The following section shall be inserted after section 7

“7A Default under consumer credit agreements.

(1)

Paragraph (1) of section 7 of this Act does not apply to a default relating to a bill of sale given by way of security for the payment of money under a regulated agreement to which section 87(1) of the Consumer Credit Act 1974 applies —

(a)

unless the restriction imposed by section 88(2) of that Act has ceased to apply to the bill of sale ; or

(b)

if, by virtue of section 89 of that Act, the default is to be treated as not having occurred.

(2)

Where paragraph (1) of section 7 of this Act does apply in relation to a bill of sale such as is mentioned in subsection (1) of this section, the proviso to that section shall have effect with the substitution of “county court ” for “High Court ”.”