2012 No. 2798
The Consumer Credit (Green Deal) Regulations 2012
Made
Laid before Parliament
Coming into force
Section 95(1) was amended by S.I. 2010/1010, regulation 31.
Section 95B was inserted by the Energy Act 2011 (c.16), section 29(2) and extends to England and Wales and Scotland only. Section 95B was commenced on 21st March 2012 for the purposes of enabling the exercise, on or after that day, of any power to make regulations conferred by that section (see S.I. 2012/873, article 3). This section is yet to be commenced for remaining purposes.
Section 97(1) was amended by S.I. 2010/1010, regulation 33(a).
Section 182(2) was amended by the Consumer Credit Act 2006 (c.14), section 58(3) and S.I. 2009/1835, Schedule 1, paragraph 7(b).
Citation, commencement and extent1
These Regulations—
a
may be cited as the Consumer Credit (Green Deal) Regulations 2012;
b
come into force on 28th January 2013; and
c
extend to England and Wales and Scotland only.
Interpretation2
In these Regulations—
“the 1974 Act” means the Consumer Credit Act 1974;
“actual plan interest” means the total amount of interest that falls due for payment under the green deal plan between the settlement date and the full discharge date if early settlement takes place;
“administration amount” means the amount by which the creditor expects its administration costs will be reduced in consequence of early settlement taking place;
“compensatory amount” means the amount that a creditor is entitled to claim under section 95B(2) of the 1974 Act, calculated in accordance with regulation 4;
“early settlement” means, as appropriate, full early settlement or partial early settlement;
“expected plan interest” means the total amount of interest that falls due for payment by the debtor under the green deal plan between the settlement date and the full discharge date if early settlement does not take place;
“full discharge date” means the date fixed by the green deal plan for the discharge in full of the indebtedness of the debtor;
“full early settlement” means the discharge in full, pursuant to section 94(1) M7 of the 1974 Act, of the debtor's indebtedness under a green deal plan;
“green deal plan” has the meaning given in section 1 of the Energy Act 2011 M8;
“notice date” means the date on which the creditor receives notice from the debtor under, as appropriate, section 94(1) or section 94(4)(a) M9 of the 1974 Act, in connection with early settlement;
“partial early settlement” means the discharge in part, pursuant to section 94(3) M10 of the 1974 Act, of the debtor's indebtedness under a green deal plan;
“replacement interest” means F1... the total amount of interest that the creditor could obtain by lending the settlement amount on the market on the notice date;
“settlement amount” means, in respect of—
- a
full early settlement, the amount payable by the debtor to the creditor under section 94(1) of the 1974 Act, excluding any amount which the creditor claims under section 95A(2) or 95B(2) of the 1974 Act; or
- b
partial early settlement, the amount paid or to be paid by the debtor to the creditor pursuant to the notice provided by the debtor under section 94(4)(a) of the 1974 Act; and
- a
“settlement date” means—
- a
the date falling 28 days after the notice date; or
- b
any later date specified by the debtor in the notice under, as appropriate, section 94(1) or section 94(4)(a) of the 1974 Act as the date of early settlement,
if the debtor pays the amount payable not later than that date.
- a
Specified duration of green deal plan under section 95B(1)(b) of the 1974 Act3
For the purposes of section 95B(1)(b) of the 1974 Act, the specified duration of a green deal plan is a plan of more than 15 years.
Compensatory amount: method of calculation4
1
Subject to paragraph (3), for the purposes of section 95B(3)(c) of the 1974 Act, the compensatory amount is the amount given by the following formula—
2
The following apply for the purposes of the formula in paragraph (1)—
“A” means the expected plan interest;
“B” means the replacement interest;
“C” means the administration amount; and
“D” means—
- a
where full early settlement takes place or is to take place, zero; or
- b
where partial early settlement takes place or is to take place, the actual plan interest.
- a
3
If the amount given by the formula in paragraph (1) is zero or less, for the purposes of section 95B(3)(c) of the 1974 Act, the compensatory amount is zero.
Amendment of consumer credit regulations5
The Schedule to these Regulations has effect.
SCHEDULEAmendment of consumer credit regulations
The Consumer Credit (Agreements) Regulations 19831
1
The Consumer Credit (Agreements) Regulations 1983 M11 are amended as follows.
2
In paragraph 24A (statement regarding debtor's right of early repayment) M12 of Schedule 1 (information to be contained in documents embodying regulated consumer credit agreements other than modifying agreements), for “section 95A”, substitute “
sections 95A and 95B
”
.
3
In paragraph 24A (statement regarding debtor's right of early repayment) M13 in Part I (information to be contained in documents embodying regulated modifying agreements varying or supplanting earlier credit agreements) of Schedule 8 (regulated modifying agreements), for “section 95A”, substitute “
sections 95A and 95B
”
.
The Consumer Credit (Settlement Information) Regulations 19832
The Consumer Credit (Early Settlement) Regulations 20043
1
The Consumer Credit (Early Settlement) Regulations 2004 M16 are amended as follows.
2
In regulation 1(2) (interpretation) M17, at the appropriate place, insert—
“green deal plan” has the meaning given in section 1 of the Energy Act 2011;
3
In regulation 4A(2) (calculation of the amount of rebate where indebtedness is discharged in part) M18, after “95A(2)”, insert “
or 95B(2)
”
.
4
In regulation 6 (deferment of settlement date)—
a
regulation 6 is renumbered as paragraph (1) of that regulation;
b
after paragraph (1) as so renumbered, insert—
2
Paragraph (1) does not apply where the agreement is a green deal plan and the creditor under that plan is claiming a payment under section 95B(2) of the Act.
The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 20074
1
The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 M19 are amended as follows.
2
In regulation 2 (interpretation), at the appropriate place, insert—
“green deal plan” has the meaning given in section 1 of the Energy Act 2011;
3
In regulation 4(b) (content of statements), before “each”, insert “
except where sub-paragraph (ba) applies,
”
.
4
In regulation 4 (content of statements), after paragraph (b), insert—
ba
where the statement relates to a green deal plan, each of the forms of wording set out in Part 2A of Schedule 1;
5
In Schedule 1, after Part 2 (information to be included in statements relating to fixed-sum credit agreements) insert—
PART 2AINFORMATION TO BE INCLUDED IN STATEMENTS RELATING TO FIXED-SUM CREDIT AGREEMENTS WHICH ARE GREEN DEAL PLANS
4A
Each of the following forms of wording shall be contained in a statement under this Part—
The Consumer Credit (Disclosure of Information) Regulations 20105
In paragraph 4 (other important legal aspects) of Schedule 1 (pre-contract credit information) to the Consumer Credit (Disclosure of Information) Regulations 2010 M20, in column 2 of the second row of the table, after “section 95A” insert “
(and, where applicable, section 95B)
”
.
The Consumer Credit (Agreements) Regulations 20106
In paragraph 28 (early repayment) of Schedule 1 (information to be included in regulated consumer credit agreements) to the Consumer Credit (Agreements) Regulations 2010 M21, in column 3 of the table, for “section 95A”, substitute “
sections 95A and 95B
”
.
Section 77A was inserted by the Consumer Credit Act 2006 (c.14), section 6.