Consumer Credit Act 1974

Part II U.K. NORTHERN IRELAND

M1 Irish Bankrupt and Insolvent Act 1857 U.K.

Marginal Citations

M1 1857 c. 60.

X1 38 The following section shall be inserted after section 313—

“313A Hire-purchase etc. agreements.

“313A (1) Goods—

(a) bailed under a hire-purchase agreement or a consumer hire agreement, or

(b) agreed to be sold under a conditional sale agreement, or

(c) subject to a regulated agreement under which a bill of sale is given by way of security,

shall not during the period between—

(i) the service of a default notice under the Consumer Credit Act 1974 in respect of the goods, and

(ii) the date on which the notice expires or is earlier complied with,

be treated for the purposes of section 313 of this Act as goods which are by the consent and permission of the creditor, or (in the case of goods which are the subject of a consumer hir agreement) of the owner, in the possession, order or disposition of the person to whom they are bailed or agreed to be sold or who is the grantor of the bill of sale.

(2) In this section—

• “conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or other-wise as may be specified in the agreement are fulfilled ;

• “consumer hire agreement ” has the meaning given by section 15 of the Consumer Credit Act 1974 ;

• “creditor ” means the person bailing goods under a hire-purchase agreement or, as the case may be, the seller under a conditional sale agreement or the person providing credit under a regulated agreement, and includes the person to whom his rights and duties under the agreement have passed by assignment or operation of law ;

• “owner ” means a person who bails out goods under a consumer hire agreement or the person to whom his rights and duties under the agreement have been passed by assignment or operation of law ; and

• “regulated agreement ” has the meaning given by section 189 of the Consumer Credit Act 1974.;

• “hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—

(a) goods are bailed or (in Scotland) hired in return for periodical payments by the person to whom they are bailed or hired, and

(b) the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—

(i) the exercise of an option to purchase by that person,

(ii) the doing of any other specified act by any party to the agreement,

(iii) the happening of any other specified event.”

Editorial Information

X1 The text of Sch. 4 Pt. I paras. 6, 18 and Sch. 4 Pt. II para. 38 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and, except as specified, does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

M2 Bills of Sale (Ireland) Act (1879) Amendment Act 1883 U.K.

Marginal Citations

M2 1883 c. 7.

X2 39 U.K. The following section shall be inserted after section 7:—

“7A Defaults 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 insertion after “High Court ” of the words “or county court ”.”

Editorial Information

X2 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

M3 Liability for War Damage (Miscellaneous Provisions) Act (Northern Ireland) 1939 U.K.

Marginal Citations

M3 1939 c. 36 (N.I.)

X3 40 U.K. In section 1(3), for paragraph (a) and (b) substitute—

“(a) a hire-purchase agreement or a conditional sale agreement within the meaning of the Consumer Credit Act 1974 being a consumer credit agreement as defined by that Act ; or

(b) a consumer hire agreement within the meaning of that Act.”

Editorial Information

X3 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

41, 42. U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

Textual Amendments

F1 Sch. 4 Pt. II paras. 41, 42 repealed by S.I. 1981/158 (N.I. 14), art. 44(3), Sch. 5

M4 Trading Stamps Act (Northern Ireland) 1965 U.K.

Marginal Citations

M4 1965 c. 6 (N.I.).

X4 43 In section 2, for subsection (1) substitute—

“(1) No person shall after the coming into force of this section issue any trading stamp, or cause any trading stamp to be issued, or deliver any trading stamp to any person in connection with the sale of any goods, the bailment of any goods under a hire-purchase agreement or the performance of any services, unless such trading stamp bears on its face in clear and legible characters a value expressed in or by reference to current coin of the realm”.

Editorial Information

X4 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

X5 44 In section 3, for subsection (4) substitute—

“(4) In this section “redeemable trading stamps ” means trading stamps delivered after the coming into force of this section in accordance with a trading stamp scheme on or in connection with either—

(a) the purchase of any goods,

(b) the bailment of any goods under a hire-purchase agreement, or

(c) the obtaining of any services for money,

and “the holder ” in relation to such a trading stamp, means the person to whom it was so delivered or any person who holds it without notice of any defect in title.”

