(1) Where an authorised business overdraft agreement or an authorised non-business overdraft agreement has been made, a document containing the terms of the agreement must be given to the debtor.
(2) The creditor must provide the document referred to in subsection (1) to the debtor before or at the time the agreement is made unless—
(a) the creditor has provided the debtor with the information referred to in regulation 10(3) of the Consumer Credit (Disclosure of Information) Regulations 2010, in which case it may be provided after the agreement is made,
(b) the creditor has provided the debtor with the information referred to in regulation 10(3)(c), (e), (f), (h) and (k) of those Regulations, in which case it must be provided immediately after the agreement is made, or
(c) the agreement is an agreement of a description referred to in regulation 10(4)(b) of those Regulations, in which case it must be provided immediately after the agreement is made.
(3) If the requirements of this section are not observed, the agreement is enforceable against the debtor on an order of the court only (and for these purposes a retaking of goods or land to which the agreement relates is an enforcement of the agreement).
62 Duty to supply copy of unexecuted agreement : excluded agreements.
(1) If in the case of a regulated agreement which is an excluded agreement the unexecuted agreement is presented personally to the debtor or hirer for his signature, but on the occasion when he signs it the document does not become an executed agreement, a copy of it, and of any other document referred to in it, must be there and then delivered to him.
(2) If the unexecuted agreement is sent to the debtor or hirer for his signature, a copy of it, and of any other document referred to in it, must be sent to him at the same time.
(3) A regulated agreement which is an excluded agreement is not properly executed if the requirements of this section are not observed.
(4) In this section, “excluded agreement” has the same meaning as in section 61A.
63 Duty to supply copy of executed agreement : excluded agreements.
(1) If in the case of a regulated agreement which is an excluded agreement the unexecuted agreement is presented personally to the debtor or hirer for his signature, and on the occasion when he signs it the document becomes an executed agreement, a copy of the executed agreement, and of any other document referred to in it, must be there and then delivered to him.
(2) A copy of the executed agreement, and of any other document referred to in it, must be given to the debtor or hirer within the seven days following the making of the agreement unless—
(a) subsection (1) applies, or
(b) the unexecuted agreement was sent to the debtor or hirer for his signature and, on the occasion of his signing it, the document became an executed agreement.
(3) In the case of a cancellable agreement, a copy under subsection (2) must be sent by an appropriate method .
(4) In the case of a credit-token agreement, a copy under subsection (2) need not be given within the seven days following the making of the agreement if it is given before or at the time when the credit-token is given to the debtor.
(5) A regulated agreement which is an excluded agreement is not properly executed if the requirements of this section are not observed.
(6) In this section, “excluded agreement” has the same meaning as in section 61A.
(1) In the case of a cancellable agreement, a notice in the prescribed form indicating the right of the debtor or hirer to cancel the agreement, how and when that right is exercisable, and the name and address of a person to whom notice of cancellation may be given,—
(a) must be included in every copy given to the debtor or hirer under section 62 or 63, and
(b) except where section 63(2) applied, must also be sent by an appropriate method to the debtor or hirer within the seven days following the making of the agreement.
(2) In the case of a credit-token agreement, a notice under subsection (1)(b) need not be sent by an appropriate method within the seven days following the making of the agreement if either—
(a) it is sent by an appropriate method to the debtor or hirer before the credit-token is given to him, or
(b) it is sent by an appropriate method to him together with the credit-token.
(3) Regulations may provide that except where section 63(2) applied a notice sent under subsection (1)(b) shall be accompanied by a further copy of the executed agreement, and of any other document referred to in it.
(4) Regulations may provide that subsection (1)(b) is not to apply in the case of agreements such as are described in the regulations, being agreements made by a particular person, if—
(a) on an application by that person to the FCA , the FCA has determined that, having regard to—
(i) the manner in which antecedent negotiations for agreements with the applicant of that description are conducted, and
(ii) the information provided to debtors or hirers before such agreements are made,
the requirement imposed by subsection (1)(b) can be dispensed with without prejudicing the interests of debtors or hirers; and
(b) any conditions imposed by the FCA in making the determination are complied with.
(5) A cancellable agreement is not properly executed if the requirements of this section are not observed.
(1) An improperly-executed regulated agreement is enforceable against the debtor or hirer on an order of the court only.
(2) A retaking of goods or land to which a regulated agreement relates is an enforcement of the agreement.
(1) The debtor shall not be liable under a credit-token agreement for use made of the credit-token by any person unless the debtor had previously accepted the credit-token, or the use constituted an acceptance of it by him.
(2) The debtor accepts a credit-token when—
(a) it is signed, or
(b) a receipt for it is signed, or
(c) it is first used,
either by the debtor himself or by a person who, pursuant to the agreement, is authorised by him to use it.
(1) The debtor under a regulated consumer credit agreement, other than an excluded agreement, may withdraw from the agreement, without giving any reason, in accordance with this section.
(2) To withdraw from an agreement under this section the debtor must give oral or written notice of the withdrawal to the creditor before the end of the period of 14 days beginning with the day after the relevant day.
(3) For the purposes of subsection (2) the relevant day is whichever is the latest of the following—
(a) the day on which the agreement is made;
(b) where the creditor is required to inform the debtor of the credit limit under the agreement, the day on which the creditor first does so;
(c) in the case of an agreement to which section 61A (duty to supply copy of executed consumer credit agreement) applies, the day on which the debtor receives a copy of the agreement under that section or on which the debtor is informed as specified in subsection (3) of that section;
(d) in the case of an agreement to which section 63 (duty to supply copy of executed agreement: excluded agreements) applies, the day on which the debtor receives a copy of the agreement under that section.
(4) Where oral notice under this section is given to the creditor it must be given in a manner specified in the agreement.
(5) Where written notice under this section is given by facsimile transmission or electronically—
(a) it must be sent to the number or electronic address specified for the purpose in the agreement, and
(b) where it is so sent, it is to be regarded as having been received by the creditor at the time it is sent (and section 176A does not apply).
(6) Where written notice under this section is given in any other form—
(a) it must be sent by post to, or left at, the postal address specified for the purpose in the agreement, and
(b) where it is sent by post to that address, it is to be regarded as having been received by the creditor at the time of posting (and section 176 does not apply).
(7) Subject as follows, where the debtor withdraws from a regulated consumer credit agreement under this section—
(a) the agreement shall be treated as if it had never been entered into, and
(b) where an ancillary service relating to the agreement is or is to be provided by the creditor, or by a third party on the basis of an agreement between the third party and the creditor, the ancillary service contract shall be treated as if it had never been entered into.
