Consumer Credit Act 1974
Part IOFFICE OF FAIR TRADING
1 General functions of OFT.
2 Powers of Secretary of State.
3 Supervision by Council on Tribunals.
4 Dissemination of information and advice.
5 Annual and other reports.
6 Form etc. of applications.
6ACharge on applicants for licences etc.
7 Penalty for false information.
Part II Credit Agreements, Hire Agreements and Linked Transactions
8 Consumer credit agreements.
9 Meaning of credit.
10 Running-account credit and fixed-sum credit.
11 Restricted-use credit and unrestricted-use credit.
12 Debtor-creditor supplier agreements.
13 Debtor-creditor agreements.
14 Credit-token agreements.
15 Consumer hire agreements.
16 Exempt agreements.
16AExemption relating to high net worth debtors and hirers
16BExemption relating to businesses
16CExemption relating to investment properties
17 Small agreements.
18 Multiple agreements.
19 Linked transactions.
20 Total charge for credit.
Part III Licensing of Credit and Hire Businesses
Licensing principles
21 Businesses needing a licence.
22 Standard and group licences.
23 Authorisation of specific activities.
24 Control of name of business.
24AApplications for standard licences
25 Licensee to be a fit person.
25AGuidance on fitness test
26 Conduct of business
Issue of licences
27 Determination of applications.
27AConsumer credit EEA firms
28 Exclusion from group licence.
Charges for indefinite licences
28ACharges to be paid by licensees etc. before end of payment periods
28BExtension of period to pay charge under s. 28A
28CFailure to pay charge under s. 28A
Renewal, variation, suspension and revocation of licences
29 Renewal.
30 Variation by request.
31 Compulsory variation.
32 Suspension and revocation.
33 Application to end suspension.
Further powers of OFT to regulate conduct of licensees etc.
33APower of OFT to impose requirements on licensees
33BPower of OFT to impose requirements on supervisory bodies
33CSupplementary provision relating to requirements
33DProcedure in relation to requirements
33EGuidance on requirements
Miscellaneous
34 Representations to OFT.
34AWinding-up of standard licensee's business
35 The register.
36 Duty to notify changes.
36AFurther duties to notify changes etc.
36BPower of OFT to require information generally
36CPower of OFT to require access to premises
36DEntry to premises under warrant
36EFailure to comply with information requirement
36FOfficers of enforcement authorities other than OFT
37 Death, bankruptcy etc. of licensee.
38 Application of s. 37 to Scotland and Northern Ireland.
39 Offences against Part III.
39APower of OFT to impose civil penalties
39BFurther provision relating to civil penalties
39CStatement of policy in relation to civil penalties
40 Enforcement of agreements made by unlicensed trader.
41 Appeals to Secretary of State under Part III.
42 Further appeal on point of law.
Appeals
40AThe Consumer Credit Appeals Tribunal
41ZATribunal Procedure Rules: suspension of OFT determinations
41ZBDisposal of appeals
41AAppeals from the Consumer Credit Appeals Tribunal
Part IV Seeking Business
Advertising
43 Advertisements to which Part IV applies.
44 Form and content of advertisements.
45 Prohibition of advertisement where goods etc. not sold for cash.
46 False or misleading advertisements.
47 Advertising infringements.
Canvassing etc.
