Financial Services Bill — New Clause 14 — Store cards and consumer credit agreements — 25 Jan 2010 at 21:00

'(1) The Consumer Credit Act 1974 shall be amended as follows.

(2) After section 60, insert-

"60A Form and content of retail credit-token agreements

(1) The Secretary of State may make regulations as to the form and content of documents embodying retail credit-token agreements, and the regulations shall contain such provisions as appear to him appropriate including requirements to ensure that-

(a) the rate of interest on the credit to be provided under the agreement for credit (or all the rates on a per annum basis where there is more than one rate of interest) does not prejudice the interests of debtors; or

(b) the agreement for credit includes a seven day cooling off period during which credit would not be available to the debtor.

(2) 'Retail credit-token' means a credit-token (which has the meaning given by section 14(1)) which results in the provision of credit under a credit-token agreement provided by a retailer or group of retailers which can only be used for purchases from the retailers concerned.

(3) A 'retailer' means a person or business providing goods and services to an individual.

(4) Accordingly, a 'retail credit-token agreement' is a regulated agreement.".

(3) For section 67, substitute-

"67 Cancellable Agreements

(1) A regulated agreement that is not a retail credit-token agreement may be cancelled by the debtor or hirer in accordance with this Part if the antecedent negotiations included oral representations made when in the presence of the debtor or hirer by an individual acting as, or on behalf of the negotiator, unless-

(a) the agreement is secured on land, or is a restricted-use credit agreement to finance the purchase of land or is an agreement for a bridging loan in connection with the purchase of land, or

(b) the unexecuted agreement is signed by the debtor or hirer at premises at which any of the following is carrying on any business (whether on a permanent or temporary basis)-

(i) the creditor or owner;

(ii) any party to a linked transaction (other than the debtor or hirer or a relative of his);

(iii) the negotiator in any in any antecedent negotiations.

(2) A retail credit-token agreement may be cancelled by the debtor in accordance with this Part.".

(4) For section 68, substitute-

"68 Cooling-off period

The debtor or hirer may serve notice of cancellation of a cancellable agreement between his signing of the unexecuted agreement and-

(a) the end of the fifth day following the day on which he received a copy under section 63(2) or a notice under section 64(1)(b), or

(b) if (by virtue of regulations made under section 64(4)) section 64(1)(b) does not apply, the end of the fourteenth day following the day on which he signed the unexecuted agreement, or

(c) if the cancellable agreement is a retail credit-token agreement, the end of the seventh day following the day on which he signed the unexecuted agreement.".'.- (Mr. Hoban.)

Brought up.

Question put, That the clause be added to the Bill:-

The House divided: Ayes 167, Noes 253.

Debate in Parliament | Source |