Businesses requiring a licence and consequences of not being licensed

25Credit information services

1

In subsection (1) of section 145 of the 1974 Act (types of ancillary credit business) before paragraph (e) insert—

db

the provision of credit information services, or

2

Before subsection (8) of that section insert—

7B

A person provides credit information services if—

a

he takes any steps mentioned in subsection (7C) on behalf of an individual; or

b

he gives advice to an individual in relation to the taking of any such steps.

7C

Those steps are steps taken with a view—

a

to ascertaining whether a credit information agency (other than that person himself if he is one) holds information relevant to the financial standing of an individual;

b

to ascertaining the contents of such information held by such an agency;

c

to securing the correction of, the omission of anything from, or the making of any other kind of modification of, such information so held; or

d

to securing that such an agency which holds such information—

i

stops holding it; or

ii

does not provide it to another person.

7D

In subsection (7C) ‘credit information agency’ means—

a

a person carrying on a consumer credit business or a consumer hire business;

b

a person carrying on a business so far as it comprises or relates to credit brokerage, debt-adjusting, debt-counselling, debt-collecting, debt administration or the operation of a credit reference agency;

c

a person carrying on a business which would be a consumer credit business except that it comprises or relates to consumer credit agreements being, otherwise than by virtue of section 16(5)(a), exempt agreements; or

d

a person carrying on a business which would be a consumer hire business except that it comprises or relates to consumer hire agreements being, otherwise than by virtue of section 16(6), exempt agreements.

3

In section 151 of that Act (advertisements relating to ancillary credit businesses)—

a

in subsection (2) for “or” substitute “to” and after “liquidation of debts” insert “or to provide credit information services”;

b

in subsection (3) for “or debt-counselling” substitute “, debt-counselling or the provision of credit information services”;

c

in subsection (4) after “advertisement” insert “(other than one for credit information services)”.

4

In each of the following provisions of that Act for “or debt-counselling” substitute “, debt-counselling or the provision of credit information services”—

a

section 152(1) (application of sections 52 to 54 to ancillary credit businesses);

b

section 154 (prohibition of canvassing ancillary credit business off trade premises);

c

section 156 (regulations about agreements entered into for ancillary credit businesses).

5

In section 189(1) of that Act (definitions) after the definition of “credit brokerage” insert—

‘credit information services’ has the meaning given by section 145(7B).