Consumer Credit Act 1974

31 Compulsory variation. U.K.

(1) Where at a time during the currency of a licence the [F1 OFT] is of the opinion that, if the licence had expired at that time [F2 (assuming, in the case of a licence which has effect indefinitely, that it were a licence of limited duration)], [F3 it] would, on an application for its renewal or further renewal on the same terms (except as to expiry), have been minded to grant the application but on different terms, and that therefore [F4 it should take steps mentioned in subsection (1A)] , [F3 it] shall proceed as follows.

[F5 (1A) Those steps are—

(a) in the case of a standard licence, steps mentioned in section 30(1)(a)(ii) and (iii), (b), (c) and (e);

(b) in the case of a group licence, the varying of terms of the licence.]

[F6 (1B) The OFT shall also proceed as follows if, having regard to section 22(1B) to (1E), it is of the opinion—

(a) that a licence which has effect indefinitely should have its duration limited; or

(b) in the case of a licence of limited duration, that the period during which it has effect should be shortened.]

(2) In the case of a standard licence the [F1 OFT] shall, by notice—

(a) inform the licensee of the variations the [F1 OFT] is minded to make in the terms of the licence, stating [F7 its] reasons, and

[F8 (b) invite him to submit to the OFT in accordance with section 34 representations—

(i) as to the proposed variations; and

(ii) about the provision (if any) that should be included under section 34A as part of the determination were the OFT to vary the licence.]

(3) In the case of a group licence the [F1 OFT] shall—

(a) give general notice of the variations [F9 it] is minded to make in the terms of the licence, stating [F10 its] reasons, and

(b) in the notice invite any licensee to submit to [F11 it] representations as to the proposed variations in accordance with section 34.

(4) In the case of a group licence issued on application the [F1 OFT] shall also—

(a) inform the original applicant of the variations the [F1 OFT] is minded to make in the terms of the licence, stating [F12 its] reasons, and

(b) invite him to submit to the [F1 OFT] representations as to the proposed variations in accordance with section 34.

(5) If the [F1 OFT] is minded to vary a group licence by excluding any person (other than the original applicant) from the group by name the [F1 OFT] shall, in addition, take the like steps under section 28 as are required in the case mentioned in that section.

(6) General notice shall be given that a variation of any group licence has been made under this section.

(7) A variation under this section shall not take effect before the end of the appeal period.

[F13 (8) Subsection (1) shall have effect in relation to a standard licence as if an application could be made for the renewal or further renewal of the licence on the same terms (except as to expiry) even if such an application could not be made because of provision made in a general notice under section 24A(5).

(9) Accordingly, in applying subsection (1AA) of section 25 in relation to the licence for the purposes of this section, the OFT shall treat references in that subsection to the description or descriptions of business in relation to a type of business as references to the description or descriptions of business included in the licence in relation to that type of business, notwithstanding that provision under section 24A(5).]

Textual Amendments

F1 Words in s. 31 substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(a); S.I. 2003/766, art. 2, Sch. (with art. 3)

F2 Words in s. 31(1) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(4)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F3 Words in s. 31(1) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(b); S.I. 2003/766, art. 2, Sch. (with art. 3)

F4 Words in s. 31(1) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {31(2)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F5 S. 31(1A) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {31(3)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F6 S. 31(1B) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {34(5)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F7 Word in s. 31(2)(a) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(c); S.I. 2003/766, art. 2, Sch. (with art. 3)

F8 S. 31(2)(b) substituted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {32(4)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2

F9 Words in s. 31(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(d); S.I. 2003/766, art. 2, Sch. (with art. 3)

F10 Words in s. 31(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(d); S.I. 2003/766, art. 2, Sch. (with art. 3)

F11 Words in s. 31(3) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(d); S.I. 2003/766, art. 2, Sch. (with art. 3)

F12 Word in s. 31(4)(a) substituted (1.4.2003) by Enterprise Act 2002 (c. 40), ss. 278, 279, Sch. 25 para. 6(13)(e); S.I. 2003/766, art. 2, Sch. (with art. 3)

F13 S. 31(8)(9) inserted (6.4.2008) by Consumer Credit Act 2006 (c. 14), ss. {31(4)}, 71(2); S.I. 2007/3300, art. 3(2), Sch. 2