48 Definition of canvassing off trade premises (regulated agreements).
49 Prohibition of canvassing debtor-creditor agreements off trade premises.
50 Circulars to minors.
51 Prohibition of unsolicited credit-tokens.
51ARestrictions on provision of credit card cheques
51BSection 51A: exemption for business
Miscellaneous
52 Quotations.
53 Duty to display information.
54 Conduct of business regulations.
Part V Entry into Credit or Hire Agreements
Preliminary matters
55 Disclosure of information.
55APre-contractual explanations etc
55BAssessment of creditworthiness
55CCopy of draft consumer credit agreement
56 Antecedent negotiations.
57 Withdrawal from prospective agreement.
58 Opportunity for withdrawal from prospective land mortgage.
59 Agreement to enter future agreement void.
Making the agreement
60 Form and content of agreements.
61 Signing of agreement.
61ADuty to supply copy of executed consumer credit agreement
61BDuty to supply copy of overdraft agreement
62 Duty to supply copy of unexecuted agreement.
63 Duty to supply copy of executed agreement.
64 Duty to give notice of cancellation rights.
65 Consequences of improper execution.
66 Acceptance of credit-tokens.
Withdrawal from certain agreements
66AWithdrawal from consumer credit agreement
Cancellation of certain agreements within cooling-off period
67 Cancellable agreements.
68 Cooling-off period.
69 Notice of cancellation.
70 Cancellation: recovery of money paid by debtor or hirer.
71 Cancellation: repayment of credit.
72 Cancellation: return of goods.
73 Cancellation: goods given in part-exchange.
Exclusion of certain agreements from Part V
74 Exclusion of certain agreements from Part V.
PART VACURRENT ACCOUNT OVERDRAFTS
74AInformation to be provided on a current account agreement
74BInformation to be provided on significant overdrawing without prior arrangement
Part VI Matters Arising During Currency of Credit or Hire Agreements
75 Liability of creditor for breaches by supplier.
75AFurther provision for liability of creditor for breaches by supplier
76 Duty to give notice before taking certain action.
77 Duty to give information to debtor under fixed-sum credit agreement.
77AStatements to be provided in relation to fixed-sum credit agreements
77BFixed-sum credit agreement: statement of account to be provided on request
78 Duty to give information to debtor under running-account credit agreement.
78ADuty to give information to debtor on change of rate of interest
79 Duty to give hirer information.
80 Debtor or hirer to give information about goods.
81 Appropriation of payments.
82 Variation of agreements.
82AAssignment of rights
83 Liability for misuse of credit facilities.
84 Misuse of credit-tokens.
85 Duty on issue of new credit-tokens.
86 Death of debtor or hirer.
Part VII Default and Termination
Default notices
87 Need for default notice.
88 Contents and effect of default notice.
89 Compliance with default notice.
Further restriction of remedies for default
90 Retaking of protected hire-purchase etc. goods.
91 Consequences of breach of s. 90.
92 Recovery of possession of goods or land.
93 Interest not to be increased on default.
93A Summary diligence not competent in Scotland.
Early payment by debtor
94 Right to complete payments ahead of time.
95 Rebate on early settlement.
95ACompensatory amount
95BCompensatory amount: green deal finance
96 Effect on linked transactions.
97 Duty to give information.
97ADuty to give information on partial repayment
Termination of agreements
98 Duty to give notice of termination (non-default cases).
98ATermination etc of open-end consumer credit agreements
99 Right to terminate hire-purchase etc. agreements.
100 Liability of debtor on termination of hire-purchase etc. agreement.
101 Right to terminate hire agreement.
102 Agency for receiving notice of rescission.
103 Termination statements.
104 Goods not to be treated as subject to landlord’s hypothec in Scotland.
Part VIII Security
General
105 Form and content of securities.
106 Ineffective securities.
107 Duty to give information to surety under fixed-sum credit agreement.
108 Duty to give information to surety under running-account credit agreement.
109 Duty to give information to surety under consumer hire agreement.
110 Duty to give information to debtor or hirer.
111 Duty to give surety copy of default etc. notice.
112 Realisation of securities.
113 Act not to be evaded by use of security.
Pledges
114 Pawn-receipts.
115 Penalty for failure to supply copies of pledge agreement, etc.
116 Redemption period.
117 Redemption procedure.
118 Loss etc. of pawn-receipt.
119 Unreasonable refusal to deliver pawn.
120 Consequence of failure to redeem.
121 Realisation of pawn.
122 Order in Scotland to deliver pawn.
Negotiable instruments
123 Restrictions on taking and negotiating instruments.
124 Consequences of breach of s. 123.
125 Holders in due course.
Land mortgages
126 Enforcement of land mortgages.
Part IX Judicial Control
Enforcement of certain regulated agreements and securities
127 Enforcement orders in cases of infringement.
128 Enforcement orders on death of debtor or hirer.
Extension of time
129 Time orders.
129ADebtor or hirer to give notice of intent etc. to creditor or owner
130 Supplemental provisions about time orders.
Interest
130AInterest payable on judgment debts etc.