(8) In the case referred to in subsection (7)(b) the creditor must without delay notify any third party of the fact that the debtor has withdrawn from the agreement.
(9) Where the debtor withdraws from an agreement under this section—
(a) the debtor must repay to the creditor any credit provided and the interest accrued on it (at the rate provided for under the agreement), but
(b) the debtor is not liable to pay to the creditor any compensation, fees or charges except any non-returnable charges paid by the creditor to a public administrative body.
(10) An amount payable under subsection (9) must be paid without undue delay and no later than the end of the period of 30 days beginning with the day after the day on which the notice of withdrawal was given (and if not paid by the end of that period may be recovered by the creditor as a debt).
(11) Where a regulated consumer credit agreement is a conditional sale, hire-purchase or credit-sale agreement and—
(a) the debtor withdraws from the agreement under this section after the credit has been provided, and
(b) the sum payable under subsection (9)(a) is paid in full by the debtor,
title to the goods purchased or supplied under the agreement is to pass to the debtor on the same terms as would have applied had the debtor not withdrawn from the agreement.
(12) In subsections (2), (4), (5), (6) and (9)(a) references to the creditor include a person specified by the creditor in the agreement.
(13) In subsection (7)(b) the reference to an ancillary service means a service that relates to the provision of credit under the agreement and includes in particular an insurance or payment protection policy.
(14) For the purposes of this section, an agreement is an excluded agreement if it is—
(a) an agreement for credit exceeding £60,260 , other than a residential renovation agreement,
(b) an agreement secured on land,
(c) a restricted-use credit agreement to finance the purchase of land, or
(d) an agreement for a bridging loan in connection with the purchase of land.
(1) Subject to subsection (2) a regulated agreement may be cancelled by the debtor or hirer in accordance with this Part if the antecedent negotiations included oral representations made when in the presence of the debtor or hirer by an individual acting as, or on behalf of, the negotiator, unless—
(a) the agreement is secured on land, or is a restricted-use credit agreement to finance the purchase of land or is an agreement for a bridging loan in connection with the purchase of land, or
(b) the unexecuted agreement is signed by the debtor or hirer at premises at which any of the following is carrying on any business (whether on a permanent or temporary basis)—
(i) the creditor or owner;
(ii) any party to a linked transaction (other than the debtor or hirer or a relative of his);
(iii) the negotiator in any antecedent negotiations.
(2) This section does not apply where section 66A applies.
The debtor or hirer may serve notice of cancellation of a cancellable agreement between his signing of the unexecuted agreement and—
(a) the end of the fifth day following the day on which he received a copy under section 63(2) or a notice under section 64(1)(b), or
(b) if (by virtue of regulations made under section 64(4)) section 64(1)(b) does not apply, the end of the fourteenth day following the day on which he signed the unexecuted agreement.
(1) If within the period specified in section 68 the debtor or hirer under a cancellable agreement serves on—
(a) the creditor or owner, or
(b) the person specified in the notice under section 64(1), or
(c) a person who (whether by virtue of subsection (6) or otherwise) is the agent of the creditor or owner,
a notice (a “notice of cancellation ”) which, however expressed and whether or not conforming to the notice given under section 64(1), indicates the intention of the debtor or hirer to withdraw from the agreement, the notice shall operate—
(i) to cancel the agreement, and any linked transaction, and
(ii) to withdraw any offer by the debtor or hirer, or his relative, to enter into a linked transaction.
(2) In the case of a debtor-creditor-supplier agreement for restricted-use credit financing—
(a) the doing of work or supply of goods to meet an emergency, or
(b) the supply of goods which, before service of the notice of cancellation, had by the act of the debtor or his relative become incorporated in any land or thing not comprised in the agreement or any linked transaction,
subsection (1) shall apply with the substitution of the following for paragraph (i)—
(i) to cancel only such provisions of the agreement and any linked transaction as—
(aa) relate to the provision of credit, or
(bb) require the debtor to pay an item in the total charge for credit, or
(cc) subject the debtor to any obligation other than to pay for the doing of the said work, or the supply of the said goods
.
(3) Except so far as is otherwise provided, references in this Act to the cancellation of an agreement or transaction do not include a case within subsection (2).
(4) Except as otherwise provided by or under this Act, an agreement or transaction cancelled under subsection (1) shall be treated as if it had never been entered into.
(5) Regulations may exclude linked transactions of the prescribed description from subsection (1)(i) or (ii).
(6) Each of the following shall be deemed to be the agent of the creditor or owner for the purpose of receiving a notice of cancellation—
(a) a credit-broker or supplier who is the negotiator in antecedent negotiations, and
(b) any person who, in the course of a business carried on by him, acts on behalf of the debtor or hirer in any negotiations for the agreement.
(7) Whether or not it is actually received by him, a notice of cancellation sent to a person shall be deemed to be served on him—
(a) in the case of a notice sent by post, at the time of posting, and
(b) in the case of a notice transmitted in the form of an electronic communication in accordance with section 176A(1), at the time of the transmission.
70 Cancellation: recovery of money paid by debtor or hirer.
(1) On the cancellation of a regulated agreement, and of any linked transaction,—
(a) any sum paid by the debtor or hirer, or his relative, under or in contemplation of the agreement or transaction, including any item in the total charge for credit, shall become repayable, and
(b) any sum, including any item in the total charge for credit, which but for the cancellation is, or would or might become, payable by the debtor or hirer, or his relative, under the agreement or transaction shall cease to be, or shall not become, so payable, and
(c) in the case of a debtor-creditor-supplier agreement falling within section 12(b), any sum paid on the debtor’s behalf by the creditor to the supplier shall become repayable to the creditor.
(2) If, under the terms of a cancelled agreement or transaction, the debtor or hirer, or his relative, is in possession of any goods, he shall have a lien on them for any sum repayable to him under subsection (1) in respect of that agreement or transaction, or any other linked transaction.
(3) A sum repayable under subsection (1) is repayable by the person to whom it was originally paid, but in the case of a debtor-creditor-supplier agreement falling within section 12(b) the creditor and the supplier shall be under a joint and several liability to repay sums paid by the debtor, or his relative, under the agreement or under a linked transaction falling within section 19(1)(b) and accordingly, in such a case, the creditor shall be entitled, in accordance with rules of court, to have the supplier made a party to any proceedings brought against the creditor to recover any such sums.
(4) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (3), including costs reasonably incurred by him in defending proceedings instituted by the debtor.
