Credit Consumer Act - Worth Reading

These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
1
CONSUMER CREDIT ACT 2006
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EXPLANATORY NOTES
INTRODUCTION
1. These explanatory notes relate to the Consumer Credit Act 2006, which
received Royal Assent on 30 March 2006. They have been prepared by the
Department of Trade and Industry (“DTI”) in order to assist the reader in
understanding the Act. They do not form part of the Act and have not been endorsed
by Parliament.
2. The notes need to be read in conjunction with the Act. They are not, and are
not meant to be, a comprehensive description of the Act. So where a section or part of
a section does not seem to require any explanation or comment, none is given.
3. Because this Act covers several subject areas, each of the main areas is
introduced and described separately in the commentary (although a short explanation
of the background is given in paragraphs 5-7). Paragraph 8 gives a brief overview of
the Act’s structure.
SUMMARY
4. For the purposes of these notes the Consumer Credit Act 2006 will be referred
to as “the 2006 Act”. The 2006 Act principally amends the Consumer Credit Act
1974 (the “1974 Act”), which is the statute governing the licensing of, and other
controls on, traders concerned with the provision of credit or the supply of goods on
hire or hire-purchase to individuals and with the regulation of transactions concerning
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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that provision or that supply. The purpose of the 2006 Act is to reform the 1974 Act
to:
• provide for the regulation of all consumer credit and consumer hire
agreements subject to certain exemptions;
• make provision in relation to the licensing of providers of consumer credit and
consumer hire and ancillary credit services and the functions and powers of
OFT in relation to licensing;
• enable debtors to challenge unfair relationships with creditors; and
• provide for an Ombudsman scheme to hear complaints in relation to
businesses licensed under the 1974 Act, as amended.
SHORT BACKGROUND
5. In July 2001, the Secretary of State for Trade and Industry announced a review
of the 1974 Act. After a process of public consultation with interested parties on the
effectiveness of the existing regulation of information disclosure, early settlement,
unfair credit transactions, consumer credit licensing, the financial limit above which
agreements are not regulated under the 1974 Act and consumer redress, there
followed the publication of the White Paper “Fair, Clear and Competitive – The
Consumer Credit Market in the 21st Century” in December 2003.
6. The review also considered the problem of over-indebtedness in the United
Kingdom, and the ways in which government, working with industry and consumer
representatives and advisers, can tackle this issue. This led to the publication of the
joint DTI and Department for Work and Pensions paper “Tackling Over-indebtedness
– Action Plan 2004”.
7. The Government’s responses to these consultations may be found at
www.dti.gov.uk/ccp/topics1/consumer_finance.htm#review. In respect of the issues
of pre-contractual disclosure, advertising and early settlement, the Parliamentary
Under-Secretary of State for Employment Relations, Competition and Consumers
made the Consumer Credit (Advertisements) Regulations 2004, the Consumer Credit
(Agreements) (Amendment) Regulations 2004, the Consumer Credit (Disclosure of
Information) Regulations 2004 and the Consumer Credit (Early Settlement)
Regulations 2004 in June 2004, the Consumer Credit (Miscellaneous Amendments)
Regulations 2004 in October 2004 and the Consumer Credit Act 1974 (Electronic
Communications) Order 2004 in December 2004. The remaining proposals for
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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reform (relating to unfair credit relationships, consumer credit licensing, the financial
limit and consumer redress) required primary legislation to amend the 1974 Act and
other legislation and are dealt with in this 2006 Act.
THE ACT
8. The main areas covered by the 2006 Act are:
• the regulation of consumer credit agreements and consumer hire agreements;
• the provision of information to debtors and hirers after the agreement is made;
• unfair relationships between debtors and creditors;
• the licensing of consumer credit and hire businesses and ancillary credit
businesses;
• the powers of OFT in relation to the licensing of consumer credit and hire
businesses and ancillary credit businesses;
• appeals from decisions of OFT in relation to the licensing of consumer credit
and hire businesses and ancillary credit businesses; and
• the extension of the jurisdiction of the Financial Ombudsman Service
established under the Financial Services and Markets Act 2000.
9. In addition to amending the 1974 Act, the 2006 Act amends:
• the Sheriff Courts (Scotland) Act 1971 and the Solicitors (Scotland) Act 1980
to allow the lay representation of debtors or hirers in applications relating to
time orders in Scotland;
• the Bankruptcy (Scotland) Act 1985, the Insolvency Act 1986 and the
Insolvency (Northern Ireland) Order 1989 as a consequence of the provisions
in the 2006 Act dealing with unfair relationships;
• the Criminal Justice and Police Act 2001 as a consequence of the provisions in
the 2006 Act concerning powers of OFT in relation to entry into premises;
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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• the Tribunals and Inquiries Act 1992 as a consequence of the provisions in the
2006 Act concerning the establishment of the Consumer Credit Appeals
Tribunal; and
• the Financial Services and Markets Act 2000 as a consequence of the
extension of the jurisdiction of the Financial Ombudsman Service.
10. The 2006 Act has no freestanding parts, apart from the transitional and other
supplementary provisions in sections 66-71. All the substantive provisions are
amendments to the 1974 Act and the other Acts mentioned above.
INTERPRETATION
11. The 1974 Act sets out a framework for the regulation of the supply of
consumer credit and the hiring of goods in the United Kingdom and provides that a
licence under the Act is necessary to carry on a consumer credit business, a consumer
hire business and an ancillary credit business (for definitions of these terms, please
see paragraph 14 below). The 1974 Act regulates the supply of credit and the hiring
of goods throughout the United Kingdom to “individuals” (which includes natural
persons, unincorporated associations and partnerships of any size) where the credit
provided or payments for hire do not exceed a specified limit (currently £25,000).
12. The 1974 Act imposes a system of trading control through regulating the
general business activities of those traders that constitute the consumer credit and hire
industry and it does this by licensing (Part 3 of the 1974 Act) and controlling the
methods of seeking business (Part 4 of the 1974 Act). Control over agreements is
done through the regulation of individual consumer credit or consumer hire
agreements, that is entry into agreements (Part 5 of the 1974 Act), matters arising
during the currency of agreements (Part 6 of the 1974 Act) and default under and
termination of agreements generally (Part 7 of the 1974 Act).
13. The 1974 Act also regulates the giving of security in relation to agreements
regulated under the Act and pawn broking (Part 8) and the licensing of ancillary credit
businesses (Part 10).
14. These explanatory notes use key terms defined in the 1974 Act, as set out
below, as well as, for convenience, certain abbreviated terms (which are marked with
an asterisk). Where the term is one used in the 1974 Act and the 2006 Act amends it,
the definition below is that used in and for the purposes of the 1974 Act prior to such
amendment.
• 1974 Act: Consumer Credit Act 1974. *
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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• 2006 Act: Consumer Credit Act 2006.*
• ancillary credit business: any business so far as it comprises or relates to
credit brokerage, debt-adjusting, debt counselling, debt collecting or the
operation of a credit reference agency.
• commencement: the date or dates on which a provision of the 2006 Act
commences (whether for all or specific purposes) in accordance with an order
made by the Secretary of State under Section 71. *
• consumer credit agreement: an agreement between an individual (the
“debtor”) and any other person (the “creditor”) by which the creditor provides
the debtor with credit not exceeding £25,000.
• consumer credit business: any business so far as it comprises or relates to the
provision of credit under regulated consumer credit agreements.
• consumer hire agreement: an agreement made by a person with an individual
(the “hirer”) for the bailment or (in Scotland) the hiring of goods to the hirer,
being an agreement which is not a hire-purchase agreement, is capable of
subsisting for more than three months and does not require the hirer to make
payments exceeding £25,000.
• consumer hire business: any business so far as it comprises or relates to the
bailment or (in Scotland) the hiring of goods under regulated consumer hire
agreements.
• exempt agreement: a consumer credit or hire agreement which is not a
regulated agreement under the 1974 Act by virtue of an exemption by or under
section 16 of the 1974 Act.
• FOS: the Financial Ombudsman Service. *
• FSA: the Financial Services Authority. *
• FSMA: Financial Services and Markets Act 2000. *
• fixed-sum credit: any facility under a credit agreement, other than running
account credit, whereby the debtor is enabled to receive credit (whether in one
amount or by instalments).
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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• group licence: a licence, issued by OFT (whether on an application by a
person or on OFT’s own motion), which during such period as OFT thinks fit
or, if it thinks fit, indefinitely, covers such persons and activities as are
described in the licence.
• individual: includes a partnership or any other unincorporated body of
persons not consisting entirely of bodies corporate.
• licence: a licence issued by OFT under the 1974 Act to carry on a consumer
credit business, a consumer hire business or an ancillary credit business.
• OFT: the Office of Fair Trading.
• regulated agreement: a consumer credit or consumer hire agreement
regulated by the 1974 Act.
• running-account credit: a facility under a credit agreement whereby the
debtor is enabled to receive from time to time (whether in his own person, or
by another person) from the creditor or a third party, cash, good and services
(or any of them) to an amount or value such that, taking into account payments
made by or to the credit of the debtor, the credit limit (if any) is not exceeded
(e.g. a credit card).
• standard licence: a licence issued by OFT to a person named in the licence on
an application made by that person, which, during the period of the licence’s
duration, covers such activities as are described in the licence.
COMMENTARY ON SECTIONS
AGREEMENTS REGULATED UNDER THE 1974 ACT
