The Consumer Credit (Agreements) (Amendment) Regulations 2004

Cited as:SI 2004/1482
Jurisdiction:UK Non-devolved

2004No. 1482

CONSUMER CREDIT

The Consumer Credit (Agreements) (Amendment) Regulations 2004

5thJune2004

9thJune2004

31stMay2005

The Secretary of State, in exercise of the powers conferred upon her by sections 60, 61(1)(a), 105(9), 114(1), 182(2) and 189(1) of the Consumer Credit Act 1974( 1), hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Consumer Credit (Agreements) (Amendment) Regulations 2004 and shall come into force on 31st May 2005.

Amendment of the Consumer Credit (Agreements) Regulations 1983

2. The Consumer Credit (Agreements) Regulations 1983( 2) shall be amended as follows.

3. - (1) Regulation 1(2) (interpretation) shall be amended as follows.

(2) Insert at the appropriate place -

" "contract of shortfall insurance" means anything in writing which contains or purports to contain some promise or assurance (however worded or presented) that if a sum payable under a contract of insurance against loss of or damage to goods is less than the amount necessary to defray -

(a) any amount of credit provided to finance the purchase of those goods; and(b) any other amount included in the total charge for that credit,

to the extent that these remain unpaid at the date of the loss or damage, a sum up to but not exceeding that shortfall will be paid.""

(3) In the definition of "total charge for credit" after the words "Total Charge for Credit Regulations" insert "and Schedule 7 to these Regulations".

4. For regulation 2 (form and content of regulated consumer credit agreements) substitute -

Form and content of regulated consumer credit agreements

2. - (1) Subject to paragraphs (2) and (9) below documents embodying regulated consumer credit agreements (other than modifying agreements) shall contain the information set out in Column 2 of Schedule 1 to these Regulations in so far as it relates to the type of agreement referred to in Column 1.

(2) Where any information about financial and related particulars set out in paragraphs 9 to 11 of Schedule 1 to these Regulations cannot be exactly ascertained by the creditor, estimated information based on the assumptions referred to in paragraph 10 of that Schedule, where applicable, and otherwise such assumptions as the creditor may reasonably make in all the circumstances of the case and a statement of the assumptions made shall be included in documents embodying regulated consumer credit agreements.

(3) Subject to paragraph (9) below, documents embodying regulated consumer credit agreements, other than agreements of the description specified in the Schedule to the Consumer Credit (Notices of Cancellation Rights) (Exemptions) Regulations 1983( 3) in relation to which there are no charges forming part of the total charge for credit (in this regulation referred to as "exempted agreements"), shall contain statements of the protection and remedies available to debtors under the Act, in the Form numbered in Column 1 of Part 1 of Schedule 2 to these Regulations and set out in Column 3, in so far as they relate to the type of agreement referred to in Column 2.

(4) Subject to paragraphs (5) and (9) below, the information, statements of the protection and remedies, signature and separate boxes which this regulation requires documents embodying regulated consumer credit agreements to contain, shall be set out in the order given by paragraphs (a) to (f) below under, where applicable, the headings specified below -

(a) the nature of the agreement as set out in paragraph 1 of Schedule 1 to these Regulations;(b) the parties to the agreement as set out in paragraph 2 of Schedule 1 to these Regulations;(c) under the heading "Key Financial Information", the financial and related particulars set out in paragraphs 6 to 8B and 11 to 17 of Schedule 1 to these Regulations;(d) under the heading "Other Financial Information", the financial and related particulars set out in paragraphs 3 to 5, 9, 10, 14A and 18 to 19A of Schedule 1 to these regulations;(e) under the heading "Key Information" - (i) the information set out in paragraphs 20 to 24 of Schedule 1 to these Regulations; and(ii) the statements of protection and remedies set out in Schedule 2 to these Regulations; and(f) the signature box and, where applicable, the separate box required by paragraph (7)(b) below;

and such information, statements of protection and remedies, signature and separate boxes shall be shown together as a whole and shall not be preceded by any information apart from trade names, logos or the reference number of the agreement or interspersed with any other information or wording apart from subtotals of total amounts and cross references to the terms of the agreement.