(5) Subsection (1) does not apply to any sum which, if not paid by a debtor, would be payable by virtue of section 71, and applies to a sum paid or payable by a debtor for the issue of a credit-token only where the credit-token has been returned to the creditor or surrendered to a supplier.
(6) If the total charge for credit includes an item in respect of a fee or commission charged by a credit-broker, the amount repayable under subsection (1) in respect of that item shall be the excess over £5 of the fee or commission.
(7) If the total charge for credit includes any sum payable or paid by the debtor to a credit-broker otherwise than in respect of a fee or commission charged by him, that sum shall for the purposes of subsection (6) be treated as if it were such a fee or commission.
(8) So far only as is necessary to give effect to section 69(2), this section applies to an agreement or transaction within that subsection as it applies to a cancelled agreement or transaction.
(1) Notwithstanding the cancellation of a regulated consumer credit agreement, other than a debtor-creditor-supplier agreement for restricted-use credit, the agreement shall continue in force so far as it relates to repayment of credit and payment of interest.
(2) If, following the cancellation of a regulated consumer credit agreement, the debtor repays the whole or a portion of the credit—
(a) before the expiry of one month following service of the notice of cancellation, or
(b) in the case of a credit repayable by instalments, before the date on which the first instalment is due,
no interest shall be payable on the amount repaid.
(3) If the whole of a credit repayable by instalments is not repaid on or before the date specified in subsection (2)(b), the debtor shall not be liable to repay any of the credit except on receipt of a request in writing in the prescribed form, signed by or on behalf of the creditor, stating the amounts of the remaining instalments (recalculated by the creditor as nearly as may be in accordance with the agreement and without extending the repayment period), but excluding any sum other than principal and interest.
(4) Repayment of a credit, or payment of interest, under a cancelled agreement shall be treated as duly made if it is made to any person on whom, under section 69, a notice of cancellation could have been served, other than a person referred to in section 69(6)(b).
(1) This section applies where any agreement or transaction relating to goods, being—
(a) a restricted-use debtor-creditor-supplier agreement, a consumer hire agreement, or a linked transaction to which the debtor or hirer under any regulated agreement is a party, or
(b) a linked transaction to which a relative of the debtor or hirer under any regulated agreement is a party,
is cancelled after the debtor or hirer (in a case within paragraph (a)) or the relative (in a case within paragraph (b)) has acquired possession of the goods by virtue of the agreement or transaction.
(2) In this section—
(a) “the possessor ” means the person who has acquired possession of the goods as mentioned in subsection (1),
(b) “the other party ” means the person from whom the possessor acquired possession, and
(c) “the pre-cancellation period ” means the period beginning when the possessor acquired possession and ending with the cancellation.
(3) The possessor shall be treated as having been under a duty throughout the pre-cancellation period—
(a) to retain possession of the goods, and
(b) to take reasonable care of them.
(4) On the cancellation, the possessor shall be under a duty, subject to any lien, to restore the goods to the other party in accordance with this section, and meanwhile to retain possession of the goods and take reasonable care of them.
(5) The possessor shall not be under any duty to deliver the goods except at his own premises and in pursuance of a request in writing signed by or on behalf of the other party and served on the possessor either before, or at the time when, the goods are collected from those premises.
(6) If the possessor—
(a) delivers the goods (whether at his own premises or elsewhere) to any person on whom, under section 69, a notice of cancellation could have been served (other than a person referred to in section 69(6)(b)), or
(b) sends the goods at his own expense to such a person,
he shall be discharged from any duty to retain the goods or deliver them to any person.
(7) Where the possessor delivers the goods as mentioned in subsection (6)(a), his obligation to take care of the goods shall cease; and if he sends the goods as mentioned in subsection (6)(b), he shall be under a duty to take reasonable care to see that they are received by the other party and not damaged in transit, but in other respects his duty to take care of the goods shall cease.
(8) Where, at any time during the period of 21 days following the cancellation, the possessor receives such a request as is mentioned in subsection (5), and unreasonably refuses or unreasonably fails to comply with it, his duty to take reasonable care of the goods shall continue until he delivers or sends the goods as mentioned in subsection (6), but if within that period he does not receive such a request his duty to take reasonable care of the goods shall cease at the end of that period.
(9) The preceding provisions of this section do not apply to—
(a) perishable goods, or
(b) goods which by their nature are consumed by use and which, before the cancellation, were so consumed, or
(c) goods supplied to meet an emergency, or
(d) goods which, before the cancellation, had become incorporated in any land or thing not comprised in the cancelled agreement or a linked transaction.
(10) Where the address of the possessor is specified in the executed agreement, references in this section to his own premises are to that address and no other.
(11) Breach of a duty imposed by this section is actionable as a breach of statutory duty.
(1) This section applies on the cancellation of a regulated agreement where, in antecedent negotiations, the negotiator agreed to take goods in part-exchange (the “part-exchange goods ”) and those goods have been delivered to him.
(2) Unless, before the end of the period of ten days beginning with the date of cancellation, the part-exchange goods are returned to the debtor or hirer in a condition substantially as good as when they were delivered to the negotiator, the debtor or hirer shall be entitled to recover from the negotiator a sum equal to the part-exchange allowance (as defined in subsection (7)(b)).
(3) In the case of a debtor-creditor-supplier agreement within section 12(b), the negotiator and the creditor shall be under a joint and several liability to pay to the debtor a sum recoverable under subsection (2).
(4) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the negotiator for loss suffered by the creditor in satisfying his liability under subsection (3), including costs reasonably incurred by him in defending proceedings instituted by the debtor.
(5) During the period of ten days beginning with the date of cancellation, the debtor or hirer, if he is in possession of goods to which the cancelled agreement relates, shall have a lien on them for—
(a) delivery of the part-exchange goods, in a condition substantially as good as when they were delivered to the negotiator, or
(b) a sum equal to the part-exchange allowance;
and if the lien continues to the end of that period it shall thereafter subsist only as a lien for a sum equal to the part-exchange allowance.
(6) Where the debtor or hirer recovers from the negotiator or creditor, or both of them jointly, a sum equal to the part-exchange allowance, then, if the title of the debtor or hirer to the part-exchange goods has not vested in the negotiator, it shall so vest on the recovery of that sum.
(7) For the purposes of this section—
(a) the negotiator shall be treated as having agreed to take goods in part-exchange if, in pursuance of the antecedent negotiations, he either purchased or agreed to purchase those goods or accepted or agreed to accept them as part of the consideration for the cancelled agreement, and
(b) the part-exchange allowance shall be the sum agreed as such in the antecedent negotiations or, if no such agreement was arrived at, such sum as it would have been reasonable to allow in respect of the part-exchange goods if no notice of cancellation had been served.