Section 1: Definition of “individual”
15. Section 1 amends section 189(1) of the 1974 Act to provide a new definition
of “individual”. This restricts the partnerships that are to be regarded as “individuals”
to those consisting of two or three partners, not all of whom are bodies corporate.
This means that in future borrowing or hire by partnerships of more than three
members will not be covered by the 1974 Act, i.e. these partnerships will be treated in
the same way as bodies corporate.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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Section 2: Removal of financial limits etc.
16. Section 2 removes the financial limit for the regulation of consumer credit and
consumer hire agreements under the 1974 Act. The 1974 Act currently applies only
to agreements where credit provided or the hire payments to be made do not exceed
£25,000. In future, all consumer credit and consumer hire agreements will be
regulated by the 1974 Act unless specifically exempted, regardless of the amount of
the credit or the amount of the hire payments. Section 2(3) extends the application of
the provisions regulating credit advertisements to advertisements offering credit
regardless of the sum involved, and regardless of whether the creditor requires
security.
Section 3: Exemption relating to high net worth debtors and hirers
17. Section 3 inserts a new section 16A after section 16 of the 1974 Act. Section
16A gives the Secretary of State power by order to provide for the exemption of
consumer credit agreements or consumer hire agreements from regulation under the
1974 Act where the debtor or hirer has a “high net worth”. The provisions relating to
unfair relationships will continue to apply to such agreements (i.e. the new sections
140A to 140C, inserted by sections 19-22 (see below)), as will the existing provisions
relating to extortionate credit bargains (i.e. sections 137-140) to the extent they
continue to have effect after commencement of new sections 140A-140C (see the note
in respect of Schedule 3 below) if, for example, the high net worth exemption comes
into force before the unfair relationships provisions.
18. In order that an agreement may be exempted under section 16A, the debtor or
hirer must be a natural person (i.e. not a partnership, unincorporated association or
body corporate) and it must include a declaration, in the specified form, that the
debtor or hirer agrees to forgo the protection and remedies that would be available
under the 1974 Act if the agreement were a regulated agreement. The debtor or hirer
must also provide the creditor or owner with a statement of “high net worth”, again in
the specified form, which has been made in relation to him by a specified type of
person (e.g. an accountant or a solicitor). “Specified” in this case means specified by
order of the Secretary of State.
19. A statement of “high net worth” must be current in relation to the agreement,
i.e. made no more than one year before the date of the making of the agreement. The
statement should state that the debtor or hirer, in respect of the previous financial year
(being the year ending 31st March preceding the current financial year in which the
statement is made), either:
• received income of a specified description of the specified amount or more
during that period; or
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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• had net assets of a specified description which were of a value not less than the
specified amount during the whole of that period.
“Specified” in this case means specified by order of the Secretary of State.
Section 4: Exemption relating to businesses
20. Section 4 inserts a new section 16B before section 17 of the 1974 Act. Section
16B exempts from regulation those consumer credit and hire agreements entered into
wholly or predominantly for the debtor’s or hirer’s business purposes where the credit
provided or hire payments to be made exceed £25,000, although the provisions
relating to unfair relationships will continue to apply (i.e. the new sections 140A to
140C inserted by sections 19-22 (see below)) as will the existing provisions relating to
extortionate credit bargains (i.e. sections 137-140 of the 1974 Act) as they will in
relation to section 16A (see the notes in respect of Schedule 3 below).
21. Whether an agreement is for a business purpose will depend on the
circumstances of the proposed transaction. A credit or hire agreement will be
presumed to be wholly or predominantly for business purposes where it includes a
declaration by the debtor or hirer to that effect, unless at the time the agreement was
made, the creditor or owner, or any person who has acted on his behalf in connection
with the entering into of the agreement, knows or has reasonable cause to suspect that
the declaration is not true.
Section 5: Consequential amendments relating to ss. 1 to 4
22. Section 5 provides for amendments to the 1974 Act arising as a consequence
of sections 1 to 4. Section 5(7) provides that the Secretary of State has power by
order to alter the amount of £25,000 under the new section 16B inserted in the 1974
Act by section 4 of the 2006 Act. That power is subject to the affirmative resolution
procedure.
STATEMENTS TO BE PROVIDED IN RELATION TO REGULATED
AGREEMENTS
Section 6: Statements to be provided in relation to fixed-sum credit agreements
23 Section 6 inserts a new section 77A after section 77 of the 1974 Act. Section
77A will require creditors in regulated fixed-sum credit agreements to provide debtors
with annual statements in the specified form, the first of which is required within one
year of the day after the date on which the agreement was made.
24. If a creditor does not give the debtor an annual statement when required to do
so, then he is not entitled to enforce the agreement during the period of his noncompliance
and the debtor is not liable to pay any interest during this period. The
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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debtor is also not liable to pay any default sum (see note in respect of section 18
below) that would have become payable during the period of non-compliance or
would have become payable after the end of that period in connection with a breach of
the agreement occurring during that period. A creditor will not be required to give the
debtor an annual statement if there are no further sums payable under the agreement.
Section 7: Further provision relating to statements
25. Section 7 inserts a new section 78(4A) after section 78(4) of the 1974 Act.
Section 78(4) of the 1974 Act requires creditors to issue statements to debtors setting
out specified information in respect of running account credit agreements at intervals
of not more than 12 months. Regulations made by the Secretary of State under the
new section 78(4A) may require creditors to include specified information about the
consequence of failing to make repayments, or only making minimum repayments, in
statements issued under section 78(4) of the 1974 Act. The new subsection (3) makes
provision for the giving of statements under sections 77A (inserted by section 6 of the
2006 Act) and 78(4) of the 1974 Act where there is more than one debtor to whom
credit is provided. If there are two or more debtors, a debtor may provide a
dispensing notice to the creditor so as to mean that the creditor is not obliged to
provide a statement to that debtor. However, dispensing notices will not be effective
if that would mean that no debtor will receive a statement under section 77A or 78.
DEFAULT UNDER REGULATED AGREEMENTS
Section 8: OFT to prepare information sheets on arrears and default
26. Section 8 inserts a new section 86A at the beginning of Part 7 of the 1974 Act.
Section 86A requires OFT to prepare and publish information sheets for debtors and
hirers about arrears and default. A creditor or owner must give a debtor or hirer an
arrears information sheet at the same time as a notice of sums in arrears in accordance
with new sections 86B and 86C inserted by sections 9 and 10 (see below) and a
default information sheet at the same time as a default notice (in accordance with
section 87 of the 1974 Act).
27. The information sheets will set out information to help debtors and hirers who
are in arrears or default (e.g. information about the legal consequences of the debtor’s
or hirer’s general situation, debt management options and the contact details of advice
providers).
Section 9: Notice of sums in arrears under fixed-sum credit agreements etc.
28. Section 9 inserts a new section 86B after the new section 86A (inserted into
the 1974 Act by section 8). Section 86B provides that creditors and owners must give
to debtors and hirers notices of sums in arrears in respect of regulated agreements that
are fixed sum credit agreements or hire agreements. A creditor or owner must give a
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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notice in the specified form, including an arrears information sheet, to a debtor or
hirer 14 days after a point in time where:
• the debtor or hirer is required to have made two (in the case of agreements
with a repayment interval of more than one week) or four (in the case of
agreements with a repayment interval of one week or less) payments under
the agreement before that time;
• the total sum that has been paid by the debtor or hirer under the agreement
up to that time is less than the amount that he is required to have paid at
that time;
• the amount of the debtor’s or hirer’s shortfall is no less than the total of the
last two (in the case of agreements with a repayment interval of more than
one week) or four (in the case of agreements with a repayment interval of
one week or less) payments required to have been paid under the
agreement before that time subject as set out below;
• the creditor or owner is not already required to provide the debtor or hirer
with a notice of sums in arrears in relation to that agreement; and
• there is no sum payable by the debtor or hirer under a judgment given
before that time in relation to the credit or hire agreement.
Thereafter the creditor or owner will be required to give to the debtor or hirer a notice
of sums in arrears at intervals of six months until he ceases to be in arrears and has
paid all sums of interest or default sums that are payable in relation to his arrears, or a
judgment is made in relation to the sums payable under that agreement.
29. In the case of agreements with repayment intervals of one week or less made
more than 20 weeks before the day on which the debtor or hirer is required to have
made the most recent payment under the agreement, the amount of the debtor’s or
hirer’s shortfall is calculated on the basis only of payments missed in the period of 20
weeks ending with that day.
Section 10: Notice of sums in arrears under running-account credit agreements
30. Section 10 inserts a new section 86C after the new section 86B inserted into
the 1974 Act by section 9 of the 2006 Act. Section 86C requires that a creditor must
give to the debtor notices of sums in arrears in respect of regulated agreements that
are running account agreements. A creditor must give to a debtor a notice in the
