Consumer Credit Act 2006

24 Debt administration etc.

(1) In subsection (1) of section 145 of the 1974 Act (types of ancillary credit business) for the “or” after paragraph (d) substitute—

“(da) debt administration,”.

(2) After subsection (7) of that section insert—

“(7A) Subject to section 146(7), debt administration is the taking of steps—

(a) to perform duties under a consumer credit agreement or a consumer hire agreement on behalf of the creditor or owner, or

(b) to exercise or to enforce rights under such an agreement on behalf of the creditor or owner,

so far as the taking of such steps is not debt-collecting.”

(3) In subsection (6) of section 146 of that Act (persons who are to be treated as not carrying on types of ancillary credit businesses)—

(a) after “an agreement if” insert “any of the following conditions is satisfied”;

(b) for paragraphs (a) and (b) substitute—

“(aa) that he is the creditor or owner under the agreement, or”;

(c) at the beginning of each of paragraphs (c) to (e) insert “that”.

(4) After that subsection insert—

“(7) It is not debt administration for a person to take steps to perform duties, or to exercise or enforce rights, under an agreement on behalf of the creditor or owner if any of the conditions mentioned in subsection (6)(aa) to (e) is satisfied in relation to that person.”

(5) In subsection (3) of section 177 of that Act (saving for registered charges) and in the subsection (3) applied by virtue of subsection (5) of that section for “a business of debt-collecting” substitute “a consumer credit business, a consumer hire business or a business of debt-collecting or debt administration”.

(6) In section 189(1) of that Act (definitions) after the definition of “debt-adjusting” insert—

“‘debt administration’ has the meaning given by section 145(7A);”.