(8) In an action brought against the creditor for a sum recoverable under subsection (2), he shall be entitled, in accordance with rules of court, to have the negotiator made a party to the proceedings.
(1) Except as provided in subsections (1A) to (2), this Part does not apply to—
(a) a non-commercial agreement,
(b) a debtor-creditor agreement enabling the debtor to overdraw on a current account,
(c) a debtor-creditor agreement to finance the making of such payments arising on, or connected with, the death of a person as may be prescribed, or
(d) a small debtor-creditor-supplier agreement for restricted-use credit.
(1A) Section 56 (antecedent negotiations) applies to a non-commercial agreement.
(1B) Where an agreement that falls within subsection (1)(b) is an authorised business overdraft agreement the following provisions apply—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) section 56 (antecedent negotiations);
(c) section 60 (regulations on form and content of agreements);
(d) section 61B (duty to supply copy of overdraft agreement).
(1C) Where an agreement that falls within subsection (1)(b) is an authorised non-business overdraft agreement the following provisions apply—
(a) section 55 (regulations on disclosure of information);
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) section 55C (copy of draft consumer credit agreement);
(d) section 56 (antecedent negotiations);
(e) section 60 (regulations on form and content of agreements);
(f) section 61B (duty to supply copy of overdraft agreement).
(1D) Where an agreement that falls within subsection (1)(b) would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months the following provisions apply—
(a) section 55 (regulations on disclosure of information);
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) section 55C (copy of draft consumer credit agreement);
(e) section 56 (antecedent negotiations);
(f) section 60 (regulations on form and content of agreements);
(g) section 61 (signing of agreement);
(h) section 61A (duty to supply copy of executed agreement);
(i) section 66A (withdrawal from consumer credit agreement).
(1E) In the case of an agreement that falls within subsection (1)(b) but does not fall within subsection (1B), (1C) or (1D), section 56 (antecedent negotiations) applies.
(1F) The following provisions apply to a debtor-creditor agreement to finance the making of such payments arising on, or connected with, the death of a person as may be prescribed—
(a) section 55 (regulations on disclosure of information);
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) section 55C (copy of draft consumer credit agreement);
(e) section 56 (antecedent negotiations);
(f) section 60 (regulations on form and content of agreements);
(g) section 61 (signing of agreement);
(h) section 61A (duty to supply copy of executed agreement);
(i) section 66A (withdrawal from consumer credit agreement).
(2) The following provisions apply to a small debtor-creditor-supplier agreement for restricted-use credit—
(a) section 55 (regulations on disclosure of information);
(b) section 56 (antecedent negotiations);
(c) section 66A (withdrawal from consumer credit agreement).
(2A) In the case of an agreement to which Part 2 or 3 of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 applies, the reference in subsection (2) to a small agreement is to be read as if in section 17(1)(a) and (b) “£42” were substituted for “£50”.
(3) Subsection (1)(c) applies only where the FCA so determines, and such a determination—
(a) may be made subject to such conditions as the FCA thinks fit, and
(b) shall be made only if the FCA is of the opinion that it is not against the interests of debtors.
(3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) If any term of an agreement falling within subsection (1)(d) is expressed in writing, regulations under section 60(1) shall apply to that term (subject to section 60(3)) as if the agreement were a regulated agreement not falling within subsection (1)(d).
75 Liability of creditor for breaches by supplier.
(1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
(2) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor.
(3) Subsection (1) does not apply to a claim—
(a) under a non-commercial agreement, . . .
(b) so far as the claim relates to any single item to which the supplier has attached a cash price not exceeding £100 or more than £30,000 , or
(c) under a debtor-creditor-supplier agreement for running-account credit—
(i) which provides for the making of payments by the debtor in relation to specified periods which, in the case of an agreement which is not secured on land, do not exceed three months, and
(ii) which requires that the number of payments to be made by the debtor in repayments of the whole amount of the credit provided in each such period shall not exceed one.
(4) This section applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.
(5) In an action brought against the creditor under subsection (1) he shall be entitled, in accordance with rules of court, to have the supplier made a party to the proceedings.
75A Further provision for liability of creditor for breaches by supplier
(1) If the debtor under a linked credit agreement has a claim against the supplier in respect of a breach of contract the debtor may pursue that claim against the creditor where any of the conditions in subsection (2) are met.
(2) The conditions in subsection (1) are—
(a) that the supplier cannot be traced,
(b) that the debtor has contacted the supplier but the supplier has not responded,
(c) that the supplier is insolvent, or
(d) that the debtor has taken reasonable steps to pursue his claim against the supplier but has not obtained satisfaction for his claim.
(3) The steps referred to in subsection (2)(d) need not include litigation.
(4) For the purposes of subsection (2)(d) a debtor is to be deemed to have obtained satisfaction where he has accepted a replacement product or service or other compensation from the supplier in settlement of his claim.
(5) In this section “linked credit agreement” means a regulated consumer credit agreement which serves exclusively to finance an agreement for the supply of specific goods or the provision of a specific service and where—
(a) the creditor uses the services of the supplier in connection with the preparation or making of the credit agreement, or
(b) the specific goods or provision of a specific service are explicitly specified in the credit agreement.
(6) This section does not apply where—
(a) the cash value of the goods or service is £30,000 or less,
(b) the linked credit agreement is for credit which exceeds £60,260 and is not a residential renovation agreement, or
(c) the linked credit agreement is entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
(7) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(c).
(8) This section does not apply to an agreement secured on land.
76 Duty to give notice before taking certain action.
(1) The creditor or owner is not entitled to enforce a term of a regulated agreement by—
(a) demanding earlier payment of any sum, or
(b) recovering possession of any goods or land, or
(c) treating any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred,
except by or after giving the debtor or hirer not less than seven days’ notice of his intention to do so.
(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 a right of enforcement arising by reason of any breach by the debtor or hirer of the regulated agreement.
(7) This section does not apply to a regulated deferred payment credit agreement.
77 Duty to give information to debtor under fixed-sum credit agreement.
(1) The creditor under a regulated agreement for fixed-sum credit, within the prescribed period after receiving a request in writing to that effect from the debtor and payment of a fee of £1, shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it, together with a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—
(a) the total sum paid under the agreement by the debtor;
(b) 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
(c) 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), he shall be taken to comply with that paragraph if his statement under subsection (1) gives the basis on which, under the regulated agreement, they would fall to be ascertained.
(2A) Subsection (2B) applies if the regulated agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011).