specified form, including an arrears information sheet after a point in time where:
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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• the debtor should have made at least two repayments before that time;
• the last two payments required before that time have not been made;
• the creditor has not already been required to provide the debtor with a
notice of sums in arrears in relation to either of those payments; and
• there is no sum payable by the debtor under a judgment given before the
time in relation to the credit agreement.
31. The creditor must give the notice at a time no later than the time that he is
required to give the debtor the next regular statement due under section 78(4) of the
1974 Act.
Section 11: Failure to give notice of sums in arrears
32. Section 11 inserts a new section 86D after the new section 86C (inserted into
the 1974 Act by section 10). Section 86D sets out the consequences for a creditor or
owner if he fails to give a notice as required by sections 86B or 86C. If the creditor or
owner fails to provide a notice of sums in arrears when required to do so, then during
the period of his failure to provide the notice (i.e. from the date that it was required to
be given until the end of the day on which it is eventually provided), he is not entitled
to enforce the agreement. In addition, the debtor or hirer is not liable to pay any
interest that relates to the period of the creditor or owner’s failure, nor is the debtor or
hirer liable to pay any default sum (see the notes in respect of section 18 below)
which becomes payable during that period.
Section 12: Notice of default sums
33. Section 12 inserts a new section 86E after the new section 86D (inserted into
the 1974 Act by section 11). Section 86E applies to situations where a debtor or hirer
under a regulated agreement incurs a default sum (as defined by section 18). A
creditor or owner must give the debtor or hirer a notice in the specified form when a
default sum becomes payable as a consequence of a breach of the agreement. The
Secretary of State has the power to provide that this only applies where the default
sum exceeds a specified amount.
34. A creditor or owner may only require a debtor or hirer to pay interest in
connection with a default sum 28 days after the day the notice was given to the debtor
or hirer. If the creditor or owner fails to give a notice to the debtor or hirer then he is
not entitled to enforce the agreement until he gives the notice to the debtor or hirer.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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Section 13: Interest on default sums
35. Section 13 inserts a new section 86F after the new section 86E (inserted into
the 1974 Act by section 12). Section 86F provides that a creditor or owner may only
require simple interest to be paid in respect of default sums (see notes in respect of
section 18 below) payable by the debtor or hirer, including sums payable under noncommercial
or small agreements (see definitions in section 189(1) of the 1974 Act).
Section 14: Default notices
36. Section 14 amends section 88 of the 1974 Act to extend from seven to 14 days
the minimum period after which a creditor or owner may take action in respect of the
agreement after having issued a default notice. Section 87 of the 1974 Act requires a
creditor or owner to give the debtor or hirer a default notice in the prescribed form if
he wishes to terminate the agreement, demand earlier payment of a sum, recover
possession of any goods or land, treat any right conferred on the debtor or hirer by the
agreement as terminated, restricted or deferred, or to enforce any security. Section 88
is also amended to allow the Secretary of State to prescribe information in the default
notice to include any matters relating to the agreement (e.g. information about
whether the agreement includes a term providing for the charging of post-judgment
interest).
Section 15: Enforceability of regulated agreements
37. The 1974 Act provides that in certain circumstances where the requirements of
the Act are not complied with in relation to regulated agreements or to security
provided in relation to such agreements, the agreement or security is enforceable
against the debtor or hirer only on an order of the court. Sections 127(1) and (2) of
the 1974 Act give the court discretion whether to grant an enforcement order in those
circumstances subject to subsections (3) and (4). Section 127(3) and (4) provides that
a court shall not make an enforcement order (i.e. a consumer credit or hire agreement
will be automatically unenforceable) where:
• prescribed requirements in relation to the execution of regulated agreements
(set out in section 61(1)(a) of the 1974 Act) were not complied with or a
document containing all the prescribed terms of the agreement was not signed
by the debtor or hirer;
• the specific requirements imposed by sections 62, 63 and 64 of the 1974 Act in
relation to cancellable agreements as regards supplying copies of the
agreement before and after its execution and giving notice of the cancellation
rights are not complied with. A cancellable agreement is an agreement which,
by virtue of section 67 of the 1974 Act, may be cancelled by the debtor or
hirer, essentially where oral representations about the agreement have been
made to the debtor or hirer face-to-face before the agreement is made other
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
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than on the business premises of the creditor or owner or connected persons
and where the agreement is not secured on land.
38. Section 15 repeals sections 127(3) to (5) of the 1974 Act (subsection (5) is
consequential on subsection (3)), which means that a court will have the power to
determine in its discretion whether agreements are enforceable in accordance with
section 127(1) and (2) regardless of the breach in question.
Section 16: Time orders
39. Section 129 of the 1974 Act provides that a debtor or hirer may apply to the
court for a time order. A time order is an order in which the court may reschedule any
payments due under the regulated agreement. Section 16 amends section 129(1) of
the 1974 Act and inserts a new section 129A after section 129 of the 1974 Act.
Section 129 sets out the circumstances in which a debtor or hirer may apply for, and a
court may grant, a time order in respect of a regulated agreement. The amended
section 129 will enable a debtor or hirer to apply for a time order after having
received a notice of sums in arrears (where required by the new sections 86B or 86C
inserted in the 1974 Act by this 2006 Act), in addition to being able to make an
application after having received a default notice (under section 87).
40. This does not permit a debtor or hirer to automatically make an application.
The new section 129A provides that, having received a notice of sums in arrears, the
debtor or hirer may only make an application if he has given a notice to the creditor or
owner including certain required information and a period of 14 days has passed since
he gave the notice to the creditor or owner. This requirement does not apply to
debtors or hirers who receive default notices under section 87 of the 1974 Act. A
notice given under section 129A by a debtor or hirer must indicate that the debtor or
hirer intends to make the application for a time order in relation to the agreement,
indicate that he wants to make a proposal to the creditor or owner in relation to his
making of payments under the agreement and give details of that proposal. Although
the notice must be in writing, there are no specific requirements as to its form.
41. Section 16(4) of the 2006 Act amends the Sheriff Courts (Scotland) Act 1971
to provide that, in respect of applications relating to time orders under section 129 and
130(6) of the 1974 Act made in Scotland, the rules of the Sheriff Court may permit
the debtor or hirer to be represented by a person who is not an advocate or a solicitor.
(Section 130(6) of the 1974 Act allows a court to vary or revoke a time order on the
application of any person affected by it.) Subsection (5) makes it clear that, in such
circumstances, a person representing a debtor or hirer will not breach section 32(2B)
of the Solicitors (Scotland) Act 1980, which prohibits persons who are not advocates
or solicitors from preparing certain documents. This brings the position in Scotland
into line with that in the rest of the UK where lay representation is already permissible
in these cases.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
14
Section 17: Interest payable on judgment debts etc.
42. Section 17 inserts a new section 130A after section 130 of the 1974 Act.
Section 130A imposes requirements on a creditor or owner to notify and give
information to debtors and hirers in the specified form about interest applying to a
judgment debt by virtue of a term of the agreement enabling interest to accrue after
judgment until payment. After the giving of a judgment, where such interest applies
to a judgment sum, the creditor or owner must notify the debtor or hirer and provide
further notices at intervals of not more than 6 months. The notice may be
incorporated into any other statement or notice that the creditor or owner gives to the
debtor or hirer under the 1974 Act. The debtor or hirer will not be liable to pay such
interest for any period when the creditor or owner has not complied with the
requirements of this section. This provision does not apply where a court has the
power to order that interest at a specified rate be payable on a judgment sum.
Section 18: Definition of “default sum”
43. Section 18 inserts a new definition of “default sum” into the 1974 Act.
“Default sum” means a sum payable by a debtor or hirer in connection with his breach
of a regulated agreement (e.g. a charge imposed for late payment of an instalment due
under the agreement or a fee imposed for exceeding a credit limit on a credit card). A
default sum does not include sums that, as a consequence of a breach of the
agreement, become payable earlier than they otherwise would have done. It does not
include interest.
UNFAIR RELATIONSHIPS
44. Sections 19-22 repeal and replace sections 137-140 of the 1974 Act which
empowered the Court to reopen an ‘extortionate credit bargain’. A bargain was
‘extortionate’, if at the time the agreement was made, it required the debtor to make
payments which were grossly exorbitant or otherwise grossly contravened ordinary
principles of fair dealing. In coming to its conclusions the court was required to
consider evidence produced concerning specific factors relevant to prevailing interest
rates, the debtor (e.g. age, experience or degree of financial pressure) and creditor
(e.g. accepted risk having regard to value of security).
45. The amended provisions will enable a court to consider whether the
relationship between the creditor and debtor arising out of that agreement is unfair to
the debtor because of the terms of the agreement, the way in which the agreement is
operated by the creditor or any other thing done or not done by or on behalf of the
creditor before or after the agreement was made. The court may take into account all
