(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) In Part 12 of that Act before section 175 insert— Powers to require provision of information or documents etc. 174A (1) Every power conferred on a relevant authority by or under this Act (however expressed) to require the provision or production of information or documents includes the power— (a) to require information to be provided or produced in such form as the authority may specify, including, in relation to information recorded otherwise than in a legible form, in a legible form; (b) to take copies of, or extracts from, any documents provided or produced by virtue of the exercise of the power; (c) to require the person who is required to provide or produce any information or document by virtue of the exercise of the power— (i) to state, to the best of his knowledge and belief, where the information or document is; (ii) to give an explanation of the information or document; (iii) to secure that any information provided or produced, whether in a document or otherwise, is verified in such manner as may be specified by the authority; (iv) to secure that any document provided or produced is authenticated in such manner as may be so specified; (d) to specify a time at or by which a requirement imposed by virtue of paragraph (c) must be complied with. (2) Every power conferred on a relevant authority by or under this Act (however expressed) to inspect or to seize documents at any premises includes the power to take copies of, or extracts from, any documents inspected or seized by virtue of the exercise of the power. (3) But a relevant authority has no power under this Act— (a) to require another person to provide or to produce, (b) to seize from another person, or (c) to require another person to give access to premises for the purposes of the inspection of, any information or document which the other person would be entitled to refuse to provide or produce in proceedings in the High Court on the grounds of legal professional privilege or (in Scotland) in proceedings in the Court of Session on the grounds of confidentiality of communications. (4) In subsection (3) ‘communications’ means— (a) communications between a professional legal adviser and his client; (b) communications made in connection with or in contemplation of legal proceedings and for the purposes of those proceedings. (5) In this section ‘relevant authority’ means— (a) the OFT or an enforcement authority (other than the OFT); (b) an officer of the OFT or of an enforcement authority (other than the OFT). (6) In section 189(1) of that Act (definitions) after the definition of “deposit” insert— ‘documents’ includes information recorded in any form; . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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52 Power of OFT to impose civil penalties

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53 Further provision relating to civil penalties

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54 Statement of policy in relation to civil penalties

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55 The Consumer Credit Appeals Tribunal

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56 Appeals to the Consumer Credit Appeals Tribunal

(1) In subsection (1) of section 41 of the 1974 Act (appeals) for the words from “prescribed period” onwards substitute “ specified period, appeal to the Tribunal ”. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Subsections (2) to (5) of that section shall cease to have effect.

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57 Appeals from the Consumer Credit Appeals Tribunal

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58 Consequential amendments relating to appeals

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59 Financial services ombudsman scheme to apply to consumer credit licensees

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60 Funding of ombudsman scheme

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61 Consequential amendments relating to ombudsman scheme

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In subsection (4) of section 229 of that Act (awards by ombudsman) after “specify” insert “ for the purposes of the compulsory jurisdiction ”. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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62 Monitoring of businesses by OFT

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63 Disapplication of s.101 of the 1974 Act

(1) In section 101 of the 1974 Act (right of hirer to terminate regulated consumer hire agreement) after subsection (8) insert— (8A) If it appears to the OFT that it would be in the interests of hirers to do so, it may by general notice 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. (2) In subsection (8) of that section for the words from “this section” onwards substitute “ , 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 ”.

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64 Determinations etc. by OFT

For section 183 of the 1974 Act (determinations etc. by OFT) substitute— Determinations etc. by OFT 183 (1) The OFT may vary or revoke any determination made, or direction given, by it under this Act. (2) Subsection (1) does not apply to— (a) a determination to issue, renew or vary a licence; (b) a determination to extend a period under section 28B or to refuse to extend a period under that section; (c) a determination to end a suspension under section 33; (d) a determination to make an order under section 40(2), 148(2) or 149(2); (e) a determination mentioned in column 1 of the Table in section 41.

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65 Sums received by OFT

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66 Financial provision

There shall be payable out of money provided by Parliament— (a) any expenditure incurred by a Minister of the Crown or the Office of Fair Trading by virtue of this Act; and (b) any increase attributable to this Act in the sums payable out of money so provided by virtue of any other Act.

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67 Interpretation

In this Act— “the 1974 Act” means the Consumer Credit Act 1974 (c. 39); “the 2000 Act” means the Financial Services and Markets Act 2000 (c. 8).

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68 Consequential amendments

(1) The Secretary of State may by order made by statutory instrument make such modifications of— (a) any Act or subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)), or (b) any Northern Ireland legislation or instrument made under such legislation, as he thinks fit in consequence of any provision of this Act. (2) An order under this section may include transitional or transitory provisions and savings. (3) A statutory instrument containing an order under this section may not be made by the Secretary of State unless a draft has been laid before and approved by a resolution of each House of Parliament.