(2B) The duty imposed on the creditor by subsection (1) may be discharged by another person acting on the creditor's behalf.
(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 agreement; . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) This section does not apply to a non-commercial agreement or to a regulated deferred payment credit agreement.
77A Statements to be provided in relation to fixed-sum credit agreements
(1) The creditor under a regulated agreement for fixed-sum credit must give the debtor statements under this section.
(1A) The statements must relate to consecutive periods.
(1B) The first such period must begin with either—
(a) the day on which the agreement is made, or
(b) the day the first movement occurs on the debtor's account with the creditor relating to the agreement.
(1C) No such period may exceed a year.
(1D) For the purposes of subsection (1C), a period of a year which expires on a non-working day may be regarded as expiring on the next working day.
(1E) Each statement under this section must be given to the debtor before the end of the period of thirty days beginning with the day after the end of the period to which the statement relates.
(2) Regulations may make provision about the form and content of statements under this section.
(2A) Subsection (2B) applies if the regulated agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011).
(2B) Any duty imposed on the creditor by this section may be discharged by another person acting on the creditor's behalf.
(3) The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of a statement under this section.
(4) The creditor is not required to give the debtor any statement under this section once the following conditions are satisfied—
(a) that there is no sum payable under the agreement by the debtor; and
(b) that there is no sum which will or may become so payable.
(5) Subsection (6) applies if at a time before the conditions mentioned in subsection (4) are satisfied the creditor fails to give the debtor—
(a) a statement under this section within the period mentioned in subsection (1E) ; ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) Where this subsection applies in relation to a failure to give a statement under this section to the debtor—
(a) the creditor shall not be entitled to enforce the agreement during the period of non-compliance;
(b) the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and
(c) the debtor shall have no liability to pay any default sum which (apart from this paragraph)—
(i) would have become payable during the period of non-compliance; or
(ii) would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).
(7) In this section ‘the period of non-compliance’ means, in relation to a failure to give a statement under this section to the debtor, the period which—
(a) begins immediately after the end of the period mentioned in . . . subsection (5); and
(b) ends at the end of the day on which the statement is given to the debtor or on which the conditions mentioned in subsection (4) are satisfied, whichever is earlier.
(8) This section does not apply in relation to—
(a) a non-commercial agreement,
(b) a small agreement, or
(c) a regulated deferred payment credit agreement.
(9) This section does not apply where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.
77B Fixed-sum credit agreement: statement of account to be provided on request
(1) This section applies to a regulated consumer credit agreement—
(a) which is for fixed-sum credit,
(b) which is of fixed duration,
(c) where the credit is repayable in instalments by the debtor, and
(d) which is not an excluded agreement.
(2) Upon a request from the debtor, the creditor must as soon as reasonably practicable give to the debtor a statement in writing which complies with subsections (3) to (5).
(3) The statement must include a table showing the details of each instalment owing under the agreement as at the date of the request.
(4) Details to be provided under subsection (3) must include—
(a) the date on which the instalment is due,
(b) the amount of the instalment,
(c) any conditions relating to payment of the instalment, and
(d) a breakdown of the instalment showing how much of it is made up of capital repayment, interest payment and other charges.
(5) Where the rate of interest is variable or the charges under the agreement may be varied, the statement must also indicate clearly and concisely that the information in the table is valid only until the rate of interest or charges are varied.
(6) The debtor may make a request under subsection (2) at any time that the agreement is in force unless a previous request has been made less than a month before and has been complied with.
(7) The debtor shall have no liability to pay any sum in connection with the preparation or the giving of a statement under this section.
(7A) Subsection (7B) applies if the regulated agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011).
(7B) The duty imposed on the creditor by this section may be discharged by another person acting on the creditor's behalf.
(8) A breach of the duty imposed by this section is actionable as a breach of statutory duty.
(9) For the purposes of this section, an agreement is an excluded agreement if it is—
(a) an agreement secured on land,
(b) an agreement under which a person takes an article in pawn,
(c) an agreement under which the creditor provides the debtor with credit which exceeds £60,260 and which is not a residential renovation agreement, or
(d) an agreement entered into by the debtor wholly or predominantly for the purpose of a business carried on, or intended to be carried on, by him.
(10) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (9)(d).
(11) This section does not apply to a regulated deferred payment credit agreement.
78 Duty to give information to debtor under running-account credit agreement.
(1) The creditor under a regulated agreement for running-account credit, within the prescribed period after receiving a request in writing to that effect from the debtor and payment of a fee of £1, shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it, together with a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—
(a) the state of the account, and
(b) the amount, if any currently payable under the agreement by the debtor to the creditor, and
(c) 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.
(1A) Where a request under subsection (1) also amounts to a request under regulation 49 of the Payment Services Regulations 2017 (information during period of contract), subsection (1) applies as if the words “and payment of a fee of £1” were omitted.
(2) If the creditor possesses insufficient information to enable him to ascertain the amounts and dates mentioned in subsection (1)(c), he shall be taken to comply with that paragraph if his statement under subsection (1) 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) Where running-account credit is provided under a regulated agreement, the creditor shall give the debtor statements in the prescribed form, and with the prescribed contents—
(a) showing according to the information to which it is practicable for him to refer, the state of the account at regular intervals of not more than twelve months, and
(b) where the agreement provides, in relation to specified periods, for the making of payments by the debtor, or the charging against him of interest or any other sum, showing according to the information to which it is practicable for him to refer the state of the account at the end of each of those periods during which there is any movement in the account.
(4A) Regulations may require a statement under subsection (4) to contain also information in the prescribed terms about the consequences of the debtor—
(a) failing to make payments as required by the agreement; or
(b) only making payments of a prescribed description in prescribed circumstances.
(5) A statement under subsection (4) shall be given within the prescribed period after the end of the period to which the statement relates.
(6) If the creditor under an agreement fails to comply with subsection (1)—
(a) he is not entitled, while the default continues, to enforce the agreement;. . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) This section does not apply to a non-commercial agreement, and subsections (4) to (5) do not apply to a small agreement.
78A Duty to give information to debtor on change of rate of interest
(1) Where the rate of interest charged under a regulated consumer credit agreement, other than an excluded agreement, is to be varied, the creditor must inform the debtor in writing of the matters mentioned in subsection (3) before the variation can take effect.
(2) But subsection (1) does not apply where—
(a) the agreement provides that the creditor is to inform the debtor in writing periodically of the matters mentioned in subsection (3) in relation to any variation, at such times as may be provided for in the agreement,
(b) the agreement provides that the rate of interest is to vary according to a reference rate,
(c) the reference rate is publicly available,
(d) information about the reference rate is available on the premises of the creditor, and
(e) the variation of the rate of interest results from a change to the reference rate.
