Part X Ancillary Credit Businesses
Definitions
145 Types 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,
F1da
debt administration,
F2db
the provision of credit information services, or
e
the operation of a credit reference agency.
F282
“Credit brokerage” means the carrying on of an activity of the kind specified by article 36A(1)(a) to (c) of the Regulated Activities Order (credit broking), disregarding the effect of paragraph (2) of that article.
F295
“Debt adjusting” means the carrying on of an activity of the kind specified by article 39D of that Order (debt adjusting).
F306
“Debt-counselling” means the carrying on of an activity of the kind specified by article 39E of that Order (debt-counselling).
F317
“Debt-collecting” means the carrying on of an activity of the kind specified by article 39F of that Order (debt-collecting).
F327A
“Debt administration” means the carrying on of an activity of the kind specified by article 39G of that Order (debt administration), disregarding the effect of paragraph (3) of that article.
F337B
A person (“P”) provides credit information services if P carries on, by way of business, an activity of the kind specified by article 89A(1) or (2) of that Order (providing credit information services).
F348
A person (“P”) operates a credit reference agency if P carries on, by way of business, an activity of the kind specified by article 89B of that Order (providing credit references).
F41146 Exceptions from section 145.
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F41...
F41147 Application of Part III.
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F41C1148 Agreement for services of unlicensed trader.
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F41C2149 Regulated agreements made on introductions by unlicensed credit-broker.
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F41150 Appeals to Secretary of State against licensing decisions.
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Seeking business
F41151F41 Advertisements.
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F41152F41 Application of sections 52 to 54 to credit brokerage etc.
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153F41 Definition of canvassing off trade premises (agreements for ancillary credit services).
1
An individual (the “canvasser ”) canvasses off trade premises the services of a person carrying on an ancillary credit business if he solicits the entry of another individual (the “consumer ”) into an agreement for the provision to the consumer of those services by making oral representations to the consumer, or any other individual, during a visit by the canvasser to any place (not excluded by subsection (2)) where the consumer, or that other individual as the case may be, is, being a visit—
a
carried out for the purpose of making such oral representations to individuals who are at that place, but
b
not carried out in response to a request made on a previous occasion.
2
A place is excluded from subsection (1) if it is a place where (whether on a permanent or temporary basis)—
a
the ancillary credit business is carried on, or
b
any business is carried on by the canvasser or the person whose employee or agent the canvasser is, or by the consumer.
154F41 Prohibition of canvassing certain ancillary credit services off trade premises.
It is an offence to canvass off trade premises the services of a person carrying on a business of credit-brokerage, debt-adjusting F3, debt-counselling or the provision of credit information services.
155 Right to recover brokerage fees.
1
F4Subject to subsection (2A),the excess over F5£5 of a fee or commission for his services charged by a credit-broker to an individual to whom this subsection applies shall cease to be payable or, as the case may be, shall be recoverable by the individual if the introduction does not result in his entering into a relevant agreement within the six months following the introduction (disregarding any agreement which is cancelled under section 69(1) or becomes subject to section 69(2)).
2
Subsection (1) applies to an individual who sought an introduction for a purpose which would have been fulfilled by his entry into—
a
a regulated agreement, or
b
in the case of an individual F35desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by that individual or a relative of that individual, an agreement for credit secured on land,
F36c
a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order, or
d
an agreement which is not a regulated credit agreement or a regulated consumer hire agreement but which would be such an agreement if the law applicable to the agreement were the law of a part of the United Kingdom.
F62A
But subsection (1) does not apply where—
a
the fee or commission relates to the effecting of an introduction of a kind mentioned in F37article 36E of the Regulated Activities Order (activities in relation to certain agreements relating to land); and
b
the person charging that fee or commission is an authorised person or an appointed representative, within the meaning of the Financial Services and Markets Act 2000.
3
An agreement is a relevant agreement for the purposes of subsection (1) in relation to an individual if it is an agreement such as is referred to in subsection (2) in relation to that individual.
4
In the case of an individual desiring to obtain credit under a consumer credit agreement, any sum payable or paid by him to a credit-broker otherwise than as a fee or commission for the credit-broker’s services shall for the purposes of subsection (1) be treated as such a fee or commission if it enters, or would enter, into the total charge for credit.
F25...
F25156 Entry into agreements.
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Credit reference agencies
C3157 Duty to disclose name etc. of agency.
F7A1
Where a creditor under a prospective regulated agreement, other than an excluded agreement, decides not to proceed with it on the basis of information obtained by the creditor from a credit reference agency, the creditor must, when informing the debtor of the decision—
a
inform the debtor that this decision has been reached on the basis of information from a credit reference agency, and
b
provide the debtor with the particulars of the agency including its name, address and telephone number.
1
F8In any other case, a creditor, owner or negotiator, within the prescribed period after receiving a request in writing to that effect from the debtor or hirer, shall give him notice of the name and address of any credit reference agency from which the creditor, owner or negotiator has, during the antecedent negotiations, applied for information about his financial standing.
