PART XAncillary Credit Businesses
Definitions
145Types of ancillary credit business
1
An ancillary credit business is any business so far as it comprises or relates to—
a
credit brokerage,
b
debt-adjusting,
c
debt-counselling,
d
debt-collecting, or
e
the operation of a credit reference agency.
2
Subject to section 146(5), credit brokerage is the effecting of introductions—
a
of individuals desiring to obtain credit—
i
to persons carrying on businesses to which this sub-paragraph applies, or
ii
in the case of an individual desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by himself or his relative, to any person carrying on a business in the course of which he provides credit secured on land, or
b
of individuals desiring to obtain goods on hire to persons carrying on businesses to which this paragraph applies, or
c
of individuals desiring to obtain credit, or to obtain goods on hire, to other credit-brokers.
3
Subsection (2)(a)(i) applies to—
a
a consumer credit business ;
b
a business which comprises or relates to consumer credit agreements being, otherwise than by virtue of section 16(5)(a), exempt agreements;
c
a business which comprises or relates to unregulated agreements where—
i
the proper law of the agreement is the law of a country outside the United Kingdom, and
ii
if the proper law of the agreement were the law of a part of the United Kingdom it would be a regulated consumer credit agreement.
4
Subsection (2)(b) applies to—
a
a consumer hire business ;
b
a business which comprises or relates to unregulated agreements where—
i
the proper law of the agreement is the law of a country outside the United Kingdom, and
ii
if the proper law of the agreement were the law of a part of the United Kingdom it would be a regulated consumer hire agreement.
5
Subject to section 146(6), debt-adjusting is, in relation to debts due under consumer credit agreements or consumer hire agreements.—
a
negotiating with the creditor or owner, on behalf of the debtor or hirer, terms for the discharge of a debt, or
b
taking over, in return for payments by the debtor or hirer, his obligation to discharge a debt, or
c
any similiar activity concerned with the liquidation of a debt.
6
Subject to section 146(6), debt-counselling is the giving of advice to debtors or hirers about the liquidation of debts due under consumer credit agreements or consumer hire agreements.
7
Subject to section 146(6), debt-collecting is the taking of steps to procure payment of debts due under consumer credit agreements or consumer hire agreements.
8
A credit reference agency is a person carrying on a business comprising the furnishing of persons with information relevant to the financial standing of individuals, being information collected by the agency for that purpose.
146Exceptions from section 145
1
A barrister or advocate acting in that capacity is not to be treated as doing so in the course of any ancillary credit business.
2
A solicitor engaging in contentious business (as defined in section 86(1) of the [1957 c. 27.] Solicitors Act 1957) is not to be treated as doing so in the course of any ancillary credit business.
3
A solicitor within the meaning of the [1933 c. 21.] Solicitors (Scotland) Act 1933 engaging in business done in or for the purposes of proceedings before a court or before an arbiter is not to be treated as doing so in the course of any ancillary credit business.
4
A solicitor in Northern Ireland engaging in business done, whether as solicitor or advocate, in or for the purposes of proceedings begun before a court (including the Lands Tribunal for Northern Ireland) or before an arbitrator appointed under the [1937 c. 8 (N.I.).] Arbitration Act (Northern Ireland) 1937, not being business contained in section 2 of the [1857 c. 79.] Probates and Letters of Administration Act (Ireland) 1857, is not to be treated as doing so in the course of any ancillary credit business.
5
For the purposes of section 145(2), introductions effected by an individual by canvassing off trade premises either debtor-creditor-supplier agreements falling within section 12(a) or regulated consumer hire agreements shall be disregarded if—
a
the introductions are not effected by him in the capacity of an employee, and
b
he does not by any other method effect introductions falling within section 145(2).
6
It is not debt-adjusting, debt-counselling or debt-collecting for a person to do anything in relation to a debt arising under an agreement if—
a
he is the creditor or owner under the agreement, otherwise than by virtue of an assignment, or
b
he is the creditor or owner under the agreement by virtue of an assignment made in connection with the transfer to the assignee of any business other than a debt-collecting business, or
c
he is the supplier in relation to the agreement, or
d
he is a credit-broker who has acquired the business of the person who was the supplier in relation to the agreement, or
e
he is a person prevented by subsection (5) from being treated as a credit-broker, and the agreement was made in consequence of an introduction (whether made by him or another person) which, under subsection (5), is to be disregarded.