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69 Transitional provision and savings

(1) Schedule 3 (which sets out transitional provision and savings) has effect. (2) The Secretary of State may by order made by statutory instrument make such transitional or transitory provisions and savings as he thinks fit in connection with the coming into force of any provision of this Act. (3) An order under this section may (amongst other things)— (a) where a provision of this Act is brought into force for limited purposes only, make provision about how references in Schedule 3 to the commencement of that provision of this Act are to apply; (b) make provision for or in connection with the application of any provision of this Act in relation to— (i) things existing or done, or (ii) persons who have done something or in relation to whom something has been done, before the coming into force of that provision of this Act. (4) An order under this section may— (a) modify any Act or any subordinate legislation (within the meaning of the Interpretation Act 1978); (b) modify any Northern Ireland legislation or any instrument made under such legislation; (c) make different provision for different cases. (5) Schedule 3 does not restrict the power under this section to make transitional or transitory provisions or savings.

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70 Repeals

The enactments and instruments set out in Schedule 4 are repealed or revoked to the extent shown in that Schedule.

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71 Short title, commencement and extent

(1) This Act may be cited as the Consumer Credit Act 2006. (2) This Act (apart from this section) shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed for different purposes. (3) This Act extends to Northern Ireland.

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SCHEDULE 1

Section 55

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SCHEDULE 2 Part 3A of Schedule 17 to the 2000 Act

Section 59

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SCHEDULE 3 Transitional Provision and Savings

