Consumer Credit (Exempt Agreements) Order 1977
| Jurisdiction | UK Non-devolved |
1977 No. 326
CONSUMER CREDIT
The Consumer Credit (Exempt Agreements) Order 197728thFebruary 1977
8thMarch 1977
1stApril 1977
The Secretary of State, after consulting in accordance with subsections (3) and (9) of section 16 of the Consumer Credit Act 1974(a) with the persons therein referred to, in exercise of powers conferred on him by sections 16(1) and (4) to (6) and 182(2) of that Act and of all other powers enabling him in that behalf, hereby makes the following Order:—
Citation, commencement and interpretation
1.—(1) This Order may be cited as the Consumer Credit (Exempt Agreements) Order 1977 and shall come into operation on 1st April 1977.
(2) In this Order—
"the Act" means the Consumer Credit Act 1974;
"business premises" means premises for occupation for the purposes of a business (including any activity carried on by a body of persons, whether corporate or unincorporate) or for those and other purposes;
and, except where the contrary intention appears, other expressions used in this Order have the same respective meanings as in the Act.
(3) The Interpretation Act 1889(b) shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament.
Exemption of certain consumer credit agreements secured on land
2.—(1) The Act shall not regulate a consumer credit agreement which falls within section 16(2) of the Act, being an agreement to which this paragraph applies.
(2) Where the creditor is a body specified in Part I of the Schedule to this Order, paragraph (1) applies only to—
(a) a debtor-creditor-supplier agreement falling within section 16(2)(a) of the Act;
(b) a debtor-creditor agreement secured by any land mortgage financing—
(i) the purchase of land; or
(a) 1974 c.39.
(b) 1889 c. 63.
(ii) the provision of dwellings or business premises on any land; or
(iii) the alteration, enlarging, repair or improvement of a dwelling or business premises on any land in a case where the creditor is the creditor under any agreement (whenever made) by which the debtor is provided with credit for any of the purposes specified in (i) and (ii) above, being an agreement relating to the land in question and secured by a land mortgage on that land;
(c) a debtor-creditor agreement secured by any land mortgage to refinance any existing indebtedness of the debtor's, whether to the creditor or another person, under any agreement by which the debtor was provided with credit for any of the purposes specified in (i) to (iii) of (b) above.
(3) Where the creditor is a body specified in Part II of the Schedule, paragraph (1) applies only to an agreement of a description specified in that Part in relation to that body and made pursuant to an enactment or for a purpose so specified.
Exemption of certain other consumer credit agreements
3.—(1) The Act shall not regulate a consumer credit agreement which is an agreement of one of the following descriptions, that is to say—
(a) a debtor-creditor-supplier agreement being either—
(i) any agreement for fixed-sum credit under which the number of payments to be made by the debtor does not exceed four; or
(ii) any agreement for running-account credit which provides for the making of payments by the debtor in relation to specified periods and requires that the number of payments to be made by the debtor in repayment of the whole amount of the credit provided in each such period shall not exceed one;
not being, in either case, an agreement of a description specified in paragraph (2) below; and in this sub-paragraph, "payment" means a payment comprising an amount in respect of credit with or without any other amount;
(b) any debtor-creditor-supplier agreement financing the purchase of land, being an agreement under which the number of payments to be made by the debtor does not exceed four; and in this sub-paragraph, "payment" means a payment comprising or including an amount in respect of credit or the total charge for credit (if any);
(c) any debtor-creditor agreement (other than an agreement under which the total amount to be repaid by the debtor to discharge his indebtedness in respect of the amount of credit provided may vary according to any formula specified in the agreement having effect by reference to movements in the level of any index or to any other factor) in respect of which the rate of the total charge for credit calculated in accordance with regulations (a) made under section 20(1) of the Act does not exceed the higher of the following, that is to say—
(i) the sum of one per cent and the minimum lending rate determined by the Bank of England, being the latest rate in operation on the date 28 days before the date on which the agreement is made; and
(ii) 13 per cent; and
(a) See S.I. 1977/327 (1977 I, p.945).
(d) any agreement made in connection with trade in goods or services between the United Kingdom and a country outside the United Kingdom or within a country or between countries outside the United Kingdom, being an agreement under which credit is provided to the debtor in the course of a business carried on by him.
(2) The descriptions of agreement referred to in paragraph (1)(a) above and to which accordingly that paragraph does not apply are—
(a) agreements financing the purchase of land;
(b) agreements which are conditional sale agreements or hire-purchase agreements; and
(c) agreements secured by a pledge (other than a pledge of documents of title).
Exemption of certain consumer hire agreements
4. The Act shall not regulate a consumer hire agreement where—
(a) the owner is a body corporate authorised by or under any enactment to supply electricity, gas or water and the subject of the agreement is a meter or metering equipment used or to be used in connection with the supply of electricity, gas or water, as the case may be; or
(b) the owner is the Post Office or the Kingston upon Hull City Council and the subject of the agreement is telecommunications apparatus comprising or forming part of a system, the running of which is subject to the provisions of sections 24 and 25 of the Post Office Act 1969(a) (which relate respectively to the exclusive privilege of the Post Office with respect to telecommunication and to general classes of acts not infringing that privilege), not being a telephone system provided for use solely between points within a single set of premises or solely within a vehicle, vessel, aircraft or hovercraft or solely between two or more vehicles, vessels, aircraft or hovercraft mechanically coupled together.
John Fraser, Minister of State, Department of Prices and Consumer Protection.
28th February 1977.
(a) 1969 c.48.
Article 2
SCHEDULE
Bodies whose agreements of the specified description are exempt agreements
PART I
Insurance Companies
Alliance Assurance Company Limited
American International Life Assurance Company of New York
American Life Insurance Company
Atlas Assurance Company Limited
Australian Mutual Provident Society
Avon Insurance Company Limited
The Bedford Life Assurance Society Limited
Bradford Insurance Company Limited
Britannic Assurance Company Limited
The British & European Insurance Company Limited
British Equitable Assurance Company Limited
The British Life Office Limited
The British Oak Insurance Company Limited
British Reserve Insurance Company Limited
Caledonian Insurance Company
The Cambrian Insurance Company Limited
The Canada Life Assurance Company
Cannon Assurance Limited
Car and General Insurance Corporation Limited
Clerical, Medical and...
To continue reading
Request your trial