(5) In the case of documents embodying restricted-use debtor-creditor-supplier agreements for fixed-sum credit to finance a transaction comprising the acquisition of goods, services, land or other things specified in the agreement or identified and agreed on at the time the agreement is made and relating to more than one description of goods, services, land or other things, the cash prices, and the total cash price, referred to in paragraph 4 of Schedule 1 to these Regulations may be shown in a schedule to such document together with each description of the goods, services, land or other things, provided that the total cash price and a reference to the schedule to such document are shown together with the information required by paragraph (4)(d) above.

(6) The APR referred to in paragraphs 15 to 17 of Schedule 1 to these Regulations shall in documents embodying regulated consumer credit agreements, other than exempted agreements -

(a) be denoted as "APR" or "annual percentage rate" or "annual percentage rate of the total charge for credit; and(b) where it is subject to change, be accompanied by the word "variable".

(7) Documents embodying regulated consumer credit agreements other than exempted agreements shall, subject to paragraph (9) below, contain a signature box in the Form numbered in Column 1 of Part 1 of Schedule 5 to these Regulations and set out in Column 3 in so far as it relates to the type of agreement referred to in Column 2 and shall -

(a) if - (i) the documents embody a principal agreement and subsidiary agreement to which paragraph (9) below applies; or(ii) at the time of entering into the agreement the debtor is also purchasing an optional contract of insurance which will be financed by credit advanced under that agreement,

contain a form of consent in the Form set out in Part III of Schedule 5 immediately below the signature box required by this paragraph; and

(b) if the agreement is one to which section 58(1) of the Act applies, is a cancellable agreement or is an agreement under which a person takes any article in pawn and under which the pawn-receipt is not separate from the document embodying the agreement, contain a separate box immediately above, below or adjacent to the signature box in which shall be included the appropriate statements specified in Forms 1 and 4 to 6 of Part 1, and in Part II, of Schedule 2.

(8) Paragraph (9) applies to documents embodying a debtor-creditor-supplier agreement falling within section 12(a) of the Act or a debtor-creditor agreement (in this paragraph and paragraph (9) in either case referred to as "the principal agreement") and also embodying, or containing the option of, a debtor-creditor-supplier agreement falling within section 12(b) of the Act (in this paragraph and paragraph (9) referred to as "the subsidiary agreement") where the subsidiary agreement is to finance a premium under one or more of -

(a) a contract of insurance to provide a sum payable in the event of the death of a debtor or a debtor suffering one or more of the following: - (i) accident;(ii) sickness; and(iii) unemployment,

at any time before the credit under the principal agreement and the subsidiary agreement has been repaid, where the sum payable does not exceed the amount sufficient to defray the sums payable to the creditor in respect of that credit and of the total charge for credit and where the policy monies payable under the contract of insurance are to be used for a repayment under the principal agreement and the subsidiary agreement;

(b) a contract of shortfall insurance; and(c) a contract of insurance in so far as it relates to the guarantee of goods.

(9) Documents to which this paragraph applies may contain instead of the headings specified in paragraph 1 of Schedules 1 or 8 to these Regulations, statements of protection and remedies available to debtors under the Act and signature boxes that would otherwise apply -

(a) a heading and signature box in so far as they relate to the principal agreement;(b) a statement in Form 14 of Part I of Schedule 2 to these Regulations; and(c) other statements (other than in Form 16 of Part I of Schedule 2) of the protection and remedies available to debtors under the Act in so far as they relate to the principal agreement.

(10) Documents embodying regulated consumer credit agreements shall embody any security provided in relation to the regulated agreement by the debtor.".

5. - (1) Regulation 3 (form and content of regulated consumer hire agreements) shall be amended as follows.

(2) For paragraph 4 substitute -

" (4) Subject to paragraph (5) below the information, statements of the protection and remedies, signature and separate boxes which this regulation requires documents embodying regulated consumer hire agreements to contain, shall be set out in the order given by paragraphs (a) to (e) below under, where applicable, the headings specified below: -

(a) the nature of the agreement as set out in paragraph 1 of Schedule 3 to these Regulations;(b) the parties to the agreement as set out in paragraph 2 of Schedule 3 to these Regulations;(c) under the heading "Key Financial Information", the financial and related particulars set out in paragraphs 3 to 8 of Schedule 3 to these...

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