any person entitled or authorised to receive the sums payable under the agreement. (2) Termination of an agreement under subsection (1) does not affect any liability under the agreement which has accrued before the termination. (3) A notice under subsection (1) shall not expire earlier than eighteen months after the making of the agreement, but apart from that the minimum period of notice to be given under subsection (1), unless the agreement provides for a shorter period, is as follows. (4) If the agreement provides for the making of payments by the hirer to the owner at equal intervals, the minimum period of notice is the length of one interval or three months, whichever is less. (5) If the agreement provides for the making of such payments at differing intervals, the minimum period of notice is the length of the shortest interval or three months, whichever is less. (6) In any other case, the minimum period of notice is three months. (7) This section does not apply to— (a) any agreement which provides for the making by the hirer of payments which in total (and without breach of the agreement) exceed £1,500 in any year, or (b) any agreement where— (i) goods are bailed or (in Scotland) hired to the hirer for the purposes of a business carried on by him, or the hirer holds himself out as requiring the goods for those purposes, and (ii) the goods are selected by the hirer, and acquired by the owner for the purposes of the agreement at the request of the hirer from any person other than the owner’s associate, or (c) any agreement where the hirer requires, or holds himself out as requiring, the goods for the purpose of bailing or hiring them to other persons in the course of a business carried on by him. (8) If, on an application made to the FCA by a person carrying on a consumer hire business, it appears to the FCA that it would be in the interest of hirers to do so, it may ... direct that , subject to such conditions (if any) as it may specify, this section shall not apply to consumer hire agreements made by the applicant; and this Act shall have effect accordingly . (8A) If it appears to the FCA that it would be in the interests of hirers to do so, it may ... direct that, subject to such conditions (if any) as it may specify, this section shall not apply to a consumer hire agreement if the agreement falls within a specified description; and this Act shall have effect accordingly. (9) In the case of a modifying agreement, subsection (3) shall apply with the substitution, for “the making of the agreement ” of “the making of the original agreement ”.

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102 Agency for receiving notice of rescission.

(1) Where the debtor or hirer under a regulated agreement claims to have a right to rescind the agreement, each of the following shall be deemed to be the agent of the creditor or owner for the purpose of receiving any notice rescinding the agreement which is served by the debtor or hirer— (a) a credit-broker or supplier who was the negotiator in antecedent negotiations, and (b) any person who, in the course of a business carried on by him, acted on behalf of the debtor or hirer in any negotiations for the agreement. (2) In subsection (1) “rescind ” does not include— (a) service of a notice of cancellation, or (b) termination of an agreement under section 99 or 101 or by the exercise of a right or power in that behalf expressly conferred by the agreement.

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103 Termination statements.

(1) If an individual (the “customer ”) serves on any person (the “trader ”) a notice— (a) stating that— (i) the customer was the debtor or hirer under a regulated agreement described in the notice, and the trader was the creditor or owner under the agreement, and (ii) the customer has discharged his indebtedness to the trader under the agreement, and (iii) the agreement has ceased to have any operation; and (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.

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

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.

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105 Form and content of securities.

(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.

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106 Ineffective securities.

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.

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

(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.

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

(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.

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109 Duty to give information to surety under consumer hire agreement.

(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.

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110 Duty to give information to debtor or hirer.

(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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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111 Duty to give surety copy of default etc. notice.

(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.

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112 Realisation of securities.

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113 Act not to be evaded by use of security.

(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.

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114 Pawn-receipts.

(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.

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

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116 Redemption period.

(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.

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117 Redemption procedure.

(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.

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118 Loss etc. of pawn-receipt.

(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.

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119 Unreasonable refusal to deliver pawn.

(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.

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120 Consequence of failure to redeem.

(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 ”.

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121 Realisation of pawn.

(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.

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122 Order in Scotland to deliver pawn.

(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.

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123 Restrictions on taking and negotiating instruments.

(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.

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