Regulation 3 Amendments to the Consumer Credit (Content of Quotations) and Consumer Credit (Advertisements) (Amendment) Regulations 1999

by substituting the following for the definition of “secured” in regulation 2(1)—

• ““secured” means (except in regulations 3A, 3B and 6(2A) and (2B) below) secured by a mortgage or charge;”;

by substituting the following for regulation 2(2)—

“(2)

In this Part as it applies to Scotland—

(a)

any reference to bailment is a reference to hiring; and

(b)

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

by substituting the words “this Part” for the words “these Regulations” in regulation 2(3);

by inserting the words “subject to regulation 3A below,” at the beginning of paragraph (b) of regulation 3 and by adding the following after that regulation—

“3A

In the case of a quotation provided in connection with a prospective personal credit agreement which would or might be secured by a mortgage on the prospective customer’s home and which, so secured, would be an agreement to which regulation 3B below applies, regulation 3 above shall have effect with the following substituted for the statement set out in paragraph (b)—

• “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.”.

3B

This regulation applies to—

(a)

any personal 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 personal 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.”; and

by inserting the words “subject to paragraph (2A) below,” at the beginning of paragraph (2)(b) of regulation 6 and by adding the following after that paragraph—

“(2A)

In the case of a quotation provided in connection with a prospective personal credit agreement which would or might be secured by a mortgage on the prospective customer’s home and which, so secured, would be an agreement to which paragraph (2B) below applies, paragraph (2) above shall have effect with the following substituted for the statement set out in sub-paragraph (b)—

“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.”.

(2B)

This paragraph applies to—

(a)

any personal 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 personal 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.”.