Consumer Credit Act 1974, Part VI is up to date with all changes known to be in force on or before 20 September 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
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Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1) If the debtor under a debtor-creditor-supplier agreement falling within section 12(b) or (c) has, in relation to a transaction financed by the agreement, any claim against the supplier in respect of a misrepresentation or breach of contract, he shall have a like claim against the creditor, who, with the supplier, shall accordingly be jointly and severally liable to the debtor.
(2) Subject to any agreement between them, the creditor shall be entitled to be indemnified by the supplier for loss suffered by the creditor in satisfying his liability under subsection (1), including costs reasonably incurred by him in defending proceedings instituted by the debtor.
(3) Subsection (1) does not apply to a claim—
(a) under a non-commercial agreement, F1. . .
(b) so far as the claim relates to any single item to which the supplier has attached a cash price not exceeding [ F2 £100 ] or more than [ F3 £30,000 ] [ F4 , or ]
[ F5 (c) under a debtor-creditor-supplier agreement for running-account credit—
(i) which provides for the making of payments by the debtor in relation to specified periods which, in the case of an agreement which is not secured on land, do not exceed three months, and
(ii) which requires that the number of payments to be made by the debtor in repayments of the whole amount of the credit provided in each such period shall not exceed one. ]
(4) This section applies notwithstanding that the debtor, in entering into the transaction, exceeded the credit limit or otherwise contravened any term of the agreement.
(5) In an action brought against the creditor under subsection (1) he shall be entitled, in accordance with rules of court, to have the supplier made a party to the proceedings.
Modifications etc. (not altering text)
C1 S. 75 applied (with modifications) by 1967 c. 7, s. 2(5) (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Consumer Protection (Amendment) Regulations 2014 (S.I. 2014/870), regs. 1(3), 5)
C2 S. 75 applied (with modifications) by 1967 c. 14 (N.I.) s. 2(5) (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Consumer Protection (Amendment) Regulations 2014 (S.I. 2014/870), regs. 1(3), 6)
C3 S. 75 applied (with modifications) by 1985 c. 73, s. 10(4) (as inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Consumer Protection (Amendment) Regulations 2014 (S.I. 2014/870), regs. 1(3), 8)
(1) If the debtor under a linked credit agreement has a claim against the supplier in respect of a breach of contract the debtor may pursue that claim against the creditor where any of the conditions in subsection (2) are met.
(2) The conditions in subsection (1) are—
(a) that the supplier cannot be traced,
(b) that the debtor has contacted the supplier but the supplier has not responded,
(c) that the supplier is insolvent, or
(d) that the debtor has taken reasonable steps to pursue his claim against the supplier but has not obtained satisfaction for his claim.
(3) The steps referred to in subsection (2)(d) need not include litigation.
(4) For the purposes of subsection (2)(d) a debtor is to be deemed to have obtained satisfaction where he has accepted a replacement product or service or other compensation from the supplier in settlement of his claim.
(5) In this section “ linked credit agreement ” means a regulated consumer credit agreement which serves exclusively to finance an agreement for the supply of specific goods or the provision of a specific service and where—
(a) the creditor uses the services of the supplier in connection with the preparation or making of the credit agreement, or
(b) the specific goods or provision of a specific service are explicitly specified in the credit agreement.
(6) This section does not apply where—
(a) the cash value of the goods or service is £30,000 or less,
(b) the linked credit agreement is for credit which exceeds £60,260 [ F7 and is not a residential renovation agreement ] , or
(c) the linked credit agreement is entered into by the debtor wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.
[ F8 (7) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (6)(c). ]
(8) This section does not apply to an agreement secured on land. ]
F7 Words in s. 75A(6)(b) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 2(7) (with Pt. 4)
Modifications etc. (not altering text)
(1) The creditor or owner is not entitled to enforce a term of a regulated agreement by—
(a) demanding earlier payment of any sum, or
(b) recovering possession of any goods or land, or
(c) treating any right conferred on the debtor or hirer by the agreement as terminated, restricted or deferred,
except by or after giving the debtor or hirer not less than seven days’ notice of his intention to do so.
(2) Subsection (1) applies only where—
(a) a period for the duration of the agreement is specified in the agreement, and
(b) that period has not ended when the creditor or owner does an act mentioned in subsection (1),
but so applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified.
(3) A notice under subsection (1) is ineffective if not in the prescribed form.
