Consumer Credit Act 1974

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—

[F2 (a) an insurer;]

(b) a friendly society,

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

(d) a charity,

(e) a land improvement company, . . . F3

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

[F4 (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 [F5 section 156(4) of that Act as it has effect by virtue of section 17 of the Housing Act 1996 (the right to acquire),],

section [F6 223 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][F7 , or

(g) a building society.][F8 , or

[F9 (h) a deposit-taker.]]

(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).

[F10 (3) Before he makes, varies or revokes an order under subsection (1), the Secretary of State must undertake the necessary consultation.

(3A) The necessary consultation means consultation with the bodies mentioned in the following table in relation to the provision under which the order is to be made, varied or revoked:

TABLE

Provision of subsection (1)	Consultee
Paragraph (a) or (b)	The Financial Services Authority
Paragraph (d)	The Charity Commissioners
Paragraph (e), (f) or (ff)	Any Minister of the Crown with responsibilities in relation to the body in question
Paragraph (g) or (h)	The Treasury and the Financial Services Authority]

(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,

[F11 or where the owner is a [F12 provider of a public electronic communications service who is specified in the order]].

[F13 (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, [F14 the Housing Corporation F15 . . . 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.]

[F16 (6C) This Act does not regulate a consumer credit agreement if—

(a) it is secured by a land mortgage; and

(b) entering into that agreement as lender is a regulated activity for the purposes of the Financial Services and Markets Act 2000.

(6D) But section 126, and any other provision so far as it relates to section 126, applies to an agreement which would (but for subsection (6C)) be a regulated agreement.

(6E) Subsection (6C) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000 (regulated activities: power to specify classes of activity and categories of investment);

(b) any order for the time being in force under that section; and

(c) Schedule 2 to that Act.]

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

[F17 (8) In the application of this section to Scotland, subsection (3A) shall have effect as if the reference to the Charity Commissioners were a reference to the Lord Advocate.]

(9) In the application of this section to Northern Ireland [F18 subsection (3A)] shall have effect as if any reference to a Minister of the Crown were a reference to a Northern Ireland department, F19 . . . and any reference to the Charity Commissioners were a reference to the Department of Finance for Northern Ireland.

[F20 (10) In this section—

(a) “deposit-taker ” means—

(i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits,

(ii) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits,

(iii) any wholly owned subsidiary (within the meaning of the Companies Act 1985) of a person mentioned in sub-paragraph (i), or

(iv) any undertaking which, in relation to a person mentioned in sub-paragraph (ii), is a subsidiary undertaking within the meaning of any rule of law in force in the EEA State in question for purposes connected with the implementation of the European Council Seventh Company Law Directive of 13 June 1983 on consolidated accounts (No. 83/349/EEC), and which has no members other than that person;

(b) “insurer ” means—

(i) a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to effect or carry out contracts of insurance, or

(ii) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act, which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance,

but does not include a friendly society or an organisation of workers or of employers.

(11) Subsection (10) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.]

Textual Amendments

F1 Words repealed by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 18 Pt. I para. 10(2), Sch. 19 Pt. I

F2 S. 16(1)(a) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(2)(a)

F3 Word repealed by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 19 Pt. I

F4 S. 16(1)(ff) inserted by Housing and Planning Act 1986 (c. 63, SIF 60), s. 22(2)

F5 Words in s. 16(1)(ff) inserted (E.W.S.) (1.4.1997) by S.I. 1997/627, art. 2, Sch. para. 2

F6 Words in s. 16(1)(ff) substituted (S.) by virtue of Housing (Scotland) Act 1987 (c. 26, SIF 61), s. 339, Sch. 23 para. 21

F7 Words inserted by Building Societies Act 1986 (c. 53, SIF 16), s. 120, Sch. 18 para. 10(2)

F8 S. 16(1)(h) and “, or ” inserted by Banking Act 1987 (c. 22, SIF 10), s. 88(2)

F9 S. 16(1)(h) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(2)(b)

F10 S. 16(3)(3A) substituted for s. 16(3) (1.12.2001) by S.I. 2001/3649, arts. 1, 165(3)

F11 Words substituted by Telecommunications Act 1984 (c. 12, SIF 96), s. 109, Sch. 4 para. 60(1), Sch. 5 para. 45

F12 Words in s. 16(6) substituted (25.7.2003 for specified purposes, 29.12.2003 for further specified purposes) by Communications Act 2003 (c. 21), ss. 406, 408, 411, Sch. 17 para. 47 (with Sch. 18); S.I. 2003/1900, arts. 1(2), 2(1), 3(1), Sch. 1 (with arts. 3(2) (as amended (8.12.2003) by S.I. 2003/3142, art. 1(3))); S.I. 2003/3142, art. 3(2) (with art. 11)

F13 S. 16(6A)(6B) inserted by Housing and Planning Act 1986 (c. 63, SIF 60), s. 22(3)

F14 Words inserted (S.) by Housing Act 1988 (c. 50, SIF 61), s. 140, Sch. 17, para. 20

F15 Words in s. 16(6B)(a) repealed (1.11.1998) by 1998 c. 38, s. 152, Sch. 18 Pt. VI (with ss.137(1), 139(2),143(2)); S.I. 1998/2244, art. 5

F16 S. 16(6C)-(6E) inserted (1.9.2002) by S.I. 2001/544, arts. 2, 90(2); S.I. 2001/3538, art. 2

F17 S. 16(8) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(4)

F18 Words in s. 16(9) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(5)(a)

F19 Words in s. 16(9) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 165(5)(b)

F20 S. 16(10)(11) inserted (1.12.2001) by S.I. 2001/3649, arts. 1, 165(6)

Modifications etc. (not altering text)

C1 S. 16(1)(f) extended (E.W.S.) (25.7.1991) by Agriculture and Forestry (Financial Provisions) Act 1991 (c. 33, SIF 2:2), s. 1(7)