Explanatory note

Section 123 of the Consumer Credit Act 1974 places restrictions on the taking and negotiating of negotiable instruments by creditors and owners in relation to agreements regulated by the Act.

This Order excludes from the application of the section consumer hire agreements which have a connection with a country outside the United Kingdom, but only if the goods are hired in the course of the hirer's business.

The section does not apply to non-commercial agreements as defined in the Act. Consumer credit agreements which have a connection with a country outside the United Kingdom and under which credit is provided to a debtor in the course of his business are exempt agreements by virtue of Article 5 of the Consumer Credit (Exempt Agreements) Order 1980 (S.I. 1980/52) with the result that the section does not apply to such agreements.