Editorial Information

X5 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

X6 45 In section 9—

(1) after the definition of “cash value ” insert—

“ “conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;”, and

(2) after the definition of “goods ” insert—

“ “hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—

(a) goods are bailed in retum for periodical payments by the person to whom they are bailed, and

(b) the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—

(i) the exercise of an option to purchase by that person,

(ii) the doing of any other specified act by any party to the agreement,

(iii) the happening of any other specified event:”

(3) For the definition of “trading stamp ” substitute—

“ “trading stamp ” means a stamp which is, or is intended to be, delivered to any person on or in connection with either—

(i) the purchase of any goods, or

(ii) the bailment of any goods under a hire-purchase agreement,

(other than the purchase of a newspaper or other periodical of which the stamp forms part or in which it is contained) and is, or is intended to be, redeemable (whether singly or together with other such stamps) by that or some other person:

Provided that a stamp shall not be deemed to be a trading stamp if—

(a) it is delivered or is intended to be delivered to a person (in this definition called “the purchaser ”) on or in connection with the purchase of any goods by the purchaser, or the bailment to him of any goods, and

(b) it is intended to be, and is not, redeemable from any person other than—

(i) the person (in this definition called “the selle ”) from whom the purchaser purchased those goods or who bailed those goods to him, or

(ii) any person from whom the seller (whether directly or indirectly) acquired those goods, and

(c) in the case where a business is carried on by six or more retail establishments, the stamp is one of a kind obtainable at no more than six of those retail establishments, and not obtainable by the public elsewhere, and the arrangements under which it is redeemable are entirely separate from arrangements under which any other stamps, whether trading stamps or not, are redeemable, and references in this definition to the purchase of goods include references to the obtaining of services for money.”.

Editorial Information

X6 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

46, 47. U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

Textual Amendments

F2 Sch. 4 Pt. II paras. 46, 47 repealed by Consumer Safety Act 1978 (c. 38), s. 12(1), Sch. 3

48 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

Textual Amendments

F3 Sch. 4 Pt. II para. 48 repealed by S.I. 1982/1083 (N.I. 15), art. 35(3), Sch. 5 Pt. I

M5 Hire-Purchase Act (Northern Ireland) 1966 U.K.

Marginal Citations

M5 1966 c. 42(N.I.)

X7 49 U.K. For Part VI substitute the following (which reproduces the existing provisions of that Part subject only to changes in terminology)—

“Part VI U.K. TITLE TO MOTOR VEHICLES ON HIRE-PURCHASE OR CONDITIONAL SALE

62 Protection of purchasers of motor vehicles.

(1) This section applies where a motor vehicle has, been bailed under a hire-purchase agreement, or has been agreed to be sold under a conditional sale agreement, and, before the property in the vehicle has become vested in the debtor, he disposes of the vehicle to another person.

(2) Where the disposition referred to in subsection (1) is to a private purchaser, and he is a purchaser of the motor vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement ”) that disposition shall have effect as if the creditor’s title to the vehicle had been vested in the debtor immediately before that disposition.

(3) Where the person to whom the disposition referred to in subsection (1) is made (the “original purchaser ”) is a trade or finance purchaser, then if the person who is the first private purchaser of the motor vehicle after that disposition ( “the first private purchaser ”) is a purchaser of the vehicle in good faith without notice of the relevant agreement, the disposition of the vehicle to the first private purchaser shall have effect as if the title of the creditor to the vehicle had been vested in the debtor immeffiatily before he disposed of it to the original purchaser.