matters it thinks relevant relating to the creditor and debtor in making its assessment.
The court is provided with a broad range of remedies under new section 140B to
address the unfairness.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
15
Section 19: Unfair relationships between creditors and debtors
46. Section 19 inserts a new section 140A after section 140 of the 1974 Act.
Section 140A(1) enables a court to make an order under the new section 140B,
inserted into the 1974 Act by section 20 (see below) if it finds that the relationship
between the creditor and the debtor arising out of a credit agreement, or that
agreement taken with any related agreement, is unfair to the debtor. A relationship
may be unfair to the debtor because of one or more of the following:
• any of the terms of the agreement or any related agreement;
• the way in which the creditor has exercised or enforced any of his rights under
the agreement or any related agreement;
• any other thing done (or not done) by, or on behalf of, the creditor (whether
occurring before or after the making of the agreement or any related
agreement).
47. The court may take into account all matters it thinks relevant (including
matters relevant to the debtor and to the creditor) in determining whether a
relationship is unfair. This may include anything done or not done on behalf of or in
relation to the creditor’s associates or former associates (as defined by section 184 of
the 1974 Act).
48. Section 140A does not apply to agreements that are exempt under section
16(6C) of the 1974 Act. Section 16(6C) exempts consumer credit agreements secured
on land that are regulated by FSA under FSMA.
Section 20: Powers of the court in relation to unfair relationships
49. Section 20 inserts a new section 140B after the new section 140A (inserted
into the 1974 Act by section 19). Section 140B sets out the types of orders that a
court may make in relation to any determination that a relationship between a creditor
and a debtor is unfair.
Section 21: Interpretation of ss.140A and 140B of the 1974 Act
50. Section 21 inserts a new section 140C after the new section 140B (inserted
into the 1974 Act by section 20). The new section 140C defines the types of
agreements that are covered by sections 140A and 140B. Any agreement that
involves the provision of credit to an individual, whether or not regulated by the 1974
Act (except as specified (see paragraph 48 above)), is covered. The sections also
cover, through the definition of “related agreement”, the practice where the creditor
enters into successive credit agreements with a debtor for the purpose, for example, of
increasing the total amount of the debt or obtaining multiple fees from the debtor for
setting up each loan.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
16
Section 22: Further provision relating to unfair relationships
51. Section 22 makes consequential amendments. In particular, it inserts a new
section 140D, which requires OFT to give advice and information about the
interaction between the provisions on unfair relationships and Part 8 of the Enterprise
Act 2002. Part 8 of the Enterprise Act 2002 allows OFT to bring proceedings against
a person who, as a consequence of a breach of a statutory obligation, harms the
collective interests of consumers in the United Kingdom. The advice and information
published by OFT may include examples of the circumstances, conduct or practices
that, in the opinion of OFT, could give rise to an unfair relationship between creditors
and debtors.
52. Section 22(3) repeals sections 137 to 140 of the 1974 Act, which permit the
court to re-open or set aside a credit agreement if it finds the credit bargain to be
extortionate (see paragraph 44 above).
BUSINESSES REQUIRING A LICENCE AND CONSEQUENCES OF NOT
BEING LICENSED
Section 23: Definitions of consumer credit business and consumer hire business
53. Section 23 redefines “consumer credit business” and “consumer hire business”
to clarify that these include respectively being a creditor or an owner under regulated
agreements. “Creditor” and “owner” are defined in section 189(1) of the 1974 Act.
Section 24: Debt administration
54. Section 24 amends section 145 of the 1974 Act to include ‘debt
administration’ as a type of ancillary credit business. ‘Debt administration’ means the
taking of steps to perform duties under a consumer credit or consumer hire agreement
on behalf of the creditor or owner, or to exercise or enforce rights under such an
agreement on behalf of the creditor or owner (so far as these steps do not constitute
debt collecting). As a consequence, people carrying on a business of debt
administration will need to be licensed.
Section 25: Credit information services
55. Section 25 amends section 145 of the 1974 Act to include provision of ‘credit
information services’ as a type of ancillary credit business. ‘Credit information
services’ covers those businesses that help individuals to locate and correct records
relating to their financial standing held by credit reference agencies and others in the
credit and hire industries. As a consequence, people providing credit information
services as part of their business will need to be licensed.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
17
Section 26: Enforcement of agreements by unlicensed trader etc
56. Section 26 amends sections 40(1) and (2) of the 1974 Act to provide that a
regulated consumer credit or hire agreement is unenforceable by a person acting in the
course of a consumer credit or hire business who is not licensed to carry on a
consumer credit or a consumer hire business of a description which covers the
enforcement of the agreement. In addition, as under the current section 40, the new
section 40(1A) provides that a regulated agreement is unenforceable if the creditor or
owner who made the agreement did so in the course of a consumer credit or a
consumer hire business but was not licensed at that time to make the agreement.
Where a person has made an agreement without being licensed, that person may apply
to OFT for an order to treat him as if he had been licensed to make the agreement.
57. Subsections (8) and (9) of the amended section 40 ensure that a person who is
not required to have a licence under section 21(2) or (3) of the 1974 Act to carry out
the acts referred to in sections 40(1) and (1A) is not caught by these provisions.
APPLICATIONS FOR LICENCES AND FITNESS TO HOLD A LICENCE
ETC.
Section 27: Charge on applicants for licences etc.
58. Section 27 inserts a new section 6A after section 6 of the 1974 Act. Section
6A requires applicants for licences (or for licence renewal) to pay to OFT such charge
as OFT specifies by general notice towards OFT’s costs of carrying out its functions
under the 1974 Act. OFT may specify different charges for different classes of
persons, including no charges. OFT must obtain the approval of the Secretary of State
and HM Treasury before specifying a charge. The section also amends section 189 of
the 1974 Act (definitions) to clarify that the definition of “costs” means “expenses” in
Scotland (which is the name given to the costs involved in legal proceedings in that
jurisdiction).
Section 28: Applications for standard licences
59. Section 28 inserts a new section 24A after section 24 of the 1974 Act. Section
24A deals with applications for standard licences. The purpose of the new section
24A is to give OFT power to manage the application process in a more efficient way
by requiring people to specify in applications for licences what businesses they want
the licence to cover. An applicant must specify whether he wants a licence covering
one or more of consumer credit business, consumer hire business and ancillary credit
business generally or a licence which only covers one or more descriptions of
business within any of these broad types of business. It is OFT which will specify the
descriptions of business within the types of business specified in subsection (4) that
applicants may use in their applications. Under section 25(1) to (1AD) of the 1974
Act, as amended by section 29, if an applicant satisfies OFT that he is fit to do
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
18
everything he has applied for, he is entitled to a licence to do that. If not, there is
power for OFT to issue him with a more limited licence.
Section 29: Issue of standard licences
60. Section 29(2) amends section 25 of the 1974 Act specifically to require OFT in
determining fitness to have regard to the skills, knowledge and experience (in relation
to consumer credit, consumer hire or ancillary credit business) of the applicant and
anyone who will work for him under that licence, and the practices and procedures
that will be implemented in connection with the business, in addition to other matters
that are currently set out in the section. Those matters include evidence that the
applicant or an associate:
• has committed an offence involving fraud, other dishonesty or violence;
• has contravened provisions of the 1974 Act, Part 16 of FSMA (so far as it
relates to the new consumer credit jurisdiction of FOS) and any other laws
relating to consumer credit (or the equivalent in another EEA state);
• has practised discrimination; or
• has engaged in business practices, which appear to OFT to be deceitful,
oppressive, unfair or improper (whether unlawful or not).
Section 29(2) also inserts a new subsection 25(2B) which makes it clear that the
business practices which the OFT may consider to be deceitful, oppressive, unfair or
improper include practices which appear to the OFT to involve irresponsible lending.
Section 30: Guidance on fitness test
61. Section 30 inserts a new section 25A after section 25 of the 1974 Act. Section
25A requires OFT to prepare and publish guidance as to the way it determines the
fitness of a person to hold a licence. OFT may revise any guidance on fitness. OFT
must consult such persons as it thinks fit in preparing the guidance and publish it in a
way that brings it to the attention of those likely to be affected by it. OFT must have
regard to the latest published guidance in carrying out its licensing functions.
Section 31: Variation of licences etc.
62. Sections 30 and 31 of the 1974 Act give OFT the power to vary licences on
application or compulsorily. Section 32 of the 1974 Act gives OFT the power to
suspend or revoke licences. Section 31 of the 2006 Act makes consequential
amendments to these sections of the 1974 Act arising from the new section 24A
inserted by section 28 of the 2006 Act.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
19
Section 32: Winding up of standard licensee’s business
63. Section 32 inserts a new section 34A after section 34 of the 1974 Act. If OFT
determines to renew a licence on different terms to the application, to vary it
compulsorily, or to revoke or suspend a licence OFT may as part of that determination
authorise the licensee to carry on specified activities (for a specified period) which it
would otherwise no longer be licensed to carry on for the purpose of winding up or
transferring its business. OFT may specify requirements which the licensee must
comply with during the period of the authorisation failing which OFT may terminate
the authorisation by notice to the licensee. Subsection (5) ensures (inter alia) that a
