PART 3AMENDMENTS TO THE CONSUMER CREDIT ACT 1974

Exceptions from section 14521

1

In section 145 of the Consumer Credit Act 1974 (types of ancillary credit business)3—

a

in subsection (2), after “section 146(5)” insert “and (5A)”;

b

in subsection (5), for “section 146(6)” substitute “section 146(5B) and (6)”; and

c

in subsection (6), for “section 146(6)” substitute “section 146(5C) and (6)”.

2

In section 146 of that Act (exceptions from section 145)4, after subsection (5) insert—

5A

It is not credit brokerage for a person to effect the introduction of an individual desiring to obtain credit if the introduction is made—

a

to an authorised person, within the meaning of the 2000 Act, who has permission under that Act to enter as lender into relevant agreements; or

b

to a qualifying broker,

with a view to that individual obtaining credit under a relevant agreement.

5B

It is not debt-adjusting for a person to carry on an activity mentioned in paragraph (a), (b) or (c) of section 145(5) if—

a

the debt in question is due under a relevant agreement; and

b

that activity is a regulated activity for the purposes of the 2000 Act.

5C

It is not debt-counselling for a person to give advice to debtors about the liquidation of debts if—

a

the debt in question is due under a relevant agreement; and

b

giving that advice is a regulated activity for the purposes of the 2000 Act.

5D

In this section—

  • “the 2000 Act” means the Financial Services and Markets Act 2000;

  • “relevant agreement” means a consumer credit agreement which is secured by a land mortgage, where entering into that agreement as lender is a regulated activity for the purposes of the 2000 Act;

  • “qualifying broker” means a person who may effect introductions of the kind mentioned in subsection (5A) without contravening the general prohibition, within the meaning of section 19 of the 2000 Act,

  • and references to “regulated activities” and the definition of “qualifying broker” must be read with—

    1. a

      section 22 of the 2000 Act (regulated activities: power to specify classes of activity and categories of investment);

    2. b

      any order for the time being in force under that section; and

    3. c

      Schedule 2 to that Act.