Consumer Credit Act 1974

Changes over time for: Section 16

Version Superseded: 01/04/1997

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Consumer Credit Act 1974, Section 16 is up to date with all changes known to be in force on or before 22 May 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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16 Exempt agreements.U.K.

(1)This Act does not regulate a consumer credit agreement where the creditor is a local authority . . . F1, or a body specified, or of a description specified, in an order made by the Secretary of State, being—

(a)an insurance company,

(b)a friendly society,

(c)an organisation of employers or organisation of workers,

(d)a charity,

(e)a land improvement company, . . . F2

(f)a body corporate named or specifically referred to in any public general Act.

[F3(ff)a body corporate named or specifically referred to in an order made under—

section 156(4), 444(1) or 447(2)(a) of the Housing Act 1985,

section [F4223 or 229 of the Housing (Scotland) Act 1987], or

Article 154(1)(a) or 156AA of the Housing (Northern Ireland) Order 1981 or Article 10(6A) of the Housing (Northern Ireland) Order 1983; or][F5, or

(g)a building society.][F6, or

(h)an authorised institution or wholly-owned subsidiary (within the meaning of the Companies Act 1985) of such an institution.]

(2)Subsection (1) applies only where the agreement is—

(a)a debtor-creditor-supplier agreement financing—

(i)the purchase of land, or

(ii)the provision of dwellings on any land, and secured by a land mortgage on that land; or

(b)a debtor-creditor agreement secured by any land mortgage; or

(c)a debtor-creditor-supplier agreement financing a transaction which is a linked transaction in relation to—

(i)an agreement falling within paragraph (a), or

(ii)an agreement falling within paragraph (b) financing—

(aa)the purchase of any land, or

(bb)the provision of dwellings on any land,

and secured by a land mortgage on the land referred to in paragraph (a) or, as the case may be, the land referred to in sub-paragraph (ii).

(3)The Secretary of State shall not make, vary or revoke an order—

(a)under subsection (1)(a) without consulting the Minister of the Crown responsible for insurance companies,

(b)under subsection (1)(b) [F7 or (c)] . . . without consulting the Chief Registrar of Friendly Societies,

(c)under subsection (1)(d) without consulting the Charity Commissioners, . . . F2

(d)under subsection (1)(e) [F8, (f) or (ff)] without consulting any Minister of the Crown with responsibilities concerning the body in question.

[F9or

(e)under subsection (1)(g) without consulting the Building Societies Commission and the Treasury.]

[F10or

(f)under subsection (1)(h) without consulting the Treasury and the Bank of England.]

(4)An order under subsection (1) relating to a body may be limited so as to apply only to agreements by that body of a description specified in the order.

(5)The Secretary of State may by order provide that this Act shall not regulate other consumer credit agreements where—

(a)the number of payments to be made by the debtor does not exceed the number specified for that purpose in the order, or

(b)the rate of the total charge for credit does not exceed the rate so specified, or

(c)an agreement has a connection with a country outside the United Kingdom.

(6)The Secretary of State may by order provide that this Act shall not regulate consumer hire agreements of a description specified in the order where—

(a)the owner is a body corporate authorised by or under any enactment to supply electricity, gas or water, and

(b)the subject of the agreement is a meter or metering equipment,

[F11or where the owner is a public telecommunications operator specified in the order].

[F12(6A)This Act does not regulate a consumer credit agreement where the creditor is a housing authority and the agreement is secured by a land mortgage of a dwelling.

(6B)In subsection (6A) “housing authority ” means—

(a)as regards England and Wales, [F13the Housing Corporation, Housing for Wales and] an authority or body within section 80(1) of the Housing Act 1985 (the landlord condition for secure tenancies), other than a housing association or a housing trust which is a charity;

(b)as regards Scotland, a development corporation established under an order made, or having effect as if made under the New Towns (Scotland) Act 1968, the Scottish Special Housing Association or the Housing Corporation;

(c)as regards Northern Ireland, the Northern Ireland Housing Executive.]

(7)Nothing in this section affects the application of sections 137 to 140 (extortionate credit bargains).

(8)In the application of this section to Scotland subsection (3)(c) shall not have effect.

(9)In the application of this section to Northern Ireland subsection (3) shall have effect as if any reference to a Minister of the Crown were a reference to a Northern Ireland department, any reference to the Chief Registrar of Friendly Societies were a reference to the Registrar of Friendly Societies for Northern Ireland, and any reference to the Charity Commissioners were a reference to the Department of Finance for Northern Ireland.

Textual Amendments

F1Words repealed by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 18 Pt. I para. 10(2), Sch. 19 Pt. I

F2Word repealed by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 19 Pt. I

F3S. 16(1)(ff) inserted by Housing and Planning Act 1986 (c. 63, SIF 60), s. 22(2)

F4Words in s. 16(1)(ff) substituted (S.) by virtue of Housing (Scotland) Act 1987 (c. 26, SIF 61), s. 339, Sch. 23 para. 21

F5Words inserted by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 18 para. 10(2)

F6S. 16(1)(h) and “", or" ” inserted by Banking Act 1987 (c. 22, SIF 10), s. 88(2)

F7Words in s. 16(3)(b) repealed (E.W.S.) by Employment Protection Act 1975 (c. 71), Sch. 18

F8 “", (f) or (ff)" ” substituted by Housing and Planning Act 1986 (c. 63, SIF 60), s. 22(2)

F9 “"or" ” and s. 16(3)(e) inserted by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 18 Pt. I para. 10(3)

F10 “"or" ” and s. 16(3)(f) inserted by Banking Act 1987 (c. 22, SIF 10), s. 88(3)

F11Words substituted by Telecommunications Act 1984 (c. 12, SIF 96), s. 109, Sch. 4 para. 60(1), Sch. 5 para. 45