(4) Subsection (1) does not prevent a creditor from treating the right to draw on any credit as restricted or deferred and taking such steps as may be necessary to make the restriction or deferment effective.
(5) Regulations may provide that subsection (1) is not to apply to agreements described by the regulations.
(6) Subsection (1) does not apply to a right of enforcement arising by reason of any breach by the debtor or hirer of the regulated agreement.
Modifications etc. (not altering text)
(1) The creditor under a regulated agreement for fixed-sum credit, within the prescribed period after receiving a request in writing to that effect from the debtor and payment of a fee of [ F9 £1 ] , shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it, together with a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—
(a) the total sum paid under the agreement by the debtor;
(b) the total sum which has become payable under the agreement by the debtor but remains unpaid, and the various amounts comprised in that total sum, with the date when each became due; and
(c) the total sum which is to become payable under the agreement by the debtor, and the various amounts comprised in that total sum, with the date, or mode of determining the date, when each becomes due.
(2) If the creditor possesses insufficient information to enable him to ascertain the amounts and dates mentioned in subsection (1)(c), he shall be taken to comply with that paragraph if his statement under subsection (1) gives the basis on which, under the regulated agreement, they would fall to be ascertained.
[ F10 (2A) Subsection (2B) applies if the regulated agreement is a green deal plan [ F11 (within the meaning of section 1 of the Energy Act 2011) ] .
(2B) The duty imposed on the creditor by subsection (1) may be discharged by another person acting on the creditor's behalf. ]
(3) Subsection (1) does not apply to—
(a) an agreement under which no sum is, or will or may become, payable by the debtor, or
(b) a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.
(4) If the creditor under an agreement fails to comply with subsection (1)—
(a) he is not entitled, while the default continues, to enforce the agreement; F12. . .
(5) This section does not apply to a non-commercial agreement.
F12 S. 77(4)(b) and preceding word repealed (26.5.2008) by The Consumer Protection from Unfair Trading Regulations 2008 (S.I. 2008/1277) regs. 30(1)(3), Sch. 2 para. 19, (with savings in reg. 28(2)(3))
Modifications etc. (not altering text)
[ F14 (1) The creditor under a regulated agreement for fixed-sum credit must give the debtor statements under this section.
(1A) The statements must relate to consecutive periods.
(1B) The first such period must begin with either—
(a) the day on which the agreement is made, or
(b) the day the first movement occurs on the debtor's account with the creditor relating to the agreement.
(1C) No such period may exceed a year.
(1D) For the purposes of subsection (1C), a period of a year which expires on a non-working day may be regarded as expiring on the next working day.
(1E) Each statement under this section must be given to the debtor before the end of the period of thirty days beginning with the day after the end of the period to which the statement relates. ]
(2) Regulations may make provision about the form and content of statements under this section.
[ F15 (2A) Subsection (2B) applies if the regulated agreement is a green deal plan [ F16 (within the meaning of section 1 of the Energy Act 2011) ] .
(2B) Any duty imposed on the creditor by this section may be discharged by another person acting on the creditor's behalf. ]
(3) The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of a statement under this section.
(4) The creditor is not required to give the debtor any statement under this section once the following conditions are satisfied—
(a) that there is no sum payable under the agreement by the debtor; and
(b) that there is no sum which will or may become so payable.
(5) Subsection (6) applies if at a time before the conditions mentioned in subsection (4) are satisfied the creditor fails to give the debtor—
(a) a statement under this section within the period mentioned in subsection [ F17 (1E) ] ; F18 .
(6) Where this subsection applies in relation to a failure to give a statement under this section to the debtor—
(a) the creditor shall not be entitled to enforce the agreement during the period of non-compliance;
(b) the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and
(c) the debtor shall have no liability to pay any default sum which (apart from this paragraph)—
(i) would have become payable during the period of non-compliance; or
(ii) would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).
(7) In this section ‘the period of non-compliance’ means, in relation to a failure to give a statement under this section to the debtor, the period which—
(a) begins immediately after the end of the period mentioned in F19 . . . subsection (5); and
(b) ends at the end of the day on which the statement is given to the debtor or on which the conditions mentioned in subsection (4) are satisfied, whichever is earlier.
(8) This section does not apply in relation to a non-commercial agreement or to a small agreement.
[ F20 (9) This section does not apply where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit. ] ]
Modifications etc. (not altering text)
(1) This section applies to a regulated consumer credit agreement—
(a) which is for fixed-sum credit,
(b) which is of fixed duration,
(c) where the credit is repayable in instalments by the debtor, and
(d) which is not an excluded agreement.