(3) The matters referred to in subsections (1) and (2)(a) are—
(a) the variation in the rate of interest,
(b) the amount of any payments that are to be made after the variation has effect, if different, expressed as a sum of money where practicable, and
(c) if the number or frequency of payments changes as a result of the variation, the new number or frequency.
(4) In the case of an agreement mentioned in subsection (5) this section applies as follows—
(a) the obligation in subsection (1) only applies if the rate of interest increases, and
(b) subsection (3) is to be read as if paragraphs (b) and (c) were omitted.
(5) The agreements referred to in subsection (4) are—
(a) an authorised business overdraft agreement,
(b) an authorised non-business overdraft agreement, or
(c) an agreement which would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months.
(6) For the purposes of this section an agreement is an excluded agreement if it is—
(a) 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
(b) an agreement secured on land.
(1) The owner under a regulated consumer hire agreement, within the prescribed period after receiving a request in writing to that effect from the hirer and payment of a fee of £1, shall give to the hirer a copy of the executed agreement and of any other document referred to in it, together with 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 agreement;. . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) This section does not apply to a non-commercial agreement.
80 Debtor or hirer to give information about goods.
(1) Where a regulated agreement, other than a non-commercial agreement, requires the debtor or hirer to keep goods to which the agreement relates in his possession or control, he shall, within seven working days after he has received a request in writing to that effect from the creditor or owner, tell the creditor or owner where the goods are.
(2) If the debtor or hirer fails to comply with subsection (1), and the default continues for 14 days, he commits an offence.
(1) Where, under a power contained in a regulated agreement, the creditor or owner varies the agreement, the variation shall not take effect before notice of it is given to the debtor or hirer in the prescribed manner.
(1A) Subsection (1) does not apply to a variation in the rate of interest charged under an agreement not secured on land (see section 78A).
(1B) Subsection (1) does not apply to a variation in the rate of interest charged under an agreement secured on land if—
(a) the agreement falls within subsection (1D), and
(b) the variation is a reduction in the rate.
(1C) Subsection (1) does not apply to a variation in any other charge under an agreement if—
(a) the agreement falls within subsection (1D), and
(b) the variation is a reduction in the charge.
(1D) The agreements referred to in subsections (1B) and (1C) are—
(a) an authorised business overdraft agreement,
(b) an authorised non-business overdraft agreement, or
(c) an agreement which would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months.
(1E) Subsection (1) does not apply to 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.
(2) Where an agreement (a “modifying agreement ”) varies or supplements an earlier agreement, the modifying agreement shall for the purposes of this Act be treated as—
(a) revoking the earlier agreement, and
(b) containing provisions reproducing the combined effect of the two agreements,
and obligations outstanding in relation to the earlier agreement shall accordingly be treated as outstanding instead in relation to the modifying agreement.
(2A) Subsection (2) does not apply if the earlier agreement or the modifying agreement is an exempt agreement ... .
(2B) Subsection (2) does not apply if the modifying agreement varies—
(a) the amount of the repayment to be made under the earlier agreement, or
(b) the duration of the agreement,
as a result of the discharge of part of the debtor's indebtedness under the earlier agreement by virtue of section 94(3).
(3) If the earlier agreement is a regulated agreement but (apart from this subsection) the modifying agreement is not then, unless the modifying agreement is—
(a) for running account credit; or
(b) an exempt agreement ... ,
it shall be treated as a regulated agreement. .
(4) If the earlier agreement is a regulated agreement for running-account credit, and by the modifying agreement the creditor allows the credit limit to be exceeded but intends the excess to be merely temporary, Part V (except section 56) shall not apply to the modifying agreement.
(5) If—
(a) the earlier agreement is a cancellable agreement, and
(b) the modifying agreement is made within the period applicable under section 68 to the earlier agreement,
then, whether or not the modifying agreement would, apart from this subsection, be a cancellable agreement, it shall be treated as a cancellable agreement in respect of which a notice may be served under section 68 not later than the end of the period applicable under that section to the earlier agreement.
(5A) Subsection (5) does not apply where the modifying agreement is an exempt agreement ... .
(6) Except under subsection (5), a modifying agreement shall not be treated as a cancellable agreement.
(6A) If—
(a) the earlier agreement is an agreement to which section 66A (right of withdrawal) applies, and
(b) the modifying agreement is made within the period during which the debtor may give notice of withdrawal from the earlier agreement (see section 66A(2)),
then, whether or not the modifying agreement would, apart from this subsection, be an agreement to which section 66A applies, it shall be treated as such an agreement in respect of which notice may be given under subsection (2) of that section within the period referred to in paragraph (b) above.
(6B) Except as provided for under subsection (6A) section 66A does not apply to a modifying agreement.
(7) This section does not apply to a non-commercial agreement or to a regulated deferred payment credit agreement.
(8) In this section, an “exempt agreement” means an 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) (regulated mortgage contracts and regulated home purchase plans) or article 60D (exemption relating to the purchase of land for non-residential purposes) of that Order.
(1) The debtor under a regulated consumer credit agreement shall not be liable to the creditor for any loss arising from use of the credit facility by another person not acting, or to be treated as acting, as the debtor’s agent.
(2) This section does not apply to a non-commercial agreement, or to any loss in so far as it arises from misuse of an instrument to which section 4 of the Cheques Act 1957 applies.
(1) Section 83 does not prevent the debtor under a credit-token agreement from being made liable to the extent of £35 (or the credit limit if lower) for loss to the creditor arising from use of the credit-token by other persons during a period beginning when the credit-token ceases to be in the possession of any authorised person and ending when the credit-token is once more in the possession of an authorised person.
(2) Section 83 does not prevent the debtor under a credit-token agreement from being made liable to any extent for loss to the creditor from use of the credit-token by a person who acquired possession of it with the debtor’s consent.
(3) Subsections (1) and (2) shall not apply to any use of the credit-token after the creditor has been given oral or written notice that it is lost or stolen, or is for any other reason liable to misuse.
(3A) Subsections (1) and (2) shall not apply to any use, in connection with a distance contract (other than an excepted contract), of a card which is a credit-token.
(3B) In subsection (3A), “distance contract ” and “excepted contract ” have the meanings given in the Consumer Protection (Distance Selling) Regulations 2000.
(3C) Subsections (1) and (2) shall not apply to any use, in connection with a distance contract within the meaning of the Financial Services (Distance Marketing) Regulations 2004, of a card which is a credit-token.
