Consumer Credit The Secretary of State makes— a regulation 7 in exercise of the powers conferred by sections 20 and 182(2) of the Consumer Credit Act 1974 , and b all other regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972. Citation and Commencement 1 These Regulations may be cited as the Consumer Credit (Amendment) Regulations 2011 and shall come into force on 31st January 2011. Amendments to the Consumer Credit (EU Directive) Regulations 2010 2 The Consumer Credit (EU Directive) Regulations 2010 are amended as specified in regulations 3 to 6. 3 In regulation 32 (early repayment), in the wording inserted as section 95A (compensatory amount), in subsection (3)(c) for “whichever is the higher” substitute “whichever is the lower”. 4 For regulation 55 (Consumer Credit (Agreements) Regulations 1983) substitute— 55 In Schedule 2 (forms of statement or protection and remedies available under the Consumer Credit Act 1974 to debtors under regulated consumer credit agreements)— a in form 14, in column 3 under Form of Statements for the text in 1) to the end substitute— 1) You can settle this agreement at any time by giving notice [in writing]* and paying off the amount you owe under the agreement [which may be reduced by a rebate]** [Examples indicating the amount you have to pay appear in the agreement.]*** [2) You can settle this agreement in part at any time by giving notice and paying off some of the amount you owe.]**** [3) If you received unsatisfactory goods or services paid for under this agreement [, apart from any bought with a cash loan,]***** you may have a right to sue the supplier, the creditor or both. 4) If the contract is not fulfilled, perhaps because the supplier has gone out of business, you may still be able to sue the creditor.]****** If you would like to know more about your rights under the Act, contact either your local Trading Standards Department or your nearest Citizens’ Advice Bureau. Notes: *Creditor to insert phrase in square brackets where agreement is secured on land. **Creditor to insert phrase in square brackets in any agreement where rebate would be payable on early settlement under the agreement or the Consumer Credit (Early Settlement) Regulations 2004. *** Creditor to insert phrase in second pair of square brackets in any agreement for fixed-sum credit for a term of more than one month that is an agreement secured on land. **** Creditor to delete where agreement is secured on land. ***** Creditor to insert phrase in square brackets in any multiple agreement, of which at least one part is a debtor-creditor-supplier agreement falling within section 12(b) or (c) of the Act and at least one part is a debtor-creditor agreement falling within section 13(c) of the Act. ******Creditor may delete text in 3) and 4) where agreement is 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 credit provided in such period shall not exceed one. ; b in form 15, in column 3 under Form of Statement for the text from “You can settle the regulated agreement” to the end substitute— You can settle the regulated agreement at any time by giving notice [in writing]** and paying off the amount you owe under this agreement [which may be reduced by a rebate]*** [Examples indicating the amount you have to pay appear in the agreement.]**** [You can settle this agreement in part at any time by giving notice and paying off some of the amount you owe.]***** If you would like to know more about your rights under the Act, contact either your local Trading Standards Department or your nearest Citizens’ Advice Bureau. Notes: *Creditor to insert description of regulated agreement example “the cash advance facility”. ** Creditor to insert phrase in square brackets where agreement is secured on land. ***Creditor to insert phrase in square brackets in any agreement where rebate would be payable on early settlement under the agreement or the Consumer Credit (Early Settlement) Regulations 2004. **** Creditor to insert phrase in second pair of square brackets in any agreement for fixed-sum credit for a term of more than one month that is an agreement secured on land. ***** Creditor to delete where agreement is secured on land. ; c in Form 16, in column 3 under Form of Statement for the text from “You can settle this agreement” to the end substitute— You can settle this agreement at any time by giving notice [in writing]* and paying off the amount you owe under the agreement [which may be reduced by a rebate]**. [Examples indicating the amount you have to pay appear in the agreement.]*** [You can settle this agreement in part at any time by giving notice and paying off some of the amount you owe.]**** If you would like to know more about your rights under the Act, contact either your local Trading Standards Department or your nearest Citizens’ Advice Bureau. Notes: *Creditor to insert phrase in square brackets where agreement is secured on land. ** Creditor to insert phrase in square brackets in any agreement where rebate would be payable on early settlement under the agreement or the Consumer Credit (Early Settlement) Regulations 2004. *** Creditor to insert phrase in second pair of square brackets in any agreement for fixed-sum credit for a term of more than one month that is an agreement secured on land. **** Creditor to delete where agreement is secured on land. . . 5 In regulation 78 (Consumer Credit (Early Settlement) Regulations 2004), omit paragraph (c). 6 After regulation 88 (Financial Services (Distance Marketing) Regulations 2004), insert— 88A In regulation 10 (cancellation period), after paragraph (3), insert— 3A Where the distance contract is also an authorised non-business overdraft agreement the cancellation period ends on the expiry of fourteen calendar days beginning with the day after the relevant day. 3B For the purposes of paragraph (3A) the relevant day is whichever is the latest of the following— a the conclusion day; b where the supplier is required to inform the consumer of the credit limit under the distance contract the day on which the supplier first does so; c in the case of an agreement to which regulation 8(1C)(a) is relevant the day on which the consumer receives the information and the contractual terms and conditions referred to in that regulation; d in the case of an agreement to which regulation 8(1C)(b) or (c) is relevant the day on which the consumer receives the information and the written agreement or, as applicable, the written agreement referred to in that regulation. . . Amendments to the Consumer Credit (Total Charge for Credit) Regulations 2010 7 1 The Consumer Credit (Total Charge for Credit) Regulations 2010 are amended as follows. 2 In regulation 2 (interpretation), in paragraph (2)(b) for “the Act” substitute “the Consumer Credit Act 1974”. Amendments to the Consumer Credit (Disclosure of Information) Regulations 2010 8 1 The Consumer Credit (Disclosure of Information) Regulations 2010 are amended as follows. 2 In regulation 10 (information to be disclosed: overdraft agreements), in paragraph (5A) for “regulation” substitute “agreement”. Transitional provision 9 1 This regulation applies to a consumer credit agreement regulated by the Consumer Credit Act 1974— a that is entered into on or after 1st February 2011 and before 2nd August 2011, b that is not secured on land, and c to which the Agreements Regulations 1983 apply. 2 An agreement is to be treated as though the Agreements Regulations 1983 have been complied with where the creditor does what is required by those Regulations except that in the wording of the relevant Form the words “in writing” are inserted before the words “and paying off the amount you owe”. 10 1 This regulation applies to a consumer credit agreement regulated by the Consumer Credit Act 1974— a that is entered into on 31st January 2011, b that is not secured on land, and c to which regulation 101A of the Consumer Credit (EU Directive) Regulations 2010 applies. 2 In regulation 101A(3) of the Consumer Credit (EU Directive) Regulations 2010, Condition F is satisfied where the creditor does what is required by that regulation except that in the relevant statement of protection and remedies provided in accordance with regulation 101A(3)(a) the words “in writing” are inserted before the words “and paying off the amount you owe”. 3 In paragraph (2) the “relevant statement of protection and remedies” means the statement of protection and remedies in the relevant Form. 4 An agreement is to be treated as though the Agreements Regulations 1983 have been complied with where the creditor does what is required by those Regulations except that in the wording of the relevant Form the words “in writing” are inserted before the words “and paying off the amount you owe” 11 In regulations 9 and 10— a “the Agreements Regulations 1983” means the Consumer Credit (Agreements) Regulations 1983 ; b “the relevant Form” means Form 14, 15 or 16, as applicable, of Schedule 2 to the Consumer Credit (Agreements) Regulations 1983 . Mark Prisk Minister of State for Business and Enterprise Department for Business, Innovation and Skills 5th January 2011