2
Subsection (1) does not apply to a request received more than 28 days after the termination of the antecedent negotiations, whether on the making of the regulated agreement or otherwise.
F92A
A creditor is not required to disclose information under this section if such disclosure—
c
would create or be likely to create a serious risk that any person would be subject to violence or intimidation, or
d
would, or would be likely to, prejudice—
i
the prevention or detection of crime,
ii
the apprehension or prosecution of offenders, or
iii
the administration of justice.
3
If the creditor, owner or negotiator fails to comply with subsection F10(A1) or (1) he commits an offence.
F114
For the purposes of subsection (A1) an agreement is an excluded agreement if it is—
a
a consumer hire agreement, or
b
an agreement secured on land.
C3158 Duty of agency to disclose filed information.
1
A credit reference agency, within the prescribed period after receiving,—
F12a
a request in writing to that effect from a consumer,
b
such particulars as the agency may reasonably require to enable them to identify the file, and
c
a fee of F13£2,
shall give the consumer a copy of the file relating to F14it kept by the agency.
2
When giving a copy of the file under subsection (1), the agency shall also give the consumer a statement in the prescribed form of F15the consumer’s rights under section 159.
3
If the agency does not keep a file relating to the consumer it shall give F15the consumernotice of that fact, but need not return any money paid.
4
If the agency contravenes any provision of this section it commits an offence.
F164A
In this section ‘consumer’ means—
a
a partnership consisting of two or three persons not all of whom are bodies corporate; or
b
an unincorporated body of persons which does not consist entirely of bodies corporate and is not a partnership.
5
In this Act “file ”, in relation to an individual, means all the information about him kept by a credit reference agency, regardless of how the information is stored, and “copy of the file ”, as respects information not in plain English, means a transcript reduced into plain English.
C3159 Correction of wrong information.
F171
Any individual (the “objector ”) given—
a
b
information under section 158,
who considers that an entry in his file is incorrect, and that if it is not corrected he is likely to be prejudiced, may give notice to the agency requiring it either to remove the entry from the file or amend it.
2
Within 28 days after receiving a notice under subsection (1), the agency shall by notice inform the F18objector that it has—
a
removed the entry from the file, or
b
amended the entry, or
c
taken no action,
and if the notice states that the agency has amended the entry it shall include a copy of the file so far as it comprises the amended entry.
3
Within 28 days after receiving a notice under subsection (2), or where no such notice was given, within 28 days after the expiry of the period mentioned in subsection (2), the F18objector may, unless he has been informed by the agency that it has removed the entry from his file, serve a further notice on the agency requiring it to add to the file an accompanying notice of correction (not exceeding 200 words) drawn up by the F18objector, and include a copy of it when furnishing information included in or based on that entry.
4
5
If—
a
the F18objector has not received a notice under subsection (4) within the time required, or
b
it appears to the agency that it would be improper for it to publish a notice of correction because it is incorrect, or unjustly defames any person, or is frivolous or scandalous, or is for any other reason unsuitable,
6
If a person to whom an order under this section is directed fails to comply with it within the period specified in the order he commits an offence.
F197
The F20Information Commissioner may vary or revoke any order made by him under this section.
8
In this section “the relevant authority ” means—
a
where the objector is a partnership or other unincorporated body of persons, the F26FCA, and
b
in any other case, the F20Information Commissioner.
C3160 Alternative procedure for business consumers.
1
The F27FCA , on an application made by a credit reference agency, may direct that this section shall apply to the agency if F21it is satisfied—
a
that compliance with section 158 in the case of consumers who carry on a business would adversely affect the service provided to its customers by the agency, and
b
that, having regard to the methods employed by the agency and to any other relevant factors, it is probable that consumers carrying on a business would not be prejudiced by the making of the direction.
2
Where an agency to which this section applies receives a request, particulars and a fee under section 158(1) from a consumer who carries on a business, and section 158(3) does not apply, the agency, instead of complying with section 158, may elect to deal with the matter under the following subsections.
3
Instead of giving the consumer a copy of the file, the agency shall within the prescribed period give notice to the consumer that it is proceeding under this section, and by notice give the consumer such information included in or based on entries in the file as the F27FCA may direct, together with a statement in the prescribed form of the consumer’s rights under subsections (4) and (5).
4
If within 28 days after receiving the information given F22to the consumer under subsection (3), or such longer period as the F27FCA may allow, the consumer—
b
5
Section 159 applies with any necessary modifications to information given to the consumer under this section as it applies to information given under section 158.
6
If an agency making an election under subsection (2) fails to comply with subsection (3) or (4) it commits an offence.
F247
In this section “consumer ” has the same meaning as in section 158.
F40160ACredit intermediaries
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S. 156 and cross-heading omitted (26.7.2013 for specified purposes, 1.4.2014 in so far as not already in force) by virtue of The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), arts. 1(2)(6), 20(44)