Explanatory note

These Regulations, which come into force on 26th September 2014, amend the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 (“the 2007 Regulations”). The 2007 Regulations prescribe information and forms of wording which must be included in certain statements and notices which creditors and owners are required to give to debtors and hirers under the Consumer Credit Act 1974.

These Regulations amend the requirements of the 2007 Regulations for statements given under section 77A of the Consumer Credit Act 1974 in relation to green deal plans. (A green deal plan is an arrangement made by the occupier, or owner, of a property for a person to make energy efficiency improvements to the property, which are to be paid for wholly, or partly, in instalments. The instalments are paid by the person who is for the time being liable to pay the energy bills for the property, and are made to the relevant energy supplier through the energy bills for the property).

These Regulations amend regulation 4 of the 2007 Regulations to modify the information that must be included in a statement which relates to a green deal plan made before 28th February 2014.

They insert new regulations (regulations 10A and 10B) which apply to statements relating to green deal plans, where there has been a change of bill payer or a change of energy supplier during the period to which the statement relates. The regulations provide that the statements must be based on the assumption that any liability which fell due for payment before the date of the change was paid on time.

They insert a new regulation (regulation 10C) which applies to statements relating to green deal plans, where the person who is liable to pay the instalments under the green deal plan is supplied with electricity through a prepayment meter. The regulation provides that, where incomplete information is available to the creditor, the statements may be based on the assumption that the person who is liable to pay the instalments paid the amount accruing under the agreement during the period to which the statement relates.

They insert a new regulation (regulation 41A) which applies to statements relating to green deal plans which contain an error or omission. The regulation provides that the statement will not breach the 2007 Regulations on that ground where the error or omission has arisen as a result of the relevant energy supplier failing to provide information to the creditor, or as a result of an error or omission in the information held by the creditor, where the creditor did not know, and could not reasonably have been expected to know, of the error or omission. Where a statement is provided containing an error or omission, regulation 41A requires a subsequent statement to include the correct information, and a corrected opening balance where appropriate.

An impact assessment has not been prepared for this instrument as no significant impact on the private, voluntary or public sectors is foreseen.