Explanatory note

These Regulations amend the Consumer Credit (Conduct of Business) (Credit References) Regulations 1977 (“the 1977 Regulations”). The 1977 Regulations, as so amended, supplement sections 157 to 160 of the Consumer Credit Act 1974 (“the 1974 Act”), certain provisions of sections 7 and 9 of the Data Protection Act 1998 (“the 1998 Act”) and the Consumer Credit (Credit Reference Agency) Regulations 2000 (S.I. 2000/290), which together deal with the disclosure to consumers of information about their financial standing held by credit reference agencies and the correction of such information where it is found to be wrong or incomplete.

The amendments made to the 1977 Regulations by these Regulations are in part consequential upon the enactment of sections 7 and 9 of the 1998 Act and the amendment (by section 62 of that Act) of sections 158 to 160 of the 1974 Act and in part changes in drafting.

Regulation 2(a) replaces regulation 5(1) of the 1977 Regulations. References to “consumers” are replaced by references to “individuals”(which, by virtue of section 189(1) of the 1974 Act, includes partnerships and other unincorporated bodies of persons not consisting entirely of bodies corporate). This change reflects the fact that “consumer” is now more narrowly defined in section 158(1) of the 1974 Act. The new regulation 5(1) also includes a reference to the Data Protection Commissioner, which takes into account the role of the Commissioner under section 159 of the 1974 Act as amended.

The new regulation 5(1) contains further drafting changes, among which is a reference to “the relevant date”. That expression is defined in a new regulation 5(3), added by regulation 2(b) of these Regulations. The definition reflects the fact that section 7 of the 1998 Act (read with section 9) now contains the right of individuals other than partnerships or other unincorporated bodies to obtain disclosure of information about their financial standing from credit reference agencies.

A Regulatory Impact Assessment of the costs and benefits which will result from these Regulations has been prepared. Copies have been placed in the libraries of both Houses of Parliament and can also be obtained from the Consumer Affairs Directorate of the Department of Trade and Industry, Room 407, 1 Victoria Street, London SW1H 0ET.