Regulation 2 Amendments to the Consumer Credit (Advertisements) Regulations 1989

by substituting the following for regulation 1(3)—

“(3)

In these Regulations as they apply to Scotland—

(a)

any reference to bailment is a reference to hiring; and

(b)

any reference to a mortgage or charge on land, or any other security on land, is a reference to a standard security over land within the meaning of the Conveyancing and Feudal Reform (Scotland) Act 1970^f2.”;

in Part II of Schedule 1, by substituting the following for paragraphs 2 and 2A—

“2

(1)

A statement that any security is or may be required.

(2)

Where the security comprises or may comprise a mortgage or charge on the debtor’s home (but not where sub-paragraph (3) below applies or in the case of an exempt advertisement referred to in sub-paragraph (5) below), a statement in the following form—

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”.

(3)

Where the security comprises or may comprise a mortgage on the debtor’s home and the credit agreement is or would be one to which sub-paragraph (4) below applies (but not in the case of an exempt advertisement referred to in sub-paragraph (5) below), a statement in the following form—

“CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE.”.

(4)

This sub-paragraph applies to—

(a)

any credit agreement under which no instalment repayments of the credit secured by the mortgage on the debtor’s home, and no payment of interest on the credit (other than interest charged when all or part of the credit is repaid voluntarily by the debtor), are due or capable of becoming due while the debtor continues to occupy the mortgaged land as his main residence; and

(b)

any credit agreement—

(i)

which is secured by a mortgage which the creditor cannot enforce by taking possession of or selling (or concurring with any other person in selling) the mortgaged land or any part of it while the debtor continues to occupy it as his main residence, and

(ii)

under which, although interest payments may become due, no full or partial repayment of the credit secured by the mortgage is due or capable of becoming due while the debtor continues to occupy the mortgaged land as his main residence.

(5)

An exempt advertisement for the purposes of sub-paragraphs (2) and (3) above is an advertisement which is—

(a)

published by means of television or radio broadcast in the course of programming whose primary purpose is not advertising; or

(b)

published by exhibition of a film (other than exhibition by television broadcast).”; and

in Part III of Schedule 1, by substituting the following for paragraphs 2 and 2A—

“2

(1)

A statement that any security is or may be required.

(2)

Where the security comprises or may comprise a mortgage or charge on the debtor’s home (but not where sub-paragraph (3) below applies or in the case of an exempt advertisement referred to in sub-paragraph (5) below), a statement in the following form—

“YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”.

(3)

Where the security comprises or may comprise a mortgage on the debtor’s home and the credit agreement is or would be one to which sub-paragraph (4) below applies (but not in the case of an exempt advertisement referred to in sub-paragraph (5) below), a statement in the following form—

“CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE.”.

(4)

This sub-paragraph applies to—

(a)

any credit agreement under which no instalment repayments of the credit secured by the mortgage on the debtor’s home, and no payment of interest on the credit (other than interest charged when all or part of the credit is repaid voluntarily by the debtor), are due or capable of becoming due while the debtor continues to occupy the mortgaged land as his main residence; and

(b)

any credit agreement—

(i)

which is secured by a mortgage which the creditor cannot enforce by taking possession of or selling (or concurring with any other person in selling) the mortgaged land or any part of it while the debtor continues to occupy it as his main residence, and

(ii)

under which, although interest payments may become due, no full or partial repayment of the credit secured by the mortgage is due or capable of becoming due while the debtor continues to occupy the mortgaged land as his main residence.

(5)

An exempt advertisement for the purposes of sub-paragraphs (2) and (3) above is an advertisement which is—

(a)

published by means of television or radio broadcast in the course of programming whose primary purpose is not advertising; or

(b)

published by exhibition of a film (other than exhibition by television broadcast).”.