The Consumer Credit Act 1974 (Green Deal) (Amendment) Order 2014

In this Order “the Act” means the Consumer Credit Act 1974^f1.

In section 8 of the Act^f1, after subsection (3) insert—

“(4)

Subsection (1) does not apply in relation to an agreement that is a green deal plan (see instead section 189B).”

In section 16B(1A)(c) of the Act^f1—

In section 189(1) of the Act—

After section 189A of the Act insert—

“Green deal plans

189B

(1)

A green deal plan is to be treated as a consumer credit agreement for the purposes of this Act if (and only if)—

(a)

the property in relation to the plan is a domestic property at the time when the plan is commenced, or

(b)

if paragraph (a) does not apply, the occupier or owner of the property who makes the arrangement for the plan is an individual.

(2)

In the application of this Act to a green deal consumer credit agreement—

(a)

the creditor is to be treated as being—

(i)

the green deal provider (within the meaning of Chapter 1 of Part 1 of the Energy Act 2011) for the plan, or

(ii)

the person to whom the provider’s rights and duties under the plan have passed by assignment or operation of law,

(b)

credit is to be treated as advanced under the agreement of an amount equal to the amount of the improvement costs, and

(c)

the advance of credit is to be treated as made on the completion of the installation of the energy efficiency improvements to the property (but this paragraph is subject to any term of the green deal plan providing that part of the advance is to be treated as made on completion of any part of the installation).

(3)

A reference in a provision of this Act listed in the first column of the table in Schedule 2A to the debtor is, in the application of the provision in relation to a green deal consumer credit agreement, to be read as a reference to—

(a)

a person who at the relevant time falls (or fell) within the description or descriptions specified in the corresponding entry in the second column of the table, or

(b)

if more than one description is specified and at the relevant time different persons fall (or fell) within the descriptions, each of those persons,

and except as provided by this subsection, a person is not and is not to be treated as the debtor in relation to the agreement.

(4)

Where by virtue of subsection (3) a reference to the debtor in a listed provision is to be read as a reference to the improver, it is to be assumed in applying the provision in relation to the green deal consumer credit agreement that the improver is provided with credit on the terms of the green deal plan.

(5)

Where by virtue of subsection (3) a reference to the debtor in a listed provision is to be read as a reference to a person who is not the improver, it is to be assumed in applying the provision in relation to the green deal consumer credit agreement—

(a)

if the provision in question is any of sections 94 to 97A^f1 (which together make provision about early payment by the debtor), that the person is provided with credit on terms that the person is liable to pay all the instalments under the green deal plan;

(b)

in any other case, that the person is provided with credit on those terms of the green deal plan that bind or benefit the person for any period by virtue of regulations under section 6(2)(b) of the Energy Act 2011.

(6)

References in this section and in Schedule 2A to the “improver”, “first bill payer”, “current bill payer” and “previous bill payer” are to be read as follows—

(a)

a person is the “improver” if the person—

(i)

is the owner or occupier of the property, and

(ii)

is the person who makes (or has made or proposes to make) the arrangement for the green deal plan,

but this is subject to section 189C(4) in cases where the person is not an individual;

(b)

a person is the “first bill payer” if the person is liable to pay the energy bills for the property at the time when the green deal plan is commenced;

(c)

a person is the “current bill payer” if the person is liable by virtue of section 1(6)(a) of the Energy Act 2011 to pay instalments under the plan as a result of being for the time being liable to pay the energy bills for the property;

(d)

a person is a “previous bill payer” if, as a result of previously falling within paragraph (c) for an earlier period, the person has an outstanding payment liability under the plan in respect of that period.

(7)

References in this Act to a prospective consumer credit agreement, and references to the creditor and debtor in relation to such an agreement, are to be read in accordance with this section in the case of prospective green deal consumer credit agreements.

(8)

In this section and in section 189C—

• “domestic property” means a building or part of a building that is occupied as a dwelling or (if not occupied) is intended to be occupied as a dwelling;

• “energy bill” has the same meaning as in section 1 of the Energy Act 2011;

• “energy efficiency improvements” has the meaning given by section 2(4) of the Energy Act 2011;

• “green deal consumer credit agreement” means a green deal plan that is to be treated as a consumer credit agreement for the purposes of this Act by virtue of subsection (1);

• “improvement costs”, in relation to a green deal plan, are the costs of the energy efficiency improvements to the property which are to be paid by instalments under the plan after the time when credit is to be treated as being advanced by virtue of subsection (2) (but ignoring any interest or other charges for credit in determining those costs);

• “listed provision” means a provision of this Act listed in the first column of Schedule 2A;

• “occupier” and “owner” have the same meanings as in Chapter 1 of Part 1 of the Energy Act 2011;

• “property”, in relation to a green deal plan, means the property to which the energy efficiency improvements under the plan are or are intended to be made.