licensee so authorised will not incur criminal liability for carrying on such activities
without a licence.
Section 33: Consequential amendments relating to sections 27 to 32
64. Section 33 makes amendments to other provisions of the 1974 Act and to
provisions of FSMA consequential on the introduction of the new provisions in
relation to the issue of licences by OFT.
DURATION OF LICENCES
Section 34: Definite and indefinite licences
65. Section 34 amends the definitions of ‘standard licence’ and ‘group licence’ in
the 1974 Act and enables OFT to issue indefinite standard licences as the norm. It
provides for OFT to issue licences either indefinitely or for a specified period,
provided definite licences do not exceed a period prescribed by the Secretary of State,
and to vary the duration of licences in certain circumstances.
66. Section 37 of the 1974 Act, which deals with the circumstances giving rise to
termination of a standard licence, is amended to enable licensees to terminate such
licences by notice to OFT. OFT may specify the form and content of the notice
required for a licensee to terminate such a licence.
Sections 35 - 37: Charges for indefinite licences
67. Sections 35 to 37 insert new sections 28A, 28B and 28C after section 28 of the
1974 Act relating to periodic payments for indefinite licences. Holders of indefinite
standard licences and original applicants for indefinite group licences shall pay OFT a
periodic charge specified by general notice, which may include different provision for
different cases. OFT is given the power to extend the period for a person to make
payments in respect of indefinite licences if there is a good reason for doing so.
Failure to pay a periodic charge in respect of a standard licence during the payment
period (or extended payment period) results in the licence being terminated and
details of licences terminated for this reason must be kept on OFT’s public register.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
20
FURTHER POWERS OF OFT TO REGULATE CONDUCT OF LICENSEES
ETC.
Section 38: Power of OFT to impose requirements on licensees
68. Section 38 inserts a new section 33A after section 33 of the 1974 Act. Section
33A provides OFT with a new intermediate power (additional to existing powers of
revocation, suspension or variation of a licence) to impose requirements on licensees.
OFT may impose a requirement in relation to a business carried on (or proposed to be
carried on) under the licence where it is dissatisfied with any matter in connection
with:
• a business being carried on, or which has been carried on, by a licensee or
associate or former associate of the licensee;
• a proposal made by a licensee, or associate or former associate of the licensee,
to carry on a business; or
• any other conduct of such a person,
whether occurring before or after the person became a licensee.
69. OFT may, by notice, require the licensee to do or not to do (or cease doing)
anything specified in the notice to address the matter with which OFT is dissatisfied
or to ensure that the same or similar matters do not arise. The requirement must relate
to a business that the licensee is carrying on, or is proposing to carry on, under the
licence. OFT may take action to impose a requirement whilst dealing with an
application for a licence to be issued.
Section 39: Power of OFT to impose requirements on supervisory bodies
70. Section 39 inserts a new section 33B after the new section 33A (inserted into
the 1974 Act by section 38). Section 33B deals with the power of OFT to impose
requirements on the responsible person in relation to a group licence where OFT is
dissatisfied with the manner in which that person is regulating or otherwise
supervising, or proposes to regulate or supervise, licensees under that licence. A
requirement imposed under this provision may only relate to the practices and
procedures of the responsible person for regulating or otherwise supervising licensees
under the licence in connection with their carrying on of businesses under the licence.
A person is a “responsible person” in relation to a group licence if he is the original
applicant under it and he has a responsibility (whether by virtue of an enactment, an
agreement or otherwise) for regulating or otherwise supervising persons who are
licensees under the licence.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
21
Section 40: Supplementary provision relating to requirements
71. Section 40 inserts a new section 33C after the new section 33B (inserted into
the 1974 Act by section 39). Section 33C(3) provides that a person cannot be
required under section 33A or 33B to compensate or otherwise make amends to
another person. Section 33C gives OFT the power to vary or revoke requirements on
its own motion or to do so on application by the person on whom the requirement has
been imposed. It gives the same rights to make an application for the variation or
revocation of a requirement to a person who is named in the requirement and
prevented from being employed by the person on whom the requirement is imposed,
or restricted as to the activities that he may engage in as an employee, or is otherwise
prevented or restricted from doing something in connection with the business under
the licence (an “affected person” for the purpose of these notes).
Section 41: Procedure in relation to requirements
72. Section 41 inserts a new section 33D after the new section 33C (inserted into
the 1974 Act by section 40). Section 33D sets out the procedure OFT must follow
when imposing requirements. When it is minded to impose, vary or revoke a
requirement, OFT must give a notice to any person on whom the requirement is or
would be imposed and any affected person. The notice should inform him of OFT’s
reasons for wishing to impose, vary or revoke the requirement and invite the person to
submit representations as to OFT’s proposed determination to impose, vary or revoke
the requirement.
73. OFT does not need to issue a notice if the proposed determination is in the
same terms as one proposed by the person on whom the requirement is or would be
imposed or an affected person (so that if OFT and that person agree on the content of
a proposed requirement, the notice procedure is not necessary in relation to that
person).
Section 42: Guidance on requirements
74. Section 42 inserts a new section 33E after the new section 33D (inserted into
the 1974 Act by section 41). Section 33E requires OFT to issue guidance as to how it
exercises or how it proposes to exercise its powers in relation to the imposition,
variation or revocation of requirements. OFT must have regard to this guidance in
exercising its powers in relation to requirements.
Section 43: Consequential amendments relating to requirements
75. Section 43 provides for a right of appeal for persons on whom a requirement is
imposed and affected persons against imposition, variation or revocation of a
requirement by OFT or refusal by OFT of an application by the appellant for variation
or revocation of a requirement. It also provides that requirements and details of their
variation will have to be recorded in the public register held by OFT.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
22
POWERS AND DUTIES IN RELATION TO INFORMATION
Section 44: Provision of information etc. by applicants
76. Section 44 deals with the information applicants under the 1974 Act may be
required to provide in connection with their application. OFT may require additional
information or documents that are relevant to the application, before the application is
determined. Where an applicant has made an application to OFT, but it has not been
determined, and OFT has published a general notice specifying any additional
information required to be provided in connection with future applications then the
applicant whose application is pending must provide OFT with that additional
information.
77. If any information or document provided by an applicant in relation to his
application is superseded or otherwise affected by any change in circumstances, or if
any errors come to light during the period from when the application was made but
before its determination, the applicant must notify OFT within 28 days of the
information or document being superseded, the change in circumstances occurring, or
the applicant becoming aware of the error or omission. This does not apply to clerical
errors that do not affect the substance of the document, or anything that the applicant
must notify OFT about under section 36 (duty to notify changes).
Section 45: Duties to notify changes in information etc.
78. Section 45 inserts a new section 36A after section 36 of the 1974 Act, which
concerns the duty on licensees to notify OFT of certain changes to their
circumstances. Section 36A(2) requires licensees to provide OFT with information or
documents in respect of a relevant application, where OFT has (after the application
has been determined) published a general notice requiring the provision of that
information. In this section a relevant application means the original application for a
standard or group licence, or an application for the renewal or variation of such a
licence.
79. After the determination of a relevant application, the holders of standard
licences and original applicants for group licences must inform OFT (within 28 days
of their becoming aware) of all documents and information which they have provided
under section 6 of the 1974 Act or under this section, which have or has been
superseded or otherwise affected by a change in circumstances. Any change of
circumstances must fall within a description specified by OFT by general notice that
must be relevant to a question of fitness of persons to have a standard licence or the
public interest in maintaining a group licence.
80. The same persons must also notify OFT of any errors or omissions in any
information or document which they have provided by virtue of section 6 or this
section that comes to their attention following determination of a relevant application.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
23
Section 36A does not require a licensee to notify OFT of anything that he is already
required to notify OFT about under section 36 of the 1974 Act or any clerical error or
omission in any information or document that does not affect the substance of the
information or document.
Section 46: Power of OFT to require information generally
81. Section 46 inserts a new section 36B after the new section 36A (inserted into
the 1974 Act by section 45). Section 36B allows OFT, on giving notice, to require a
person to provide specified information and documents. The notice must set out
OFT’s reasons for requiring the information and documents. OFT may require such
information or documents from the holder of a standard licence and the original
applicant for a group licence only if it is reasonably required for the exercise of OFT’s
functions under the 1974 Act. It may require information from others if a specified
act or omission has occurred (or OFT has reason to suspect that a specified act or
omission has occurred) and the production of the information or document is
reasonably required to enable OFT to take steps under Part 3 of the 1974 Act or to
consider whether to do so. Those acts or omissions are specified in section 36B(6).