(4) Where, in a case within subsection (3)—

(a) the disposition by which the first private purchaser becomes a purchaser of the motor vehicle in good faith without notice of the relevant agreement is itself a bailment under a hire-purchase agreement, and

(b) the person who is the creditor in relation to that agreement disposes of the vehicle to the first private purchaser, or a person claiming under him, by transferring to him the property in the vehicle in pursuance of a provision in the agreement in that behalf,

the, disposition referred to in paragraph (b) (whether or not the person to whom it is made is a purchaser in good faith without notice of the relevant agreement) shall, as well as the disposition referred to in paragraph (a), have effect as mentioned in subsection (3).

(5) The preceding provisions of this section apply—

(a) notwithstanding anything in section 21 of the Sale of Goods Act 1893 (sale of goods by a person not the owner), but

(b) without prejudice to the provisions of the Factors Act (as defined by section 62(1) of the said Act of 1893) or of any other enactment enabling the apparent owner of goods to dispose of them as if he were the true owner.

(6) Nothing in this section shall exonerate the debtor from any liability (whether criminal or civil) to which he would be subject apart from this section ; and, in a case where the debtor disposes of the motor vehicle to a trade or finance purchaser, nothing in this section shall exonerate—

(a) that trade or finance purchaser, or

(b) any other trade or finance purchaser who becomes a purchaser of the vehicle and is not a person claiming under the first private purchaser,

from any liability (whether criminal or civil) to which he would be subject apart from this section.

63 Presumptions relating to dealings with motor vehicles.

(1) Where in any proceedings (whether criminal or civil) relating to a motor vehicle it is proved—

(a) that the vehicle was bailed under a hire-purchase agreement, or was agreed to be sold under a conditional sale agreement, and

(b) that a person (whether a party to the proceedings or not) became a private purchaser of the vehicle in good faith without notice of the hire-purchase or conditional sale agreement (the “relevant agreement ”),

this section shall have effect for the purpose of the operation of section 62 of this Act in relation to those proceedings.

(2) It shall be presumed for those purposes, unless the contrary is proved, that the disposition of the vehicle to the person referred to in subsection (1)(b) (the “relevant purchaser ”) was made by the debtor.

(3) If it is proved that that disposition was not made by the debtor, then it shall be presumed for those purposes, unless the contrary is proved—

(a) that the debtor disposed of the vehicle to a private purchaser purchasing in good faith without notice of the relevant agreement and

(b) that the relevant purchaser is or was a person claiming under the person to whom the debtor so disposed of the vehicle.

(4) If it is proved that the disposition of the vehicle to the relevant purchaser was not made by the debtor, and that the person to whom the debtor disposed of the vehicle (the “original purchaser ”) was a trade or finance purchaser, then it shall be presumed for those purposes, unless the contrary is proved,—

(a) that the person who, after the disposition of the vehicle to the original purchaser, first became a private purchaser of the vehicle was a purchaser in good faith without notice of the relevant agreement, and

(b) that the relevant purchaser is or was a person claiming under the original purchaser.

(5) Without prejudice to any other method of proof, where in any proceedings a party thereto admits a fact, that fact shall, for the purposes of this section, be taken as against him to be proved in relation to those proceedings.

64 Interpretation of Part VI and application to the Crown.

(1) In this Part—

• “conditional sale agreement ” means an agreement for the sale of goods under which the purchase price or part of it is payable by instalments, and the property in the goods is to remain in the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;

• “creditor ” means the person by whom goods are bailed under a hire-purchase agreement or, as the case may be, the seller under a conditional sale agreement, or the person to whom his rights and duties have passed by assignment or operation of law ;

• “disposition ” means any sale or contract of sale (including a conditional sale agreement), any bailment under a hire-purchase agreement and any transfer of the property in goods in pursuance of a provision in that behalf contained in a hire-purchase agreement, and includes any transaction purporting to be a disposition (as so defined), and “dispose of ” shall be construed accordingly;

• “hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—

(a) goods are bailed in return for periodical payments by the person to whom they are bailed, and

(b) the property in the goods will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—

(i) the exercise of an option to purchase by that person,

(ii) the doing of any other specified act by any party to the agreement,

(iii) the happening of any other specified event, and “motor vehicle ” means a mechanically propelled vehicle intended or adapted for use on roads to which the public has access.