Section 189B: supplementary provision

189C

(1)

A green deal consumer credit agreement is to be treated—

(a)

as an agreement for fixed-sum credit within the meaning of section 10(1)(b)^f2;

(b)

as a credit agreement for the purposes of sections 140A and 140B (and section 140C(1) is to be read accordingly)^f3.

(2)

Where a green deal consumer credit agreement is a regulated agreement within the meaning of this Act (see section 8(3)), it is to be treated as a restricted-use agreement that falls within section 11(1)(a).

(3)

Sections 81^f4, 140C(2) and 176(5) do not apply in the case of a green deal consumer credit agreement.

(4)

A person who is not an individual is to be treated as the improver in relation to any listed provision in the first column of the table in Schedule 2A only if the corresponding entry in the second column of the table so specifies.

(5)

For the purposes of section 189B—

(a)

a green deal plan is commenced when—

(i)

the occupier or owner of the property signs in the prescribed manner a document in relation to the plan in accordance with section 61(1) (requirements as to form and content of regulated agreements)^f5, or

(ii)

if the occupier or owner of the property does not sign such a document, the green deal plan is made;

(b)

a person is liable to pay the energy bills for a property at any time if the person would be treated as the bill payer for the property at that time for the purposes of Chapter 1 of Part 1 of the Energy Act 2011 (see section 2(3) and (10)).

Section 189B: temporary provision

189D

(1)

For the period beginning on the date when this section comes into force and ending on 31st March 2014, the table in Schedule 2A is to be read as if it included the following entries—

Section of this Act	References to “debtor” are to be read as references to the…
Sections 16, 16A, 16B, 16Cf6	- improver
Section 20f7	- improver - first bill payer
Section 40f8	- improver (including an improver who is not an individual) - current bill payer - previous bill payer
Section 55Af9	- improver - first bill payer, except for the purposes of subsection (1)(b)
Section 55Bf10	- improver - first bill payer
Section 82Af11	- improver - current bill payer - previous bill payer
Section 145f12	- current bill payer - previous bill payer
Section 149f13	- improver (including an improver who is not an individual) - current bill payer - previous bill payer
Section 160Af14	- improver

(2)

This section ceases to have effect on 1st April 2014.”

After Schedule 2 to the Act (examples of use of new terminology) insert the following Schedule—

“SCHEDULE 2A

MEANING OF “DEBTOR” IN RELATION TO GREEN DEAL AGREEMENTS

Section of this Act	References to “debtor” are to be read as references to the…
Section 19	- improver
Section 55f1	- improver
Section 55Cf2	- improver - first bill payer
Section 56	- improver - first bill payer
Section 57	- improver
Section 59	- improver
Sections 60 and 61f3	- improver (including an improver who is not an individual)
Section 61Af4	- improver
Sections 62, 63, 64f5	- improver
Section 65	- improver - current bill payer - previous bill payer
Section 66Af6	- improver
Sections 67, 68, 69, 70, 71, 72, 73f7	- improver
Section 75Af8	- improver
Sections 76 and 77f9	- current bill payer - previous bill payer
Section 77Af10	- current bill payer
Section 77Bf11	- improver - current bill payer
Section 78Af12	- improver - current bill payer
Section 80	- improver
Section 82f13	- improver - current bill payer - previous bill payer
Section 86	- current bill payer - previous bill payer
Section 86Ef14	- current bill payer - previous bill payer
Section 86Ff15	- current bill payer - previous bill payer
Section 87f16	- current bill payer - previous bill payer
Section 89	- current bill payer - previous bill payer
Section 93f17	- current bill payer - previous bill payer
Sections 94, 95, 95A, 95B, 96, 97, 97Af18	- improver - current bill payer
Section 98	- current bill payer - previous bill payer
Sections 102, 103, 105, 107, 110, 113f19	- improver
Sections 123f20, 124	- current bill payer - previous bill payer
Section 127f21	- improver - current bill payer - previous bill payer
Sections 128, 129, 130, 130Af22	- current bill payer - previous bill payer
Sections 140A, 140B, 140Cf23	- improver - current bill payer - previous bill payer
Section 141(1), (2), (3A), (3B)	- improver - current bill payer - previous bill payer
Section 157f24	- improver - first bill payer
Section 173f25	- improver - current bill payer - previous bill payer
Section 179	- improver - first bill payer - current bill payer - previous bill payer
Section 185(1), (2), (2A), (2B), (2C), (2D), (4)f26	- current bill payer
Section 187Af27	- current bill payer - previous bill payer
Section 189(1), so far as relating to definition of “security”	- improver

”

(This note is not part of the Order)