Consumer Credit Act 1974

148 Agreement for services of unlicensed trader. U.K.

(1) An agreement for the services of a person carrying on an ancillary credit business (the “trader ”), if made when the trader was unlicensed, is enforceable against the other party (the “customer ”) only where the [F1 OFT] has made an order under subsection (2) which applies to the agreement.

(2) The trader or his successor in title may apply to the [F1 OFT] for an order that agreements within subsection (1) are to be treated as if made when the trader was licensed.

(3) Unless the [F1 OFT] determines to make an order under subsection (2) in accordance with the application, [F2 it] shall, before determining the application, by notice—

(a) inform the trader, giving [F3 its] reasons, that, as the case may be, [F2 it] is minded to refuse the application, or to grant it in terms different from those applied for, describing them, and

(b) invite the trader to submit to the [F1 OFT] representations in support of his application in accordance with section 34.

(4) In determining whether or not to make an order under subsection (2) in respect of any period the [F1 OFT] shall consider, in addition to any other relevant factors,—

(a) how far, if at all, customers, under agreements made by the trader during that period were prejudiced by the trader’s conduct,

(b) whether or not the [F1 OFT] would have been likely to grant a licence covering that period on an application by the trader, and

(c) the degree of culpability for the failure to obtain a licence.

(5) If the [F1 OFT] thinks fit, [F4 it] may in an order under subsection (2)—

(a) limit the order to specified agreements, or agreements of a specified description or made at a specified time;

(b) make the order conditional on the doing of specified acts by the trader.

[F5 (6) This section does not apply to an agreement made by a consumer credit EEA firm unless at the time it was made that firm was precluded from entering into it as a result of—

(a) a consumer credit prohibition imposed under section 203 of the Financial Services and Markets Act 2000; or

(b) a restriction imposed on the firm under section 204 of that Act.]

Textual Amendments

F1 Words in s. 148 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(28)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

F2 Words in s. 148(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(28)(b)(i); S.I. 2003/766, art. 2, Sch. (with art. 3)

F3 Word in s. 148(3)(a) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(28)(b)(ii); S.I. 2003/766, art. 2, Sch. (with art. 3)

F4 Word in s. 148(5) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(28)(c); S.I. 2003/766, art. 2, Sch. (with art. 3)

F5 S. 148(6) inserted (1.12.2001) by S.I. 2001/3649, art. 173

Modifications etc. (not altering text)

C1 S. 148 restricted (1.1.1998) by S.I. 1992/3218, reg. 61(2)

S. 148 modified (1.1.1996) by S.I. 1995/3275, reg. 38(2)