Section 47: Power of OFT to require access to premises
82. Section 47 inserts a new section 36C after the new section 36B (inserted into
the 1974 Act by section 46). Section 36C allows OFT to issue a notice requiring a
licensee under a standard licence or the original applicant for a group licence to
ensure that an officer of an enforcement authority (as defined in section 161(1) of the
1974 Act) may enter the specified premises on reasonable notice and at reasonable
times for the purposes of observing the licensee’s or applicant’s carrying on of his
business, and to inspect relevant specified documents relating to the licensee’s or
applicant’s business kept at those premises, where it is reasonably required for
purposes connected with OFT’s functions under the 1974 Act. It may issue such a
notice to persons who are licensees under group licences if the acts or omissions set
out in section 36B(6) have occurred or OFT has reason to believe they have occurred
and the observation or inspection is reasonably required to enable OFT to take a step
under Part 3 of the 1974 Act or to consider whether to do so.
83. The licensee must give such access on such days and at such hours as OFT
reasonably requires. A licensee is not required to secure access to premises if OFT
has not given reasonable notice or the access is sought in respect of premises used
solely as a dwelling. An officer of an enforcement authority inspecting a document
may require anyone on the premises who is involved in the licensee’s business to give
him an explanation of that document.
Section 48: Entry to premises under warrant
84. Section 48 inserts a new section 36D after the new section 36C (inserted into
the 1974 Act by section 47). Section 36D allows OFT to obtain a warrant from a
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
24
justice of the peace or (in Scotland) a sheriff if he is satisfied that there are reasonable
grounds for believing that there is on the premises information or documents in
relation to which OFT could impose a requirement under section 36B and that, if such
a requirement were to be imposed, it would either not be complied with or the
information or documents would be tampered with. An officer of an enforcement
authority may be authorised to enter and search the specified premises, to seize and
detain any information of a description specified in the warrant. The officer may also
take such steps as are reasonably necessary to secure the protection of such documents
or information, take such persons and equipment with him as he thinks necessary and
use such force as reasonably necessary.
Section 49: Failure to comply with information requirement
85. Section 49 inserts a new section 36E after section 36D (inserted into the 1974
Act by section 48). Section 36E deals with the consequences of failing to comply
with an information requirement under the new section 36B or request to gain access
to premises under section 36C. OFT may apply to the court for an order to enforce an
information requirement or request to gain access to premises. If the information
defaulter is a body corporate, or an unincorporated association, an officer of the body
who is wholly or partly responsible for the failure may be required to pay costs or
expenses as specified in the court order. If the information defaulter is a partnership,
a member of that partnership may be so liable.
Section 50: Officers of enforcement authorities other than OFT
86. Section 50 inserts a new section 36F after the new section 36E (inserted into
the 1974 Act by section 49). Section 36F provides that anything done or not done by
an officer of an enforcement authority, other than OFT, acting under sections 36C and
36D, shall be treated as if done or not done by an officer of OFT, other than in respect
of any criminal proceedings brought against that officer, his enforcement authority or
the OFT in respect of anything done or not done by that officer. Such an officer may
not disclose any information that he obtains by virtue of new sections 36C or 36D
other than to OFT unless he has OFT’s approval or is under a duty to make the
disclosure.
Section 51: Consequential amendments relating to information
87. Section 51 makes certain consequential amendments to the 1974 Act in respect
of the sections relating to the provision of information to OFT or other enforcement
authority. It extends section 7 of the 1974 Act, which provides that it is an offence for
a person knowingly or recklessly to give OFT information that is false or misleading
in a material particular, to cover information given under any requirement imposed or
other provision made by or under the 1974 Act. The section also provides that breach
of a requirement imposed under the new sections 33A and 33B or certain of the
information provisions (see new sections 36A to 36C, inserted by sections 45 to 47 of
the 2006 Act) will not trigger the powers of entry and inspection under section 162 of
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
25
the 1974 Act nor will it trigger criminal liability under section 165 of the 1974 Act.
The section inserts a new section 174A into the 1974 Act, which makes clear that the
information powers in the 1974 Act, as amended by the 2006 Act, do not override
legal professional privilege.
CIVIL PENALTIES
Section 52: Power of OFT to impose civil penalties
88. Section 52 inserts a new section 39A after section 39 of the 1974 Act. Section
39A confers a power on OFT to impose civil penalties on persons who do not comply
with a requirement imposed by OFT under the new sections 33A, 33B or 36A inserted
in the 1974 Act by sections 38, 39 and 45 of the 2006 Act. If a person has failed to
comply with such a requirement, then OFT may, by giving the person a penalty
notice, impose on him a penalty of up to £50,000. A person who commits such a
breach is called a “defaulter”.
89. A penalty notice must state the amount of the penalty that is being imposed,
set out OFT’s reasons for determining to impose a penalty for that amount, specify
how the payment of the penalty may be made and specify the period within which the
penalty is required to be paid to OFT (which must not be earlier than the end of the
period during which an appeal may be brought against the imposition of the penalty).
The defaulter is required to pay the penalty in the manner specified in the penalty
notice.
90. The maximum penalty that may be imposed by OFT is £50,000 for every
breach of a requirement. In determining whether to impose a penalty, OFT must have
regard to its published statement of policy (see notes in relation of section 54 below)
and any penalty or fine that has already been imposed on the defaulter by any other
body in relation to the conduct the subject of the penalty. OFT must also have regard
to any other steps which it has taken or it might take in relation to the conduct in
question (for example, revocation or suspension of a licence) (see notes in respect of
section 53 below). If the defaulter does not pay the penalty, OFT may recover it and
the unpaid balance will incur interest.
Section 53: Further provision relating to civil penalties
91. Section 53 inserts a new section 39B after the new section 39A (inserted into
the 1974 Act by section 52). Before determining to impose a penalty on a person,
OFT must give a notice to that person which informs him that it is minded to impose a
penalty on him. That notice must also state the proposed amount of the penalty, set
out OFT’s reasons for being minded to impose a penalty and for proposing that
amount and the proposed period for the payment of the penalty, and invite him to
make representations in accordance with section 34 of the 1974 Act. The maximum
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
26
penalty may be changed by an order of the Secretary of State (approved by a
resolution of both Houses of Parliament).
92. OFT must give a general notice of the imposition of a penalty on a person who
is a responsible person in relation to a group licence, which must state the amount of
the penalty that is being imposed and set out OFT’s reasons for determining to impose
a penalty and for specifying that amount. A person may appeal in relation to the
decision of OFT to impose a civil penalty.
Section 54: Statement of policy in relation to civil penalties
93. Section 54 inserts a new section 39C after the new section 39B (inserted into
the 1974 Act by section 53). Section 39C requires OFT to prepare and publish a
statement of policy as regards the exercise of its powers in relation to penalties under
section 39A. In imposing any penalty, OFT must have regard to the statement of
policy and it cannot impose a penalty until it has published the statement of policy.
OFT may revise the statement of policy at any time after it has been published and
must publish it as revised. In preparing or revising the statement, OFT must consult
such persons as it thinks fit. OFT cannot publish a statement of policy without the
approval of the Secretary of State and it must publish it in such manner as it thinks fit
for the purpose of bringing it to the attention of those likely to be affected by it.
APPEALS
94. Sections 55, 56, 57 and 58 establish the Consumer Credit Appeals Tribunal
and deal with appeals to and from that Tribunal.
Section 55: The Consumer Credit Appeals Tribunal
95. Section 55 establishes the Tribunal and gives the Lord Chancellor the power to
make its procedural rules. Schedule 1 of the 2006 Act inserts Schedule A1 into the
1974 Act. This sets out requirements for the appointment of the President of the
Tribunal and the panels from which members of the Tribunal will be drawn, imposes
requirements in relation to their qualifications and terms of office and also provides
for the appointment of a Deputy President and administrative staff. It sets out the
powers of the Tribunal to make orders and to award costs.
Section 56: Appeals to the Consumer Credit Appeals Tribunal
96. Section 56 amends section 41 of the 1974 Act, which deals with appeals.
Appeals in respect of decisions by OFT under the 1974 Act will be to the Tribunal
and not the Secretary of State. The appeal is a rehearing of the determination
appealed against. The time limit for claims and the form of the notice of appeal are to
be specified in the rules of the Tribunal.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
27
Section 57: Appeals from the Consumer Credit Appeals Tribunal
97. Section 57 inserts a new section 41A after section 41 of the 1974 Act and
establishes the right to appeal to the Courts of Appeal of England & Wales and
Northern Ireland or Court of Session in Scotland on a point of law against a decision
of the Tribunal. If the appeal court considers that the decision is wrong in law it may
quash or vary the decision, substitute a decision of its own for the decision of the
Tribunal or remit (with directions, if it wishes) the matter back to the Tribunal for a
rehearing and decision. An appeal may be made from the Courts of Appeal to the
House of Lords with the leave of the Court or of the House of Lords. Appeals from
the Court of Session lie to the House of Lords in the manner provided for in section
40 of the Court of Session Act 1988.
Section 58: Consequential amendments relating to appeals
