The Consumer Credit Act 1974 (Commencement No. 2) Order 1977

• Citation: S.I. 1977/325
• Sections: 9

Section 1 Citation and interpretation

(1) This Order may be cited as the Consumer Credit Act 1974 (Commencement No. 2) Order 1977.

(2) In this Order, “ the Act ” means the Consumer Credit Act 1974.

(3) The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament.

Section 2 Appointment of days

(1) For the purposes of paragraphs 1 and 19 of Schedule 3 to the Act, the appointed day shall be 1st April 1977.

(2) For the purposes of paragraphs 12, 42 and 48 of that Schedule the appointed day shall be 16th May 1977.

(3) For the purposes of paragraph 5 of that Schedule, the appointed day shall be 1st October 1977—

(a) in the case of any consumer credit business, not being a consumer credit business which is carried on by an individual and in the course of which only the following regulated consumer credit agreements (excluding agreements made before that date) are made, namely—

(i) agreements for fixed-sum credit not exceeding £30, and

(ii) agreements for running-account credit where the credit limit does not exceed that amount, and

(b) in the case of any consumer hire business.

Section 3 Amendments to Schedule 3 to the Act

(1) Paragraphs 1 to 3 of Schedule 1 to this Order shall have effect for the purposes of amending Schedule 3 to the Act so as to insert express references to the days appointed by article 2 above.

(2) Paragraph 4 of Schedule 1 to this Order shall have effect for the purposes of further amending paragraphs 44 and 45 of Schedule 3 to the Act (which makes certain transitional provisions in relation to the licensing of ancillary credit business) as amended by article 3(b) of The Consumer Credit Act 1974 (Commencement No. 1) Order 1975 , and accordingly the said article 3(b) shall cease to have effect.

Section 4 Amendments to other Acts

The amendments specified in Schedule 4 to the Act which are set out in Schedule 2 to this Order shall come into operation on the dates specified in that Schedule.

Section 5 Repeals

The repeals specified in Schedule 5 to the Act which are set out in Schedule 3 to this Order shall come into operation on the dates specified in that Schedule and shall have effect subject to the limitations there specified.

Section 1

There shall be substituted for the words “the day appointed for the purposes of this paragraph” , wherever they occur—

(a) in paragraphs 1 and 19 the words “1st April 1977” ; and

(b) in paragraphs 12(1), 42 and 48 the words “16th May 1977” .

Section 2

Paragraph 5 is amended so as to have effect as follows (the amendments being, for convenience, shown in bold type):

Businesses needing a licence

(5)

(1) Section 21 does not apply to the carrying on of any description of consumer credit business or consumer hire business—

(a) before 1st October 1977 in the case of a consumer credit business, not being a consumer credit business which is carried on by an individual and in the course of which only the following regulated consumer credit agreements (excluding agreements made before that date) are made, namely —

(i) agreements for fixed-sum credit not exceeding £30, and

(ii) agreements for running-account credit where the credit limit does not exceed that amount ,

(b) before the day appointed for the purposes of this paragraph in the case of any other description of consumer credit business, and

(c) before 1st October 1977 in the case of any consumer hire business .

(2) Where the person carrying on any description of consumer credit business or consumer hire business applies for a licence before the day specified or referred to in subparagraph (1) above in relation to a business of that description, he shall be deemed to have been granted on that day a licence covering that business and continuing in force until the licence applied for is granted or, if the application is refused, until the end of the appeal period.

Section 3

Paragraph 7 is amended so as to have effect as follows (the amendments being, for convenience, shown in bold type):

Enforcement of agreements made by unlicensed trader

(7) Section 40 does not apply to a regulated agreement made in the course of any business before the day specified or referred to in paragraph 5(1) in relation to the description of business in question .

Section 4

Paragraphs 44 and 45 are further amended so as to have effect as follows (the amendments being made to those paragraphs as originally enacted and being, for convenience, shown in bold type):

Licensing

(44)

(1) Section 21(1) does not apply (by virtue of section 147(1)) to the carrying on of any ancillary credit business before 3rd August 1976 in the case of any business so far as it comprises or relates to —

(a) debt-adjusting ,

(b) debt-counselling ,

(c) debt-collecting, or

(d) the operation of a credit reference agency ,

or the day appointed for the purposes of this paragraph in the case of any ancillary credit business so far as it comprises or relates to credit brokerage .

(2) Where the person carrying on an ancillary credit business applies for a licence before 3rd August 1976 or the day appointed for the purposes of this paragraph in the case of any ancillary credit business so far as it comprises or relates to credit brokerage , he shall be deemed to have been granted on 3rd August 1976 or, as the case may be, the day so appointed, a licence covering the description of ancillary credit business in question and continuing in force until the licence applied for is granted or, if the application is refused, until the end of the appeal period.

Enforcement of agreements made by unlicensed trader

(45) Section 148(1) does not apply to an agreement made in the course of any business before 3rd August 1976 in the case of any business so far as it comprises or relates to —

(a) debt-adjusting ,

(b) debt-counselling ,

(c) debt-collecting, or

(d) the operation of a credit reference agency ,

or the day appointed for the purposes of paragraph 44 in the case of any ancillary credit business so far as it comprises or relates to credit brokerage .