Protection of property pending proceedings
131 Protection orders.
Hire and hire-purchase etc. agreements
132 Financial relief for hirer.
133 Hire-purchase etc. agreements: special powers of court.
134 Evidence of adverse detention in hire-purchase etc. cases.
Supplemental provisions as to orders
135 Power to impose conditions, or suspend operation of order.
136 Power to vary agreements and securities.
Extortionate credit bargains
137 Extortionate credit bargains.
138 When bargains are extortionate.
139 Reopening of extortionate agreements.
140 Interpretation of sections 137 to 139.
Unfair relationships
140AUnfair relationships between creditors and debtors
140BPowers of court in relation to unfair relationships
140CInterpretation of ss. 140A and 140B
140DAdvice and information
Miscellaneous
141 Jurisdiction and parties.
142 Power to declare rights of parties.
Northern Ireland
143 Jurisdiction of county court in Northern Ireland.
144 Appeal from county court in Northern Ireland.
Part X Ancillary Credit Businesses
Definitions
145 Types of ancillary credit business.
146 Exceptions from section 145.
Licensing
147 Application of Part III.
148 Agreement for services of unlicensed trader.
149 Regulated agreements made on introductions by unlicensed credit-broker.
150 Appeals to Secretary of State against licensing decisions.
Seeking business
151 Advertisements.
152 Application of sections 52 to 54 to credit brokerage etc.
153 Definition of canvassing off trade premises (agreements for ancillary credit services).
154 Prohibition of canvassing certain ancillary credit services off trade premises.
155 Right to recover brokerage fees.
Entry into agreements
156 Entry into agreements.
Credit reference agencies
157 Duty to disclose name etc. of agency.
158 Duty of agency to disclose filed information.
159 Correction of wrong information.
160 Alternative procedure for business consumers.
160ACredit intermediaries
Part XI Enforcement of Act
161 Enforcement authorities.
162 Powers of entry and inspection.
163 Compensation for loss.
164 Power to make test purchases etc.
165 Obstruction of authorised officers.
166 Notification of convictions and judgments to OFT.
167 Penalties.
168 Defences.
169 Offences by bodies corporate.
170 No further sanctions for breach of Act.
171 Onus of proof in various proceedings.
172 Statements by creditor or owner to be binding.
173 Contracting-out forbidden.
Part XII Supplemental
174 Restrictions on disclosure of information.
174APowers to require provision of information or documents etc.
175 Duty of persons deemed to be agents.
176 Service of documents.
176AElectronic transmission of documents
177 Saving for registered charges.
178 Local Acts.
Regulations, orders, etc.
179 Power to prescribe form etc. of secondary documents.
180 Power to prescribe form etc. of copies.
181 Power to alter monetary limits etc.
182 Regulations and orders.
183 Determinations etc. by OFT.
Interpretation
184 Associates.
185 Agreement with more than one debtor or hirer.
186 Agreement with more than one creditor or owner.
187 Arrangements between creditor and supplier.
187ADefinition of ‘default sum’
188 Examples of use of new terminology.
189 Definitions.
189A Meaning of “consumer credit EEA firm ”
190 Financial provisions.
191 Special provisions as to Northern Ireland.
192 Transitional and commencement provisions, amendments and repeals.
193 Short title and extent.
SCHEDULES
SCHEDULE A1The Consumer Credit Appeals Tribunal
Part 1Interpretation
1In this Schedule— “the Deputy President” means the Deputy President...
Part 2The Tribunal
The President and the Deputy President
2(1) The Lord Chancellor shall appoint one of the members...
Panels
3(1) The Lord Chancellor shall appoint a panel of persons...
Terms of office etc.
4(1) Each member of the panel of chairmen or the...
Remuneration and allowances
5The Lord Chancellor may pay to a person in respect...
Staff and costs
6(1) The Lord Chancellor may appoint such staff for the...
Part 3Constitution of the Tribunal
7(1) On an appeal to the Tribunal, the persons to...
Part 4Tribunal powers and procedure
Sittings
8The Tribunal shall sit at such times and in such...
Evidence
9(1) Subject to sub-paragraph (2), the Tribunal may, on an...
Rules on procedure
10Rules may include, amongst other things, provision—
Council on Tribunals
11A member of the Council on Tribunals or of its...
Disposal of appeals
12(1) The Tribunal shall decide an appeal by reference to...
Decisions of the Tribunal
13(1) A decision of the Tribunal may be taken by...
