226AConsumer credit jurisdiction

1

A complaint which relates to an act or omission of a person (“the respondent”) is to be dealt with under the ombudsman scheme if the conditions mentioned in subsection (2) are satisfied.

2

The conditions are that—

a

the complainant is eligible and wishes to have the complaint dealt with under the scheme;

b

the complaint falls within a description specified in consumer credit rules;

c

at the time of the act or omission the respondent was the licensee under a standard licence or was authorised to carry on an activity by virtue of section 34A of the Consumer Credit Act 1974;

d

the act or omission occurred in the course of a business being carried on by the respondent which was of a type mentioned in subsection (3);

e

at the time of the act or omission that type of business was specified in an order made by the Secretary of State; and

f

the complaint cannot be dealt with under the compulsory jurisdiction.

3

The types of business referred to in subsection (2)(d) are—

a

a consumer credit business;

b

a consumer hire business;

c

a business so far as it comprises or relates to credit brokerage;

d

a business so far as it comprises or relates to debt-adjusting;

e

a business so far as it comprises or relates to debt-counselling;

f

a business so far as it comprises or relates to debt-collecting;

g

a business so far as it comprises or relates to debt administration;

h

a business so far as it comprises or relates to the provision of credit information services;

i

a business so far as it comprises or relates to the operation of a credit reference agency.

4

A complainant is eligible if—

a

he is—

i

an individual; or

ii

a surety in relation to a security provided to the respondent in connection with the business mentioned in subsection (2)(d); and

b

he falls within a class of person specified in consumer credit rules.

5

The approval of the Treasury is required for an order under subsection (2)(e).

6

The jurisdiction of the scheme which results from this section is referred to in this Act as the “consumer credit jurisdiction”.

7

In this Act “consumer credit rules” means rules made by the scheme operator with the approval of the Authority for the purposes of the consumer credit jurisdiction.

8

Consumer credit rules under this section may make different provision for different cases.

9

Expressions used in the Consumer Credit Act 1974 have the same meaning in this section as they have in that Act.