(2) Upon a request from the debtor, the creditor must as soon as reasonably practicable give to the debtor a statement in writing which complies with subsections (3) to (5).
(3) The statement must include a table showing the details of each instalment owing under the agreement as at the date of the request.
(4) Details to be provided under subsection (3) must include—
(a) the date on which the instalment is due,
(b) the amount of the instalment,
(c) any conditions relating to payment of the instalment, and
(d) a breakdown of the instalment showing how much of it is made up of capital repayment, interest payment and other charges.
(5) Where the rate of interest is variable or the charges under the agreement may be varied, the statement must also indicate clearly and concisely that the information in the table is valid only until the rate of interest or charges are varied.
(6) The debtor may make a request under subsection (2) at any time that the agreement is in force unless a previous request has been made less than a month before and has been complied with.
(7) The debtor shall have no liability to pay any sum in connection with the preparation or the giving of a statement under this section.
[ F22 (7A) Subsection (7B) applies if the regulated agreement is a green deal plan [ F23 (within the meaning of section 1 of the Energy Act 2011) ] .
(7B) The duty imposed on the creditor by this section may be discharged by another person acting on the creditor's behalf. ]
(8) A breach of the duty imposed by this section is actionable as a breach of statutory duty.
(9) For the purposes of this section, an agreement is an excluded agreement if it is—
(a) an agreement secured on land,
(b) an agreement under which a person takes an article in pawn,
(c) an agreement under which the creditor provides the debtor with credit which exceeds £60,260 [ F24 and which is not a residential renovation agreement ] , or
(d) an agreement entered into by the debtor wholly or predominantly for the purpose of a business carried on, or intended to be carried on, by him.
[ F25 (10) Article 60C(5) and (6) of the Regulated Activities Order applies for the purposes of subsection (9)(d). ] ]
F24 Words in s. 77B(9)(c) inserted (20.4.2015 for specified purposes, 21.12.2015 for specified purposes, 21.3.2016 in so far as not already in force) by The Mortgage Credit Directive Order 2015 (S.I. 2015/910), art. 1(5), Sch. 1 para. 2(8) (with Pt. 4)
Modifications etc. (not altering text)
(1) The creditor under a regulated agreement for running-account credit, within the prescribed period after receiving a request in writing to that effect from the debtor and payment of a fee of [ F26 £1 ] , shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it, together with a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer,—
(a) the state of the account, and
(b) the amount, if any currently payable under the agreement by the debtor to the creditor, and
(c) the amounts and due dates of any payments which, if the debtor does not draw further on the account, will later become payable under the agreement by the debtor to the creditor.
[ F27 (1A) Where a request under subsection (1) also amounts to a request under regulation 49 of the Payment Services Regulations 2017 (information during period of contract), subsection (1) applies as if the words “and payment of a fee of £1” were omitted. ]
(2) If the creditor possesses insufficient information to enable him to ascertain the amounts and dates mentioned in subsection (1)(c), he shall be taken to comply with that paragraph if his statement under subsection (1) gives the basis on which, under the regulated agreement, they would fall to be ascertained.
(3) Subsection (1) does not apply to—
(a) an agreement under which no sum is, or will or may become, payable by the debtor, or
(b) a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.
(4) Where running-account credit is provided under a regulated agreement, the creditor shall give the debtor statements in the prescribed form, and with the prescribed contents—
(a) showing according to the information to which it is practicable for him to refer, the state of the account at regular intervals of not more than twelve months, and
(b) where the agreement provides, in relation to specified periods, for the making of payments by the debtor, or the charging against him of interest or any other sum, showing according to the information to which it is practicable for him to refer the state of the account at the end of each of those periods during which there is any movement in the account.
[ F28 (4A) Regulations may require a statement under subsection (4) to contain also information in the prescribed terms about the consequences of the debtor—
(a) failing to make payments as required by the agreement; or
(b) only making payments of a prescribed description in prescribed circumstances. ]
(5) A statement under subsection (4) shall be given within the prescribed period after the end of the period to which the statement relates.
(6) If the creditor under an agreement fails to comply with subsection (1)—
(a) he is not entitled, while the default continues, to enforce the agreement;F29. . .
(7) This section does not apply to a non-commercial agreement, and subsections [ F30 (4) to (5) ] do not apply to a small agreement.