Costs
14(1) Where the Tribunal disposes of an appeal and—
15Where— (a) the Tribunal disposes of an appeal or an...
16An order of the Tribunal under paragraph 14 or 15...
SCHEDULE 1 Prosecution and Punishment of Offences
SCHEDULE 2 Examples of Use of New Terminology
Part I Lists of Terms
Part II
SCHEDULE 3 Transitional and Commencement Provisions
Part II of Act Credit Agreements, Hire Agreements and Linked Transactions
Regulated agreements
1(1) An agreement made before 1st April 1977is not a...
Linked transactions
2A transaction may be a linked transaction in relation to...
3Section 19(3) applies only to transactions entered into on or...
Total charge for credit
4Section 20 applies to consumer credit agreements whenever made.
Part III of Act Licensing of Credit and Hire Businesses
Businesses needing a licence
5(1) Section 21 does not apply to the carrying on...
The register
6Sections 35 and 36 come into operation on 2nd February...
Enforcement of agreements made by unlicensed trader
7Section 40 does not apply to a regulated agreement made...
Part IV of Act Seeking Business
Advertisements
8Part IV does not apply to any advertisement published before...
Canvassing
9Section 49 comes into operation on 1st October 1977.
Circulars to minors
10Section 50 comes into operation on 1st July 1977.
Unsolicited credit-tokens
11(1) Section 51(1) does not apply to the giving of...
Part V of Act Entry into Credit or Hire Agreements
Antecedent negotiations
12(1) Section 56 applies to negotiations in relation to an...
General
13Sections 57 to 59, 61 to 65 and 67 to...
14Section 66 comes into operation on 19th May 1985.
Part VI of Act Matters Arising During Currency of Credit or Hire Agreements
Liability of creditor for breaches by supplier
15Section 75 comes into operation on 1st July 1977 but...
Duty to give notice
16(1) Section 76 comes into operation on 19th May 1985....
Duty to give information
17(1) Sections 77 to 80 come into operation on 19th...
Appropriation of payments
18Section 81 comes into operation on 19th May 1985.
Variation of agreements
19Section 82 comes into operation on 1st April 1977.
Misuse of credit facilities
20(1) Sections 83 and 84 come into operation on 19th...
Duty on issue of new credit-tokens
21(1) Section 85 comes into operation on 19th May 1985....
Death of debtor or hirer
22(1) Section 86 comes into operation on 19th May 1985....
Part VII of Act Default and Termination
Default notices
23Sections 87 to 89 come into operation on 19th May...
Retaking of goods and land
24Sections 90 and 91 come into operation on 19th May...
25Section 92 comes into operation on 19th May 1985.
Interest on default
26Section 93 comes into operation on 19th May 1985.
Early payment by debtor
27Sections 94 to 97 come into operation on 19th May...
Termination of agreements
28Section 98 comes into operation on 19th May 1985.
29Section 99 comes into operation on 19th May 1985.
30Section 100 comes into operation on 19th May 1985.
31Section 101 comes into operation on 19th May 1985.
32Section 102 comes into operation on 19th May 1985.
33Section 103 comes into operation on 19th May 1985.
34Section 104 comes into operation on 19th May 1985.
Old agreements
35Part VII (except sections 90, 91, 93 and 99 to...
Part VIII of Act Security
General
36Section 105 comes into operation on 19th May 1985.
37(1) Sections 107 to 110 come into operation on 19th...
38(1) Section 111 comes into operation on 19th May 1985....
Pledges
39Sections 114 to 122 come into operation on 19th May...
Negotiable instruments
40Sections 123 to 125 come into operation on 19th May...
Land mortgages
41Section 126 comes into operation on 19th May 1985.
Part IX of Act Judicial Control
42Sections 137 to 140 (extortionate credit bargains) come into operation...
43Subject to paragraph 42, Part IX comes into operation on...
Part X of Act Ancillary Credit Businesses
Licensing
44(1) Section 21(1) does not apply (by virtue of section...
Enforcement of agreements made by unlicensed trader
45Section 148(1) does not apply to an agreement made in...
Introductions by unlicensed credit-broker
46Section 149 does not apply to a regulated agreement made...
Advertisements
47Subsections (1) and (2) of section 151 do not apply...