(4) Subsections (1) and (2) shall not apply unless there are contained in the credit-token agreement in the prescribed manner particulars of the name, address and telephone number of a person stated to be the person to whom notice is to be given under subsection (3).
(5) Notice under subsection (3) takes effect when received, but where it is given orally, and the agreement so requires, it shall be treated as not taking effect if not confirmed in writing within seven days.
(6) Any sum paid by the debtor for the issue of the credit-token, to the extent (if any) that it has not been previously offset by use made of the credit-token, shall be treated as paid towards satisfaction of any liability under subsection (1) or (2).
(7) The debtor, the creditor, and any person authorised by the debtor to use the credit-token, shall be authorised persons for the purposes of subsection (1).
(8) Where two or more credit-tokens are given under one credit-token agreement, the preceding provisions of this section apply to each credit-token separately.
(1) Whenever, in connection with a credit-token agreement, a credit-token (other than the first) is given by the creditor to the debtor, the creditor shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it.
(2) If the creditor fails to comply with this section—
(a) he is not entitled, while the default continues, to enforce the agreement; . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) This section does not apply to a small agreement.
(1) The creditor or owner under a regulated agreement is not entitled, by reason of the death of the debtor or hirer, to do an act specified in paragraphs (a) to (e) of section 87(1) if at the death the agreement is fully secured.
(2) If at the death of the debtor or hirer a regulated agreement is only partly secured or is unsecured, the creditor or owner is entitled, by reason of the death of the debtor or hirer, to do an act specified in paragraphs (a) to (e) of section 87(1) on an order of the court only.
(3) This section applies in relation to the termination of an agreement only where—
(a) a period for its duration is specified in the agreement, and
(b) that period has not ended when the creditor or owner purports to terminate the agreement,
but so applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified.
(4) This section does not prevent the 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) This section does not affect the operation of any agreement providing for payment of sums—
(a) due under the regulated agreement, or
(b) becoming due under it on the death of the debtor or hirer,
out of the proceeds of a policy of assurance on his life.
(6) For the purposes of this section an act is done by reason of the death of the debtor or hirer if it is done under a power conferred by the agreement which is—
(a) exercisable on his death, or
(b) exercisable at will and exercised at any time after his death.
86A FCA to prepare information sheets on arrears and default
(1) The FCA shall prepare and issue an arrears information sheet and a default information sheet.
(2) The arrears information sheet shall include information to help debtors and hirers who receive notices under section 86B or 86C.
(3) The default information sheet shall include information to help debtors and hirers who receive default notices.
(4) Regulations may make provision about the information to be included in an information sheet.
(5) An information sheet takes effect for the purposes of this Part at the end of the period of three months beginning with the day on which it is issued or on such later date as the FCA may specify in relation to the information sheet .
(6) If the FCA revises an information sheet after it has been issued, it shall issue the revised information sheet.
(7) A revised information sheet takes effect for the purposes of this Part at the end of the period of three months beginning with the day on which it is issued or on such later date as the FCA may specify in relation to the information sheet .
86B Notice of sums in arrears under fixed-sum credit agreements etc.
(1) This section applies where at any time the following conditions are satisfied—
(a) that the debtor or hirer under an applicable agreement is required to have made at least two payments under the agreement before that time;
(b) that the total sum paid under the agreement by him is less than the total sum which he is required to have paid before that time;
(c) that the amount of the shortfall is no less than the sum of the last two payments which he is required to have made before that time;
(d) that the creditor or owner is not already under a duty to give him notices under this section in relation to the agreement; and
(e) if a judgment has been given in relation to the agreement before that time, that there is no sum still to be paid under the judgment by the debtor or hirer.
(2) The creditor or owner—
(a) shall, within the period of 14 days beginning with the day on which the conditions mentioned in subsection (1) are satisfied, give the debtor or hirer a notice under this section; and
(b) after the giving of that notice, shall give him further notices under this section at intervals of not more than six months.
(3) The duty of the creditor or owner to give the debtor or hirer notices under this section shall cease when either of the conditions mentioned in subsection (4) is satisfied; but if either of those conditions is satisfied before the notice required by subsection (2)(a) is given, the duty shall not cease until that notice is given.
(4) The conditions referred to in subsection (3) are—
(a) that the debtor or hirer ceases to be in arrears;
(b) that a judgment is given in relation to the agreement under which a sum is required to be paid by the debtor or hirer.
(5) For the purposes of subsection (4)(a) the debtor or hirer ceases to be in arrears when—
(a) no payments , which he has ever failed to make under the agreement when required, are still owing;
(b) no default sum, which has ever become payable under the agreement in connection with his failure to pay any sum under the agreement when required, is still owing;
(c) no sum of interest, which has ever become payable under the agreement in connection with such a default sum, is still owing; and
(d) no other sum of interest, which has ever become payable under the agreement in connection with his failure to pay any sum under the agreement when required, is still owing.
(6) A notice under this section shall include a copy of the current arrears information sheet under section 86A.
(7) 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.
(8) Regulations may make provision about the form and content of notices under this section.
(9) In the case of an applicable agreement under which the debtor or hirer must make all payments he is required to make at intervals of one week or less, this section shall have effect as if in subsection (1)(a) and (c) for ‘two’ there were substituted ‘four’.
(10) If an agreement mentioned in subsection (9) was made before the beginning of the relevant period, only amounts resulting from failures by the debtor or hirer to make payments he is required to have made during that period shall be taken into account in determining any shortfall for the purposes of subsection (1)(c).
(11) In subsection (10) ‘relevant period’ means the period of 20 weeks ending with the day on which the debtor or hirer is required to have made the most recent payment under the agreement.
(11A) This section does not apply to a regulated deferred payment credit agreement.
(12) In this section ‘applicable agreement’ means an agreement which—
In this section “applicable agreement” means an agreement which falls within subsection (12A) or (12B).
(a) is a regulated agreement for fixed-sum credit or a regulated consumer hire agreement; and
(b) is neither a non-commercial agreement nor a small agreement.
(12) In this section “applicable agreement” means an agreement which falls within subsection (12A) or (12B).
(12A) An agreement falls within this subsection if—
(a) it is a regulated agreement for fixed-sum credit; and
(b) it is not—
(i) a non-commercial agreement;
(ii) a small agreement; or
(iii) a green deal plan (within the meaning of section 1 of the Energy Act 2011).
(12B) An agreement falls within this subsection if—
(a) it is a regulated consumer hire agreement; and
(b) it is neither a non-commercial agreement nor a small agreement.
