The Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020

2020 No. 1248

Consumer Credit

The Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020

Made 10th November 2020

Laid before Parliament 11th November 2020

Coming into force 2nd December 2020

The Treasury, in exercise of the powers conferred by sections 76(3), 88(1), 88(4), 98(3), 182(2)(c), and 189(1) of the Consumer Credit Act 19741, make the following Regulations.

S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Consumer Credit (Enforcement, Default and Termination Notices) (Coronavirus) (Amendment) Regulations 2020 and come into force on 2nd December 2020.

S-2 Interpretation

Interpretation

2. In these Regulations, “the 1983 Regulations” means the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 19832.

S-3 Amendment of the 1983 Regulations

Amendment of the 1983 Regulations

3. The 1983 Regulations are amended in accordance with regulations 4 to 8 below.

S-4 Content of a default notice

Content of a default notice

4. In regulation 2(2)(c), for the words from “8A” to “11”, substitute “and 9 to 13”.

S-5 Prominence of specified statements

Prominence of specified statements

5.—(1) Regulation 2(5) is amended as follows.

(2) In the opening words—

(a)

(a) for “in a form specified in”, substitute “given prominence by”; and

(b)

(b) after “heading to the notice”, insert “, sub-heading within the notice”.

(3) In sub-paragraph (a), omit from “(whether” to “or otherwise)”.

(4) For sub-paragraph (b), substitute—

“(b)

“(b) such prominence is only to be afforded by bold print or underlining.”

S-6 Alteration of specified wording

Alteration of specified wording

6.—(1) Regulation 2(6) is amended as follows.

(2) For “The wording in any such statement”, substitute “Where any statement is required to be in a form specified in a Schedule to these Regulations and is reproduced in the notice, its wording”.

(3) After “addition”, insert “, in the same letter case”.

S-7 Permissible alterations

Permissible alterations

7. After regulation 2(6), insert—

S-6A

6A. Despite paragraph (6)—

(a) the words “or a surety” may—

be omitted where there is no surety, or

be replaced by “or a guarantor” where the surety is a guarantor,

(b) the words “, typically a guarantor,” may be omitted where the surety is not a guarantor.”

S-8 Form of enforcement, default and termination notices

Form of enforcement, default and termination notices

8. Schedules 1, 2, and 3 are amended in accordance with the Schedule to these Regulations.

S-9 Transitional provisions

Transitional provisions

9.—(1) This regulation applies to a notice served in accordance with the requirements of the 1983 Regulations as they were in force immediately prior to commencement of these Regulations.

(2) For a period of six months beginning on 2nd December 2020, a notice to which this regulation applies will be deemed to comply with the 1983 Regulations, as amended by these Regulations.

Maggie Throup

David Duguid

Two of the Lords Commissioners of Her Majesty’s Treasury

10th November 2020

SCHEDULE

Regulation 8

Amendments to Schedules 1, 2 and 3 to the Consumer Credit (Enforcement, Default and Termination Notices) Regulations 1983

1 Amendments to Schedule 1

PART 1

Amendments to Schedule 1

SCH-1.1

1 Schedule 1 is amended as follows.

SCH-1.2

(1)2 In paragraph 6, for the wording following “time order—”, substitute—

“If you have difficulty in paying any sum owed under this agreement, you can apply to the court for an order to give you [or a surety] more time to pay any sum owed or take any other action required by this notice. The Government’s Money Advice Service can help you explore this option.

[A surety, typically a guarantor, is someone who provided security to help ensure any amount you owe under this agreement is repaid.]”

Notes:

(1) This statement must immediately follow the statement specified in paragraph 6.

(2) The creditor or owner must omit the final sentence in square brackets where either regulation 2(6A)(a)(i) or (ii) has been exercised.”

(2) Paragraph 6 is renumbered as paragraph 7.

SCH-1.3

(1)3 In paragraph 7, for the wording following “form—”, substitute—

“If you are not sure what to do, you should get help as soon as possible. The Government’s Money Advice Service can help you find free debt advice and support.”

(2) Paragraph 7 is renumbered as paragraph 6.

SCH-1.4

4 For paragraph 8, for the wording following “form—”, substitute—

Important –you should read this carefully

Notes:

(1) This statement must be placed at the top of the notice.

(2) This statement must be given prominence in accordance with regulation 2(5).”

2 Amendments to Schedule 2

PART 2

Amendments to Schedule 2

SCH-1.1

1 For Schedule 2, substitute—

SCHEDULE 2

Regulation 2(2)

FORM OF DEFAULT NOTICE BEFORE A CREDITOR OR OWNER CAN BECOME ENTITLED, BY REASON OF ANY BREACH BY THE DEBTOR OR HIRER OF A REGULATED AGREEMENT, TO TERMINATE THE AGREEMENT, DEMAND EARLIER PAYMENT OF ANY SUM, RECOVER POSSESSION OF ANY GOODS OR LAND, TREAT ANY RIGHT CONFERRED ON THE DEBTOR OR HIRER BY THE AGREEMENT AS TERMINATED, RESTRICTED OR DEFERRED OR ENFORCE ANY SECURITY

SCH-1.1

1. Details of agreement

A description of the agreement sufficient to identify it.

SCH-1.2

2. Parties to agreement

(1) The name and a postal address of the creditor or owner.

(2) The name and a postal address of the debtor or hirer.

SCH-1.3

3. Details of breach of agreement and action required to remedy, or pay compensation for, the breach

A specification of—

(a) the provision of the agreement alleged to have been breached; and

(b) the nature of the alleged breach of the agreement, specifying clearly the matters complained of; and either

(c) if the breach is capable of remedy, what action is required to remedy it and the date, being a date not less than fourteen days after the date of service of the notice, before which that action is to be taken; or

(d) if the breach is not capable of remedy, the sum (if any) required to be paid as compensation for the breach and the date, being a date not less than fourteen days after the date of service of the notice, before which it is to be paid.

SCH-1.4

4. Action by the creditor or owner to be ineffective if breach remedied or compensation paid

Where any action is specified under paragraph 3(c) or (d) as required to be taken, a statement that the provision for the taking of any action by the creditor or owner such as is mentioned in paragraph 6 will be ineffective if the breach is duly remedied or the compensation is duly paid in the following form—

“If the action required by this notice is takenbefore the date shown, the action below will not be taken in respect of the breach.”

Notes:

(1) This statement must follow the specification under paragraph 3(c) or (d) of any action required to be taken.

(2) This statement must be followed by the statement required by paragraph 5.

(3) The wording in bold print must be given prominence in accordance with regulation 2(5).

SCH-1.5

5. Consequences of failure to comply with default notice

Where any action is specified under paragraph 3(c) or (d) as required to be taken, a statement indicating the consequences of the failure by the debtor or hirer to comply with the default notice in the following form—

“If you donottake the action...

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