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.