Stakeholder Notice: April 2008
1. This Notice provides an update on implementation of the Consumer Credit Act 2006 (CCA06). It relates specifically to the provisions which entered into force on 6 April 2008 and the Fourth Commencement Order.
6 April 2008
2. Further provisions in the CCA06 came into force on 6 April 2008. These are:
- Introduction of OFT’s strengthened licensing regime
For further information see: www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/CCA2006/ - Creation of the Consumer Credit Appeals Tribunal
For further information see:
http://www.consumercreditappeals.tribunals.gov.uk/ - Removal of the financial limit for regulation of consumer credit agreements
For further information, see www.opsi.gov.uk/acts/acts2006/en/ukpgaen_20060014_en.pdf (p7); and on the High Net Worth and business exemptions see: www.opsi.gov.uk/si/si2007/uksi_20071168_en_1 - Extension of the Unfair Relationships Test to all existing agreements
For further information, see www.opsi.gov.uk/acts/acts2006/en/ukpgaen_20060014_en.pdf (p14-16)
3. BERR’s press notice “New rules target rogue lenders and debt collectors” issued on 6 April can be viewed at: http://nds.coi.gov.uk/environment/berr/
Fourth Commencement Order
4. The Fourth and final Commencement Order was published on 28 March. It is available on the Office of Public Sector Information (OPSI) website www.opsi.gov.uk/si/si2008/pdf/uksi_20080831_en.pdf
5. This Order commenced section 2 (removal of the financial limit - £25,000) on 6 April 2008 and associated transitional provisions as follows:
- section 2 commenced for all agreements other than those agreements which satisfy the new criteria for buy-to-let lending. This keeps out of regulation such buy-to-let lending until the Legislative Reform Order to exempt this lending from CCA regulation comes into force on 1 October 2008 (subject to Parliamentary approval); and
- section 2 does not apply to previously unregulated agreements (by virtue of the £25K financial limit) which are varied after 6 April 2008 by a further agreement which either does not involve the provision of further credit (in the form of a cash loan) or is itself an exempt agreement under the Consumer Credit Act 1974.
Further information on the Consumer Credit Act 2006
6. Either visit the BERR website or email CCA.06@berr.gsi.gov.uk