(13) In this section—
(a) “ payments ” in relation to an applicable agreement which is a regulated agreement for fixed-sum credit means payments to be made at predetermined intervals provided for under the terms of the agreement; and
(b) “ payments ” in relation to an applicable agreement which is a regulated consumer hire agreement means any payments to be made by the hirer in relation to any period in consideration of the bailment or hiring to him of goods under the agreement.
86C Notice of sums in arrears under running-account credit agreements
(1) This section applies where at any time the following conditions are satisfied—
(a) that the debtor under an applicable agreement is required to have made at least two payments under the agreement before that time;
(b) that the last two payments which he is required to have made before that time have not been made;
(c) that the creditor has not already been required to give a notice under this section in relation to either of those payments; and
(d) if a judgment has been given in relation to the agreement before that time, that there is no sum still to be paid under the judgment by the debtor.
(2) The creditor shall, no later than the end of the period within which he is next required to give a statement under section 78(4) in relation to the agreement, give the debtor a notice under this section.
(3) The notice shall include a copy of the current arrears information sheet under section 86A.
(4) The notice may be incorporated in a statement or other notice which the creditor gives the debtor in relation to the agreement by virtue of another provision of this Act.
(5) The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice.
(6) Regulations may make provision about the form and content of notices under this section.
(7) In this section ‘applicable agreement’ means an agreement which—
(a) is a regulated agreement for running-account credit; and
(b) is neither a non-commercial agreement nor a small agreement.
(8) In this section “payments” means payments to be made at predetermined intervals provided for under the terms of the agreement.
(1) This section applies where the creditor or owner under an agreement is under a duty to give the debtor or hirer notices under section 86B but fails to give him such a notice—
(a) within the period mentioned in subsection (2)(a) of that section; or
(b) within the period of six months beginning with the day after the day on which such a notice was last given to him.
(2) This section also applies where the creditor under an agreement is under a duty to give the debtor a notice under section 86C but fails to do so before the end of the period mentioned in subsection (2) of that section.
(3) The creditor or owner shall not be entitled to enforce the agreement during the period of non-compliance.
(4) The debtor or hirer shall have no liability to pay—
(a) any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; or
(b) any default sum which (apart from this paragraph)—
(i) would have become payable during the period of non-compliance; or
(ii) would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).
(5) In this section ‘the period of non-compliance’ means, in relation to a failure to give a notice under section 86B or 86C to the debtor or hirer, the period which—
(a) begins immediately after the end of the period mentioned in (as the case may be) subsection (1)(a) or (b) or (2); and
(b) ends at the end of the day mentioned in subsection (6).
(6) That day is—
(a) in the case of a failure to give a notice under section 86B as mentioned in subsection (1)(a) of this section, the day on which the notice is given to the debtor or hirer;
(b) in the case of a failure to give a notice under that section as mentioned in subsection (1)(b) of this section, the earlier of the following—
(i) the day on which the notice is given to the debtor or hirer;
(ii) the day on which the condition mentioned in subsection (4)(a) of that section is satisfied;
(c) in the case of a failure to give a notice under section 86C, the day on which the notice is given to the debtor.
(1) This section applies where a default sum becomes payable under a regulated agreement by the debtor or hirer.
(2) The creditor or owner shall, within the prescribed period after the default sum becomes payable, give the debtor or hirer a notice under this section.
(3) The notice under this section may be incorporated in a statement or other notice which the creditor or owner gives the debtor or hirer in relation to the agreement by virtue of another provision of this Act.
(4) The debtor or hirer shall have no liability to pay interest in connection with the default sum to the extent that the interest is calculated by reference to a period occurring before the 29th day after the day on which the debtor or hirer is given the notice under this section.
(5) If the creditor or owner fails to give the debtor or hirer the notice under this section within the period mentioned in subsection (2), he shall not be entitled to enforce the agreement until the notice is given to the debtor or hirer.
(6) The debtor or hirer shall have no liability to pay any sum in connection with the preparation or the giving to him of the notice under this section.
(7) Regulations may—
(a) provide that this section does not apply in relation to a default sum which is less than a prescribed amount;
(b) make provision about the form and content of notices under this section.
(8) This section does not apply in relation to—
(a) a non-commercial agreement,
(b) a small agreement, or
(c) a regulated deferred payment credit agreement.
(1) This section applies where a default sum becomes payable under a regulated agreement by the debtor or hirer.
(2) The debtor or hirer shall only be liable to pay interest in connection with the default sum if the interest is simple interest.
(1) Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice ”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—
(a) to terminate the agreement, or
(b) to demand earlier payment of any sum, or
(c) to recover possession of any goods or land, or
(d) to treat any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred, or
(e) to enforce any security.
(2) Subsection (1) does not prevent the creditor from treating the right to draw upon any credit as restricted or deferred, and taking such steps as may be necessary to make the restriction or deferment effective.
(3) The doing of an act by which a floating charge becomes fixed is not enforcement of a security.
(4) Regulations may provide that subsection (1) is not to apply to agreements described by the regulations.
(5) Subsection (1)(d) does not apply in a case referred to in section 98A(4) (termination or suspension of debtor's right to draw on credit under open-end agreement).
(6) This section does not apply to a regulated deferred payment credit agreement.
(1) The default notice must be in the prescribed form and specify—
(a) the nature of the alleged breach;
(b) if the breach is capable of remedy, what action is required to remedy it and the date before which that action is to be taken;
(c) if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach, and the date before which it is to be paid.
(2) A date specified under subsection (1) must not be less than 14 days after the date of service of the default notice, and the creditor or owner shall not take action such as is mentioned in section 87(1) before the date so specified or (if no requirement is made under subsection (1)) before those 14 days have elapsed.
(3) The default notice must not treat as a breach failure to comply with a provision of the agreement which becomes operative only on breach of some other provision, but if the breach of that other provision is not duly remedied or compensation demanded under subsection (1) is not duly paid, or (where no requirement is made under subsection (1)) if the 14 days mentioned in subsection (2) have elapsed, the creditor or owner may treat the failure as a breach and section 87(1) shall not apply to it.
(4) The default notice must contain information in the prescribed terms about the consequences of failure to comply with it and any other prescribed matters relating to the agreement.
(4A) The default notice must also include a copy of the current default information sheet under section 86A.
(5) A default notice making a requirement under subsection (1) may include a provision for the taking of action such as is mentioned in section 87(1) at any time after the restriction imposed by subsection (2) will cease, together with a statement that the provision will be ineffective if the breach is duly remedied or the compensation duly paid.