98. Section 58 makes certain amendments to the 1974 Act in relation to the new
appeals provisions. Section 58(5) includes the Consumer Credit Appeals Tribunal as
a tribunal covered by the Tribunals and Inquiries Act 1992. This means that the
Tribunal will be subject to the supervision of the Council on Tribunals.
OMBUDSMAN SCHEME
99. Sections 59, 60 and 61 extend the jurisdiction of FOS established under Part
16 of FSMA, to hear complaints involving licensed persons under the 1974 Act. It
provides for the detailed operation of the new consumer credit jurisdiction to be
determined largely by rules made by FOS on which it is required to consult in
accordance with the requirements of Schedule 2. A contravention by a licence-holder
of any provision relating to the consumer credit jurisdiction may be considered by
OFT in determining that person’s fitness to hold a licence (see the notes on Section 29
above).
Section 59: Financial Services Ombudsman scheme to apply to consumer credit
licensees
100. Section 59 inserts a new section 226A into FSMA introducing the new
consumer credit jurisdiction and will require holders of standard licences under the
1974 Act (and persons authorised to wind up a licensable business under new section
34A inserted by section 32 of the 2006 Act) to submit to the jurisdiction of the
scheme. The Secretary of State may bring within the consumer credit jurisdiction
types of business for which a licence is required under the 1974 Act. The scheme
operator may make rules to describe the complaints it will and will not deal with
under the jurisdiction it has been given. For example, if the Secretary of State was to
apply the jurisdiction to “consumer credit businesses”, FOS could consider (among
other things) acts or omissions relating to advice on credit, the making of agreements,
or the administration of accounts. The section sets out the circumstances in which a
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
28
complaint can be dealt with: namely, that the complainant meets the relevant
eligibility criteria (set by the new section 226A) and wishes for FOS to consider the
case; that the complaint falls within a description specified by FOS in its consumer
credit rules; and that the business being complained about falls within the remit of the
consumer credit jurisdiction. Finally, if the complaint can be dealt with under FOS’s
existing compulsory jurisdiction it will not be dealt with under consumer credit
jurisdiction (e.g. a complaint involving an FSA authorised firm engaging in consumer
credit activity will be covered by FSA’s rules under section 226 of FSMA, rather than
FOS’s rules under section 226A).
101. Section 226A(7) makes provision for the making of rules in relation to the
consumer credit jurisdiction by FOS. Such rules must be approved by FSA.
Section 60: Funding of ombudsman scheme
102. Section 60 prescribes the funding arrangements for the new scheme. It
provides for FOS to levy fees on licensees to meet both the costs of establishing the
consumer credit jurisdiction of the Ombudsman scheme and the costs of running the
consumer credit jurisdiction. They may also include a fee to cover the costs of
collection.
Section 61: Consequential amendments relating to ombudsman scheme
103. Section 61 makes consequential amendments to the 1974 Act and FSMA in
relation to the ombudsman scheme, including inserting reference to the consumer
credit jurisdiction where appropriate. Section 229 of FSMA is amended to allow FOS
to specify a maximum limit for compensation that can be awarded under the consumer
credit jurisdiction. Section 353 of FSMA, which relates to powers to allow the
disclosure of information, is amended to allow the Ombudsman to disclose
information about cases and decisions to OFT to assist or enable OFT to discharge its
licensing functions under the 1974 Act.
MISCELLANEOUS
Section 62: Monitoring of businesses by OFT
104. Section 1 of the 1974 Act sets out the general functions of OFT under the 1974
Act. Section 62 amends that section to impose a general duty on OFT to monitor
businesses being carried on under licences issued under the 1974 Act.
Section 63: Disapplication of section 101 of the 1974 Act
105. Section 63 inserts a new subsection (8A) into section 101 of the 1974 Act.
That section provides the hirer under a regulated consumer hire agreement with a
power to terminate the agreement by giving notice as prescribed by subsections (3) to
(6) of the section. Subsection 101(8) of the 1974 Act gives the OFT power to exempt
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
29
specific agreements from this provision on application by a person carrying on a
consumer hire business if it appears to the OFT that it would be in the interests of
hirers to do so. The new subsection 101(8A) provides that the OFT may by general
notice direct that section 101 does not apply to any consumer hire agreement falling
within a specified description subject to such conditions as it may specify. Such a
direction may only be given if it appears to the OFT that it is in the interests of hirers
to do so.
Section 64: Determinations etc. by OFT
106. Section 64 replaces section 183 of the 1974 Act. The new section 183 will
provide that OFT can vary or revoke any determination made or direction given by it
under the 1974 Act, except in relation to:
• the issue, renewal, variation or ending of suspension of licences,
• those determinations which can be appealed and are listed in the table in
section 41 of the 1974 Act (as amended by the 2006 Act),
• the extension of, or the refusal to extend, the period to make payment for a
licence in the new section 28B, inserted into the 1974 Act by section 36 of the
2006 Act,
• a decision under sections 40, 148 or 149 of the 1974 Act regarding the
enforcement of agreements entered into by persons without a licence or
following introduction by an unlicensed credit broker.
SCHEDULES
Schedule 1: The consumer credit appeals tribunal
107. Schedule 1 inserts a new Schedule A1 into the 1974 Act. The new Schedule
A1 relates to the establishment and running of the Consumer Credit Appeals Tribunal
established by section 55. Part 2 empowers the Lord Chancellor to appoint the
President, Deputy President, the panel of Chairmen and other members of the
Tribunal, to determine the terms of their appointment, remuneration and allowances
and to make provision for the appointment and remuneration of staff. Part 3 makes
provision about how the Tribunal is to be constituted for the purpose of hearing an
appeal and makes provision for the appointment of experts. Part 4 deals with the
Tribunal’s powers and procedures. Paragraph 8 empowers the Lord Chancellor to
direct the times and places at which the Tribunal may sit. Paragraphs 9 to 11 make
provision for the conduct of hearings, the rules of evidence and the rules of procedure
to be employed by the Tribunal. Paragraphs 12 to 16 make provision for the manner
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
30
in which the Tribunal may dispose of appeals, make decisions and award costs and
also for the enforcement of its costs orders.
Schedule 2: The consumer credit jurisdiction
108. Schedule 2 sets out a new Part 3A to be inserted into Schedule 17 of FSMA
and relates to the consumer credit jurisdiction of the Ombudsman. This requires FOS
to make procedural rules for the operation of the consumer credit jurisdiction of the
scheme. For example, it provides for rules to be made which allow an Ombudsman to
dismiss a complaint without consideration of its merits, for example where he deems
the complaint to be frivolous or vexatious, and for the early stages of the handling of a
complaint, for example a conciliation stage, to be handled by a member of FOS’s staff
other than an Ombudsman.
109. The new Part 3A also sets out the procedural matters to be followed by the
FOS for the making of rules in respect of the consumer credit jurisdiction. These
include, for example, the means of recognising a verified version of the consumer
credit rules and the obligation on FOS to consult before making any rules. The new
Part 3A also deals with the fees payable to the Ombudsman and the way in which
money awards made by the Ombudsman will be enforced.
Schedule 3: Transitional provision and savings
110. Schedule 3 sets out a number of transitional provisions which will apply
following the commencement of specified sections. Some of these provisions are set
out below in more detail.
111. As at the date of the commencement of section 86F, any term in a regulated
agreement existing at that date which enables the creditor or owner to impose
compound interest on a default sum will have the effect that he will only be able to
recover simple interest in that regard.
112. Sections 140A to 140C will apply to all new agreements made after the
commencement date and will apply to any agreements already made which continue
in existence at a specified date after commencement. The period between the
commencement date and the specified date is called the “transitional period.”
Sections 137 to 140 of the 1974 Act will continue to apply to agreements that have
been completed (e.g. no party has any further obligations under the agreement
because no further sums are payable) before the end of the transitional period. The
transitional period will allow creditors to ensure that any agreements that will
continue beyond the end of the transitional period comply with the amended 1974
Act.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
31
TERRITORIAL APPLICATION
113. The 2006 Act extends to the whole of the UK.
114. The responsibility for consumer credit regulation is transferred to Northern
Ireland under the devolved settlement. However, as the Northern Ireland Assembly is
currently suspended, Ministers have agreed that the 2006 Act should extend to
Northern Ireland.
COMMENCEMENT DATE
115. Section 71 gives the Secretary of State a power, by order, to bring all of the
provisions of the 2006 Act into force on such day as the Secretary of State may
appoint, and to appoint different days for different purposes.
These notes refer to the Consumer Credit Act 2006 (c.14)
which received Royal Assent on 30 March 2006
32
HANSARD REFERENCES
116. The following table sets out the dates and Hansard references for each stage of
this Act’s passage through Parliament.
Stage Date Hansard Reference
House of Commons
Introduction 18 May 2005 Vol.434, Cols 151
Second Reading 9 June 2005 Vol.434, Cols 1405-1489
Committee
15 June 2005
23 June 2005
(4 sessions)
Hansard Standing Committee D
Report and Third
Reading
14 July 2005 Vol.434, Cols 980-1044
Commons
Consideration of
Lords Amendment
29 March 2006 Vol.444, Cols 970-997
House of Lords
Introduction 19 July 2005 Vol.673, Cols 1377
Second Reading 24 October 2005 Vol.674, Cols 1025-1058
Committee
8 November 2005
16 November 2005
Vol.675, Cols GC131-180
Vol.675, Cols GC301-326
Report 18 January 2006 Vol.677, Cols 718-760
Third Reading 21 March 2006 Vol.680, Cols 139-152
Royal Assent – 30 March 2006 House of Lords Hansard, Vol.680, Col.861
House of Commons Hansard, Vol.444, Col.1061
? Crown copyright 2006
Printed in the UK by The Stationery OYce Limited
under the authority and superintendence of Carol Tullo, Controller of
Her Majesty’s Stationery OYce and Queen’s Printer of Acts of Parliament.
4/2006 334288 19585