Section 69 Interpretation 1 (1) Expressions used in the 1974 Act have the same meaning in this Schedule (apart from paragraphs 14 to 16 and 26) as they have in that Act. (2) For the purposes of this Schedule an agreement becomes a completed agreement once— (a) there is no sum payable under the agreement; and (b) there is no sum which will or may become so payable. Statements to be provided in relation to regulated agreements 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Regulations made under section 78(4A) of the 1974 Act may apply in relation to agreements regardless of when they were made. 4 (1) Section 7(3) of this Act shall have effect in relation to agreements whenever made. (2) A dispensing notice given under section 185(2) of the 1974 Act which is operative immediately before the commencement of section 7(3)— (a) shall, on the commencement of section 7(3), be treated as having been given under section 185(2) as substituted by section 7(3); and (b) shall continue to be operative accordingly. Default under regulated agreements 5 The OFT shall prepare, and give general notice of, the arrears information sheet and the default information sheet required under section 86A of the 1974 Act as soon as practicable after the commencement of section 8 of this Act. 6 (1) Section 86B of the 1974 Act applies in relation to agreements whenever made. (2) In the application of section 86B in relation to an agreement made before the commencement of section 9 of this Act, the conditions under subsection (1) can be satisfied only if the two payments mentioned in paragraph (c) were not required to have been made before the commencement of section 9. (3) In the case of an agreement within subsection (9) of section 86B, sub-paragraph (2) has effect as if for “two” there were substituted “four”. 7 (1) Section 86C of the 1974 Act applies in relation to agreements whenever made. (2) In the application of section 86C in relation to an agreement made before the commencement of section 10 of this Act, the conditions mentioned in subsection (1) can be satisfied only if the two payments mentioned in paragraph (b) were not required to have been made before the commencement of section 10. 8 Section 86E of the 1974 Act applies in relation to agreements whenever made but only as regards default sums which become payable after the commencement of section 12 of this Act. 9 (1) Section 86F of the 1974 Act applies in relation to agreements whenever made but only as regards default sums which become payable after the commencement of section 13 of this Act. (2) Where section 86F applies in relation to an agreement made before the commencement of section 13, the agreement shall have effect as if any right of the creditor or owner to recover compound interest in connection with the default sum in question at a particular rate were a right to recover simple interest in that connection at that rate. 10 Section 14 of this Act shall have effect in relation to any default notice served after the commencement of that section, regardless of— (a) when the breach of the agreement in question occurred; or (b) when that agreement was made. 11 The repeal by this Act of— (a) the words “(subject to subsections (3) and (4))” in subsection (1) of section 127 of the 1974 Act, (b) subsections (3) to (5) of that section, and (c) the words “or 127(3)” in subsection (3) of section 185 of that Act, has no effect in relation to improperly-executed agreements made before the commencement of section 15 of this Act. 12 A debtor or hirer under an agreement may make an application under section 129(1)(ba) of the 1974 Act regardless of when that agreement was made. 13 Section 130A of the 1974 Act applies in relation to agreements whenever made but only as regards sums that are required to be paid under judgments given after the commencement of section 17 of this Act. Unfair relationships 14 (1) The court may make an order under section 140B of the 1974 Act in connection with a credit agreement made before the commencement of section 20 of this Act but only— (a) on an application of the kind mentioned in paragraph (a) of subsection (2) of section 140B made at a time after the end of the transitional period; or (b) at the instance of the debtor or a surety in any proceedings of the kind mentioned in paragraph (b) or (c) of that subsection which were commenced at such a time. (2) But the court shall not make such an order in connection with such an agreement so made if the agreement— (a) became a completed agreement before the commencement of section 20; or (b) becomes a completed agreement during the transitional period. (3) Expressions used in sections 140A to 140C of the 1974 Act have the same meaning in this paragraph as they have in those sections. (4) In this paragraph “the transitional period” means the period of one year beginning with the day of the commencement of section 20. (5) An order under section 69 of this Act may extend, or further extend, the transitional period. 15 (1) The repeal by this Act of sections 137 to 140 of the 1974 Act shall not affect the court's power to reopen an existing agreement under those sections as set out in this paragraph. (2) The court's power to reopen an existing agreement which— (a) became a completed agreement before the commencement of section 22(3) of this Act, or (b) becomes a completed agreement during the transitional period, is not affected at all. (3) The court may also reopen an existing agreement— (a) on an application of the kind mentioned in paragraph (a) of subsection (1) of section 139 made at a time before the end of the transitional period; or (b) at the instance of the debtor or a surety in any proceedings of the kind mentioned in paragraph (b) or (c) of that subsection which were commenced at such a time. (4) Nothing in section 16A or 16B of the 1974 Act shall affect the application of sections 137 to 140 (whether by virtue of this paragraph or otherwise). (5) The repeal or revocation by this Act of the following provisions has no effect in relation to existing agreements so far as they may be reopened as set out in this paragraph— (a) section 16(7) of the 1974 Act; (b) in section 143(b) of that Act, the words “, 139(1)(a)”; (c) section 171(7) of that Act; (d) in subsection (1) of section 181 of that Act, the words “139(5) and (7),”; (e) in subsection (2) of that section, the words “or 139(5) or (7)”; (f) in section 61(6) of the Bankruptcy (Scotland) Act 1985 (c. 66), the words from the beginning to “but”; (g) in section 343(6) of the Insolvency Act 1986 (c. 45), the words from the beginning to “But”; (h) Article 316(6) of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)). (6) Expressions used in sections 137 to 140 of the 1974 Act have the same meaning in this paragraph as they have in those sections. (7) In this paragraph— “existing agreement” means a credit agreement made before the commencement of section 22(3) of this Act; “the transitional period” means the period of one year beginning with the day of the commencement of section 22(3). (8) An order under section 69 of this Act may extend, or further extend, the transitional period. 16 (1) It is immaterial for the purposes of section 140C(4)(a) to (c) of the 1974 Act when (as the case may be) a credit agreement or a linked transaction was made or a security was provided. (2) In relation to an order made under section 140B of the 1974 Act during the transitional period in connection with a credit agreement— (a) references in subsection (1) of that section to any related agreement shall not include references to a related agreement to which this sub-paragraph applies; (b) the reference to a security in paragraph (d) of that subsection shall not include a reference to a security to which this sub-paragraph applies; and the order shall not under paragraph (g) of that subsection direct accounts to be taken, or (in Scotland) an accounting to be made, between any persons in relation to a related agreement to which this sub-paragraph applies. (3) Sub-paragraph (2) applies to a related agreement or a security if— (a) it was made or provided before the commencement of section 21 of this Act; and (b) it ceased to have any operation before the order under section 140B is made. (4) In relation to an order made under section 140B after the end of the transitional period in connection with a credit agreement— (a) references in subsection (1) of that section to any related agreement shall not include references to a related agreement to which this sub-paragraph applies; (b) the reference to a security in paragraph (d) of that subsection shall not include a reference to a security to which this sub-paragraph applies; and the order shall not under paragraph (g) of that subsection direct accounts to be taken, or (in Scotland) an accounting to be made, between any persons in relation to a related agreement to which this sub-paragraph applies. (5) Sub-paragraph (4) applies to a related agreement or a security if— (a) it was made or provided before the commencement of section 21; and (b) it ceased to have any operation before the end of the transitional period. (6) Expressions used in sections 140A to 140C of the 1974 Act have the same meanings in this paragraph as they have in those sections. (7) In this paragraph “the transitional period” means the period of one year beginning with the day of the commencement of section 21. (8) An order under section 69 of this Act may extend, or further extend, the transitional period. Applications for licences and fitness to hold a licence etc. 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Further powers of OFT to regulate conduct of licensees etc. 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers and duties in relation to information 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Civil penalties 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appeals 26 (1) A person who— (a) immediately before the commencement of section 55 of this Act is a member of a panel established under regulation 24 of the appeals regulations, and (b) at the time of his appointment to that panel fell within paragraph (2)(a) of that regulation, shall be treated as having been appointed to the panel of chairmen on the day of the commencement of section 55. (2) A person who— (a) immediately before the commencement of section 55 is a member of a panel established under regulation 24 of the appeals regulations, and (b) is not to be treated as having been appointed to the panel of chairmen in accordance with sub-paragraph (1), shall be treated as having been appointed to the lay panel on the day of the commencement of section 55. (3) A person who is to be treated as having been appointed to the panel of chairmen or to the lay panel in accordance with this paragraph shall, subject to paragraph 4(2) and (3) of Schedule A1 to the 1974 Act, hold office as a member of the panel in question— (a) for the remainder of the period for which he was appointed under regulation 24 of the appeals regulations; and (b) on the terms on which he was so appointed (except as to the renewal of his appointment). (4) In this paragraph— “appeals regulations” means the Consumer Credit Licensing (Appeals) Regulations 1998 (S.I. 1998/1203); “lay panel” and “panel of chairmen” have the same meanings as in Schedule A1 to the 1974 Act. 27 (1) Neither— (a) subsections (1) and (2) of section 56 of this Act, nor (b) the repeal by this Act of subsections (2) to (5) of section 41 of the 1974 Act, has effect in relation to determinations of the OFT made before the commencement of section 56. (2) This Act, so far as it repeals section 11 of the Tribunals and Inquiries Act 1992 (c. 53), has no effect in relation to such determinations so made. (3) The repeal by this Act of paragraph 27(2) of Schedule 25 to the Enterprise Act 2002 (c. 40) has no effect in relation to such determinations so made. 28 Neither subsection (1) nor (4)(a) of section 58 of this Act has effect in relation to determinations of the OFT made before the commencement of that section. Ombudsman scheme 29 Section 1 of this Act shall have no effect for the purposes of section 226A(4)(a) of the 2000 Act in relation to a complaint which relates to an act or omission occurring before the commencement of section 1.

