Stakeholder Notice: June 2008
1. This Notice provides an update on implementation of the Consumer Credit Act 2006 (CCA06). It relates specifically to the draft Legislative Reform (Consumer Credit) Order 2008, the Consumer Credit (Information Requirements and Duration of Licences and Charges) (Amendment) Regulations 2008, and OFT guidance on enforcement on unfair relationships under Part 8 of the Enterprise Act 2002.
Legislative Reform (Consumer Credit) Order 2008
2. The draft Legislative Reform Order (LRO) was laid in Parliament on 11 June. The Minister has recommended that the affirmative resolution procedure should apply to the draft LRO under which Parliament has 40 days to consider the proposals. They can, however, within the first 30 days recommend a more onerous procedure – in this case the super-affirmative procedure which gives them an additional 20 days consideration. In view of the parliamentary scrutiny process and the pressure on parliamentary time as we approach Summer Recess, we cannot yet say whether the LRO will receive parliamentary approval before Recess. We will issue a further Stakeholder Notice when the position is clearer.
3. The draft LRO and the accompanying Explanatory Document (which includes as annexes the final Impact assessment and the BERR response to the consultation) that were laid in Parliament are available on the Key Documents page.
Consumer Credit (Information Requirements and Duration of Licences and Charges) (Amendment) Regulations 2008
4. Following the update provided in the March Stakeholder Notice, we intend, subject to Ministerial and Parliamentary approval, to make amendment regulations to the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 in order to correct some drafting errors and ensure that the regulations fully reflect our original policy intentions. We intend to make the amendment regulations by July so that they can amend the relevant provisions in the 2007 Regulations by October (when the 2007 Regulations come into force). We will email stakeholders a copy of the amendment regulations when they are laid in Parliament. They will also be available on the Office of Public Sector Information (OPSI) website: www.opsi.gov.uk/si/si-2008-index
Unfair relationships - Enforcement action under Part 8 of the Enterprise Act 2002
5. OFT recently reviewed their guidance on 'Unfair Relationships: Enforcement action under Part 8 of the Enterprise Act 2002' which was previously published in December 2006. This has been reviewed in light of the new consumer credit licensing fitness requirements and the Consumer Protection Regulations 2008 (which implement the Unfair Commercial Practices Directive). The revised guidance was published on 15 May and is available on the OFT’s website: www.oft.gov.uk/advice_and_resources/publications/guidance/consumer_credit_act/oft854.
Further information on the Consumer Credit Act 2006
6. Either visit the BERR website or email CCA.06@berr.gsi.gov.uk