(1) Where the rate of interest charged under a regulated consumer credit agreement, other than an excluded agreement, is to be varied, the creditor must inform the debtor in writing of the matters mentioned in subsection (3) before the variation can take effect.
(2) But subsection (1) does not apply where—
(a) the agreement provides that the creditor is to inform the debtor in writing periodically of the matters mentioned in subsection (3) in relation to any variation, at such times as may be provided for in the agreement,
(b) the agreement provides that the rate of interest is to vary according to a reference rate,
(c) the reference rate is publicly available,
(d) information about the reference rate is available on the premises of the creditor, and
(e) the variation of the rate of interest results from a change to the reference rate.
(3) The matters referred to in subsections (1) and (2)(a) are—
(a) the variation in the rate of interest,
(b) the amount of any payments that are to be made after the variation has effect, if different, expressed as a sum of money where practicable, and
(c) if the number or frequency of payments changes as a result of the variation, the new number or frequency.
(4) In the case of an agreement mentioned in subsection (5) this section applies as follows—
(a) the obligation in subsection (1) only applies if the rate of interest increases, and
(b) subsection (3) is to be read as if paragraphs (b) and (c) were omitted.
(5) The agreements referred to in subsection (4) are—
(a) an authorised business overdraft agreement,
(b) an authorised non-business overdraft agreement, or
(c) an agreement which would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months.
(6) For the purposes of this section an agreement is an excluded agreement if it is—
(a) a debtor-creditor agreement arising where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit, or
(b) an agreement secured on land. ]
Modifications etc. (not altering text)
(1) The owner under a regulated consumer hire agreement, within the prescribed period after receiving a request in writing to that effect from the hirer and payment of a fee of [ F32 £1 ] , shall give to the hirer a copy of the executed agreement and of any other document referred to in it, together with a statement signed by or on behalf of the owner showing, according to the information to which it is practicable for him to refer, the total sum which has become payable under the agreement by the hirer but remains unpaid and the various amounts comprised in that total sum, with the date when each became due.
(2) Subsection (1) does not apply to—
(a) an agreement under which no sum is, or will or may become, payable by the hirer, or
(b) a request made less than one month after a previous request under that subsection relating to the same agreement was complied with.
(3) If the owner under an agreement fails to comply with subsection (1)—
(a) he is not entitled, while the default continues, to enforce the agreement;F33. . .
(4) This section does not apply to a non-commercial agreement.
(1) Where a regulated agreement, other than a non-commercial agreement, requires the debtor or hirer to keep goods to which the agreement relates in his possession or control, he shall, within seven working days after he has received a request in writing to that effect from the creditor or owner, tell the creditor or owner where the goods are.
(2) If the debtor or hirer fails to comply with subsection (1), and the default continues for 14 days, he commits an offence.
Modifications etc. (not altering text)
(1) Where, under a power contained in a regulated agreement, the creditor or owner varies the agreement, the variation shall not take effect before notice of it is given to the debtor or hirer in the prescribed manner.
[ F35 (1A) Subsection (1) does not apply to a variation in the rate of interest charged under an agreement not secured on land (see section 78A).
(1B) Subsection (1) does not apply to a variation in the rate of interest charged under an agreement secured on land if—
(a) the agreement falls within subsection (1D), and
(b) the variation is a reduction in the rate.
(1C) Subsection (1) does not apply to a variation in any other charge under an agreement if—
(a) the agreement falls within subsection (1D), and
(b) the variation is a reduction in the charge.
(1D) The agreements referred to in subsections (1B) and (1C) are—
(a) an authorised business overdraft agreement,
(b) an authorised non-business overdraft agreement, or
(c) an agreement which would be an authorised non-business overdraft agreement but for the fact that the credit is not repayable on demand or within three months.
(1E) Subsection (1) does not apply to a debtor-creditor agreement arising where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit. ]
(2) Where an agreement (a “modifying agreement ”) varies or supplements an earlier agreement, the modifying agreement shall for the purposes of this Act be treated as—
(a) revoking the earlier agreement, and
(b) containing provisions reproducing the combined effect of the two agreements,
and obligations outstanding in relation to the earlier agreement shall accordingly be treated as outstanding instead in relation to the modifying agreement.