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SCHEDULE 4 Repeals

Section 70 Act or instrument | Extent of repeal Consumer Credit Act 1974 (c. 39) | In section 2(7), the words “or 150”. In section 6(2), the words “and must be accompanied by the specified fee”. Section 8(2). In section 15, subsection (1)(c) and the “and” immediately preceding it. Section 16(7). Section 22(9) and (10). Section 23(2). Section 25(1A). Section 29(5). Section 32(5). Section 36(6). In section 40(6), the words “, other than a non-commercial agreement,”. In section 41— subsections (2) to (5); and in the Table the entry relating to “refusal to give directions in respect of a licensee under section 29(5) or 32(5)”. In section 43, subsection (3)(a) and the “or” immediately after it. In section 127— in subsection (1) the words “(subject to subsections (3) and (4))”; and subsections (3) to (5). Sections 137 to 140. In section 143(b), the words “, 139(1)(a)”. In section 147— subsection (1); and in subsection (2) the words “(as applied by subsection (1))”. Section 150. In section 162— in subsection (1)(b)(i), the words “books or”; in subsection (1)(b), the words “and take copies of, or of any entry in, the books or documents”; in subsections (1)(d) and (e), (2) and (3) the word “books”; and subsection (7). Section 171(7). In section 181— in subsection (1) the words “43(3)(a),” and the words “139(5) and (7),”; and in subsection (2) the words “43(3)(a),” and the words “or 139(5) or (7)”. In section 185(3), the words “or 127(3)”. In section 189(1)— the definition of “costs”; in the definition of “licence” the words from “(including” onwards; and the definition of “personal credit agreement”. In Schedule 2, in Part 1, the entry relating to “personal credit agreement”. Bankruptcy (Scotland) Act 1985 (c. 66) | In section 61(6), the words from the beginning to “but”. Insolvency Act 1986 (c. 45) | In section 343(6), the words from the beginning to “But”. Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) | Article 316(6). Tribunals and Inquiries Act 1992 (c. 53) | In section 11— subsection (6); in subsection (7)(a), the words from “or on an appeal” to “Scotland” in the third place where it occurs; and in subsection (8), the words from “and in relation to” to “Northern Ireland” in the third place where it occurs. Enterprise Act 2002 (c. 40) | In Schedule 25, paragraphs 6(18)(b) and 27(2).

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