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The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2005

S.I. 2005/2967 · Made 24 October 2005 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 16 November 2005.

FINANCIAL SERVICES AND MARKETS

Made 24th October 2005

Laid before Parliament 25th October 2005

Coming into force 16th November 2005

The Treasury, in exercise of the powers conferred upon them by sections 426 and 428(3) of the Financial Services and Markets Act 2000f1 make the following Order:

Annotations to the whole text

Footnotes

f1

2000 c. 8

Contents

  1. 1Citation and commencement
  2. 2Variation of consumer credit regulated agreements
  3. 3Exception from ancillary credit business
  4. Signature
  5. Explanatory note

1Citation and commencementI1

This Order may be cited as the Financial Services and Markets Act 2000 (Consequential Amendments) Order 2005 and comes into force on 16th November 2005.

2Variation of consumer credit regulated agreementsI1

(1)

Section 82 of the Consumer Credit Act 1974f1 (variation of agreements) is amended as follows.

(2)

After subsection (2) insert—

“(2A)

Subsection (2) does not apply if the modifying agreement is an exempt agreement as a result of section 16(6C).”.

(3)

In subsection (3) for the words from “unless” to “regulated agreement” substitute—

  • “unless the modifying agreement is—

    1. (a)

      for running account credit; or

    2. (b)

      an exempt agreement as a result of section 16(6C),

    it shall be treated as a regulated agreement.”.

(4)

After subsection (5) insert—

“(5A)

Subsection (5) does not apply where the modifying agreement is an exempt agreement as a result of section 16(6C).”.

3Exception from ancillary credit businessI1

In subsection (5D) of section 146 of the Consumer Credit Act 1974f1 (exceptions from section 145), in the definition of “relevant agreement” for “a consumer credit” substitute “an”.

Signature

Tom Watson

Joan Ryan

Two of the Lords Commissioners of Her Majesty’s Treasury

24th October 2005

Explanatory note

(This note is not part of the Order)

This Order amends two sections of the Consumer Credit Act 1974 (c. 39). The first section that it amends, section 82, deals with variation of agreements. The amendments exclude a certain type of modifying agreement from the provisions of subsections (2), (3) and (5) of section 82. The type of modifying agreement excluded is an agreement which is not regulated under the Act because it is secured by a land mortgage and entering into that agreement as lender is regulated under the Financial Services and Markets Act 2000 (“the 2000 Act”). Mortgage agreements regulated under the 2000 Act are therefore not regulated under the Consumer Credit Act 1974 where they otherwise would be by virtue of modifying an agreement that is regulated under that Act.

It also amends section 146, which sets out certain activities that are excluded from being ancillary credit business, as defined in section 145. By changing the definition of “relevant agreement” in subsection (5D), all credit-brokerage, debt-adjusting and debt-counselling which relates to agreements regulated under the 2000 Act is exempted from being ancillary credit business.