[ F36 (2A) Subsection (2) does not apply if [ F37 the earlier agreement or ] the modifying agreement is an exempt agreement F38 . . ]
[ F39 (2B) Subsection (2) does not apply if the modifying agreement varies—
(a) the amount of the repayment to be made under the earlier agreement, or
(b) the duration of the agreement,
as a result of the discharge of part of the debtor's indebtedness under the earlier agreement by virtue of section 94(3). ]
(3) If the earlier agreement is a regulated agreement but (apart from this subsection) the modifying agreement is not then, [ F40 unless the modifying agreement is—
(a) for running account credit; or
(b) an exempt agreement F41 . ,
it shall be treated as a regulated agreement. ] .
(4) If the earlier agreement is a regulated agreement for running-account credit, and by the modifying agreement the creditor allows the credit limit to be exceeded but intends the excess to be merely temporary, Part V (except section 56) shall not apply to the modifying agreement.
(a) the earlier agreement is a cancellable agreement, and
(b) the modifying agreement is made within the period applicable under section 68 to the earlier agreement,
then, whether or not the modifying agreement would, apart from this subsection, be a cancellable agreement, it shall be treated as a cancellable agreement in respect of which a notice may be served under section 68 not later than the end of the period applicable under that section to the earlier agreement.
[ F42 (5A) Subsection (5) does not apply where the modifying agreement is an exempt agreement F43 . . ]
(6) Except under subsection (5), a modifying agreement shall not be treated as a cancellable agreement.
(a) the earlier agreement is an agreement to which section 66A (right of withdrawal) applies, and
(b) the modifying agreement is made within the period during which the debtor may give notice of withdrawal from the earlier agreement (see section 66A(2)),
then, whether or not the modifying agreement would, apart from this subsection, be an agreement to which section 66A applies, it shall be treated as such an agreement in respect of which notice may be given under subsection (2) of that section within the period referred to in paragraph (b) above.
(6B) Except as provided for under subsection (6A) section 66A does not apply to a modifying agreement. ]
(7) This section does not apply to a non-commercial agreement.
[ F45 (8) In this section, an “exempt agreement” means an agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order by virtue of article 60C(2) (regulated mortgage contracts and regulated home purchase plans) or article 60D (exemption relating to the purchase of land for non-residential purposes) of that Order. ]
Modifications etc. (not altering text)
(1) The debtor under a regulated consumer credit agreement shall not be liable to the creditor for any loss arising from use of the credit facility by another person not acting, or to be treated as acting, as the debtor’s agent.
(2) This section does not apply to a non-commercial agreement, or to any loss in so far as it arises from misuse of an instrument to which section 4 of the M1Cheques Act 1957 applies.
Modifications etc. (not altering text)
(1) Section 83 does not prevent the debtor under a credit-token agreement from being made liable to the extent of [ F47 £35 ] (or the credit limit if lower) for loss to the creditor arising from use of the credit-token by other persons during a period beginning when the credit-token ceases to be in the possession of any authorised person and ending when the credit-token is once more in the possession of an authorised person.
(2) Section 83 does not prevent the debtor under a credit-token agreement from being made liable to any extent for loss to the creditor from use of the credit-token by a person who acquired possession of it with the debtor’s consent.
(3) Subsections (1) and (2) shall not apply to any use of the credit-token after the creditor has been given oral or written notice that it is lost or stolen, or is for any other reason liable to misuse.
[ F48 (3A) Subsections (1) and (2) shall not apply to any use, in connection with a distance contract (other than an excepted contract), of a card which is a credit-token.
F48 (3B) In subsection (3A), “distance contract ” and “excepted contract ” have the meanings given in the Consumer Protection (Distance Selling) Regulations 2000.
[ F49 (3C) Subsections (1) and (2) shall not apply to any use, in connection with a distance contract within the meaning of the Financial Services (Distance Marketing) Regulations 2004, of a card which is a credit-token. ] ]
(4) Subsections (1) and (2) shall not apply unless there are contained in the credit-token agreement in the prescribed manner particulars of the name, address and telephone number of a person stated to be the person to whom notice is to be given under subsection (3).
(5) Notice under subsection (3) takes effect when received, but where it is given orally, and the agreement so requires, it shall be treated as not taking effect if not confirmed in writing within seven days.
(6) Any sum paid by the debtor for the issue of the credit-token, to the extent (if any) that it has not been previously offset by use made of the credit-token, shall be treated as paid towards satisfaction of any liability under subsection (1) or (2).
(7) The debtor, the creditor, and any person authorised by the debtor to use the credit-token, shall be authorised persons for the purposes of subsection (1).
(8) Where two or more credit-tokens are given under one credit-token agreement, the preceding provisions of this section apply to each credit-token separately.