Credit reference agencies
48Sections 157 and 158 do not apply to a request...
Part XII of Act Supplemental
Interpretation
49(1) In the case of an agreement—
50In section 189, the definition of “local authority ” shall...
SCHEDULE 4. MINOR AND CONSEQUENTIAL AMENDMENTS
PART I UNITED KINGDOM
Bills of Sale Act (1878) Amendment Act 1882
1The following section shall be inserted after section 7 Default...
Factors Act 1889
2At the end of section 9 insert For the purposes...
3, 4. . . . . . . . . ....
Law of Distress Amendment Act 1908
5The following section shall be inserted after section 4— Hire...
Bankruptcy Act 1914
6The following section shall be inserted after section 38— Hire...
Compensation (Defence) Act 1939
7In section 13 after “hire-purchase agreement ” insert “or a...
8In section 17(1)— (1) After the definition of “aircraft ”...
Liability for War Damage (Miscellaneous Provisions) Act 1939
9In section 1(3), for paragraphs (a) and (b) substitute—
10. . . . . . . . . ....
Rag Flock and Other Filing Materials Act 1951
11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve and Auxiliary Forces (Protection of Civil Interest) Act 1951
12In section 4 for subsections (4), (5) and (6), substitute—...
13For section 10 substitute— Property in goods subject to hire-purchase...
14In section 64(I)— (1) after the definition of “compulsory national...
Clean Air Act 1956
15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restrictive Trade Practices Act 1956
17For section 26(3) substitute— (3) In this Part of this...
Housing Act 1957
18For section 94 substitute— Power to provide furniture. A local authority may fit out, furnish and supply any...
County Courts Act 1959
19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20, 21. . . . . . . . . ....
Hire Purchase Act 1964
22For Part III substitute the following (which reproduces the existing...
Emergency Laws (Re-enactment and Repeals) Act 1964
23In section 1— (1) In subsection (1) for “or credit-sale...
Trading Stamps Act 1964
24In section 2, for subsection (1) substitute—
25In section 3, for subsection (4) substitute—
26In section 10(1)— (1) after the definition of “cash value...
Housing (Scotland) Act 1966
27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trade Descriptions Act 1968
28In section 28, insert the following new subsection after subsection...
29. . . . . . . . . ....
Administration of Justice Act 1970
30After section 38 insert the following new section— This Part of this Act shall not apply to a...
31In section 54(6)(c) after “36 ” insert “38A ”.
Vehicles (Excise) Act 1971
32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33. . . . . . . . . ....
Counter-Inflation Act 1973
34In section 21(5)— (a) for “total purchase price or hire-purchase...
Supply of Goods (Implied Terms) Act 1973
35For sections 8 to 12 substitute the following sections (which...
36For sections 14 and 15 substitute the following sections (which...
Fair Trading Act 1973
37For section 138(5) substitute— (5) In subsection (4) of this...
Part II NORTHERN IRELAND
Irish Bankrupt and Insolvent Act 1857
38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bills of Sale (Ireland) Act (1879) Amendment Act 1883
39The following section shall be inserted after section 7:— Defaults...
Liability for War Damage (Miscellaneous Provisions) Act (Northern Ireland) 1939
40In section 1(3), for paragraph (a) and (b) substitute—
41, 42. . . . . . . . . ....
Trading Stamps Act (Northern Ireland) 1965
43In section 2, for subsection (1) substitute—
44In section 3, for subsection (4) substitute—
45In section 9— (1) after the definition of “cash value...
46, 47. . . . . . . . . ....
48. . . . . . . . . ....
Hire-Purchase Act (Northern Ireland) 1966
49For Part VI substitute the following (which reproduces the existing...
Vehicles (Excise) Act (Northern Ireland) 1972
50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972
51In section 1(2) for “VII ” where first occurring substitute...
Schedule 5 Repeals

Royal arms

Consumer Credit Act 1974

1974 CHAPTER 39

An Act to establish for the protection of consumers a new system, administered by the Director General of Fair Trading, of licensing and other control of traders concerned with the provision of credit, or the supply of goods on hire or hire-purchase, and their transactions, in place of the present enactments regulating moneylenders, pawnbrokers and hire-purchase traders and their transactions; and for related matters.