(2) In this Part “trade or finance purchaser ” means a purchaser who, at the time of the disposition made to him, carries on a business which consists, wholly or partly,—

(a) of purchasing motor vehicles for the purpose of offering or exposing them for sale, or

(b) of providing finance by purchasing motor vehicles for the purpose of bailing them under hire-purchase agreements or agreeing to sell them under conditional sale agreements,

and “private purchaser ” means a purchaser who, at the time of the disposition made to him, does not carry on any such business.

(3) For the purposes of this Part a person becomes a purchaser of a motor vehicle if, and at the time when, a disposition of the vehicle is made to him ; and a person shall be taken to be a purchaser of a motor vehicle without notice of a hire-purchase agreement or conditional sale agreement if, at the time of the disposition made to him, he has no actual notice that the vehicle is or was the subject of any such agreement.

(4) In this Part the “debtor ”, in relation to a motor vehicle which has been bailed under a hire-purchase agreement or, as the case may be, agreed to be sold under a conditional sale agreement, means the person who at the material time (whether the agreement has before that time been terminated or not) either—

(a) is the person to whom the vehicle is bailed under that agreement or

(b) is, in relation to the agreement, the buyer, including a person who at that time is, by virtue of section 130(4) of the Consumer Credit Act 1974 treated as a bailee of the vehicle.

(5) In this Part any reference to the title of the creditor to a motor vehicle which has been bailed under a hire-purchase agreement, or agreed to be sold under a conditional sale agreement, and is disposed of by the debtor, is a reference to such title (if any) to the vehicle as, immediately before that disposition, was vested in the person who then was the creditor in relation to the agreement.

(6) This Part binds the Crown to the full extent authorised or permitted by the constitutional laws of Northern Ireland.”.

Editorial Information

X7 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

M6 Vehicles (Excise) Act (Northern Ireland) 1972 U.K.

Marginal Citations

M6 1972 c. 10 (N.I.).

X8 50 In section 35(1)—

(a) before the definition of “gas ” insert —

“ “conditional sale agreement ” means an agreement for the sale of a vehicle under which the purchase price or part of it is payable by instalments, and the property, in the vehicle is to remain in the seller (notwithstanding, that the buyer is to be in possession of the vehicle) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled ;”.

(b) for the definition of “hackney carriage ” substitute—

“ “hackney carriage ” means a mechanically propelled vehicle standing or plying for hire and includes any mechanically propelled vehicle bailed under a hire agreement by a person whose trade it is to sell such vehicles or bail them under hire agreements ;”.

(c) After the definition of “hackney carriage ” insert—

“ “hire agreement ” means an agreement for the bailment of a vehicle which is not a hire-purchase agreement ;

“hire-purchase agreement ” means an agreement, other than a conditional sale agreement, under which—

(a) a vehicle is bailed in return for periodical payments by the person to whom it is bailed, and

(b) the property in the vehicle will pass to that person if the terms of the agreement are complied with and one or more of the following occurs—

(i) the exercise of an option to purchase by that person,

(ii) the doing of any other specified act by any party to the agreement,

(iii) the happening of any other specified event;”.

Editorial Information

X8 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

M7 Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972 U.K.

Marginal Citations

M7 1972 c. II (N.I.).

X9 51 U.K. In section 1(2) for “VII ” where first occurring substitute “V ” and for “to VIII ” where secondly occurring substitute “and V ”.

Editorial Information

X9 The text of ss. 3(a)(b)(c), 5, 42(1)(2)(3), 192(3)(a)(b), Sch. 4 Pt. I paras. 1, 2, 5, 7 - 9, 11 - 17, 19, 22 - 28, 30 - 32, 34 - 37, Sch. 4 Pt. II paras. 39, 40, 43 -45, 49 - 51 and Sch. 5 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.