Yashua Come Quickly

In what i see from day to day, ever more there is need for an outside influence in man's affairs.



In the vicinity of this earth lurks viscious and unwholesome creatures that have plagues mankind for centuries with thoughts of grandiour and success at a cost to their soul. History is inundated with myths and legends regarding great men of old such as 'gilgamesh', supposed men of great reknown who conquered and gains riches and treasures beyond mens wildest dreams. In olde english folklore there are faeries and tree silphs, arabian folklore speaks of djinns who gave the unwearing person who set them free, three wishes to whatever they dreamed of in a physical way.
So we all agree that there exists the idea of the unknown having intelligence, even if we personally do not believe such creatures exist.
To those people who work on a daily basis with the unknown forces, they are very much aware of the powers of this world and who controls them. Parapsychology goes into great depths in the field of the super-natural. Television is filled with examples of people who want to contact the OTHER SIDE and communicate with THEM.
Tarot cards and numerology for fortune telling and mapping out ones life to a stated course. We as human beings have been diviners of much knowledge yet where does knowledge come from, the taught but who teaches the taught ones this knowledge.
Ideas like this are prevalent in society in general as from infancy we are constantly told the same things over and over again. The 'bogey man is comming to get you' is a favorite saying from parents to children who decide to misbehave. Why is it that we as human beings do this? what are the underlying reason as to why we react this way to ourselves when something is supposedly done wrong.
At what point do we cease to be human anymore and more animal in nature so that we can ignore the suffering of another and not treat them as one of our own.

Since the unknown knowledge is kept so vehemently and violently secret the keepers of the knowledge are thus like their dreadful master, secret as they TRY to keep in the shadows.
The wicked one is seen to those that can see, he is unmasked and naked before their eyes because they know WHAT he is.
The secret societies are not secret neither are they societies for within all exists an inner membership which controls all knowledge and keeps it secret from the outer members.

The ruler of this world now walks as a man presiding over his last stand against GOD Almighty YAHWEH and his Son YEShuwa. So the last war is about to be sparked and the unruly one will be put in his place and the world will be remade anew. But what of the times that has been and the times to come, what will the the final histories of this world ruled by death be, for even death WILL come to he who fell, yes even him who forsook his proper dwelling place and deluded himself into thinking he could sit in the place of YAHWEH, yes he the first fallen one will taste death and be no more.

YES huwa let it be and so may he add to it!


We say part of His name everyday and it makes us feel happy not knowing why and yet if we only looked deeper at word structures we would see that Jesus Christ is being worshipped even by the unbeliever. Yes means to aquiesce and No means to deny.

YES'huwa

What are the real answers to questions that people in general do not want to ask?

What questions are never asked that SHOULD BE ASKED and ANSWERED?

Things to Do

Contracts!



In order for a contract to be lawful it must fulfill eight criteria and these eight elements are essential to the creation of a contract:
offer,
acceptance,
intention,
sufficient and equal consideration,
mental and lawful capacity to contract,
legality of purpose, genuine consent (knowingly, willingly, and voluntarily),
certainty of terms and conditions.

If the contract does not meet the four legal requirements, it is void. In order
to live free we must remain eternally vigilant of these invisible contracts and avoid the presumption of their
existence. The most significant presumptions are:
1. that you are a resident;
2. that you depend upon the government for benefits;
3. that you are not responsible for your behaviour; and
4. that you need protection - an attorney, a financial advisor, a doctor, a fiat currency, etc.
(Protect me from the protectors.)


False Presumptions regarding Statute Law!



All the above are false presumptions, the existence of which is perpetuated upon the belief that all land
and people are collateral for a debt which supports a fraudulent monetary system. All are based upon the
presumption that certificates of ‘birth’/‘title’, etc., in commercial law, waive our right to take responsibility
for our own affairs and own our bodies, plus life, liberty, and the property we accumulate through trading
our labour with others or creating from raw materials, if we don’t object to or arrange our affairs otherwise.

The duty of the police is not to protect you; it is to protect the Corporation and arrest code-breakers.

We are enemies of the State pursuant to Trading with the Enemy Act, 1933

We do not owe ‘public/ national debt’ - we can discharge fictitious public obligations.

Switzerland is ‘neutral’
because this is where the Bank of International Settlements is located.


Everything is COMMERCIAL CRIMES!


USA: 27 CFR 72.11- code of federal regulations defines Commercial Crimes as any of the following
types of crimes (Federal or State): “Offenses against the revenue laws; burglary; forgery; counterfeiting;
kidnapping; larceny; robbery; illegal sale or possession of deadly weapons; prostitution (including
soliciting, procuring, pandering, white slaving, keeping house of ill fame, and like offenses); extortion;
swindling and confidence games; and attempting to commit, conspiring to commit, or compounding any of
the foregoing crimes. Addiction to narcotic drugs and use of marijuana will be treated as if such were
commercial crime.”
Corporate Churches Tax Exemption!



As soon as it
incorporates it becomes a commercial entity and applies for and obtains an IRS 501(c)(3) status ruling
50
(remaining non-political and non controversial) and it retains its tax exempt status. Essentially, the state
then runs the church. If you think your pastor/ rabbi/ priest/ minister can speak his mind, think again. Yet,
churches are automatically exempt from Federal Income Tax. Contributions to churches are deductible by
donors so why would a church apply for gov’t stamp of approval when it was already free? A church that is
tax exempt is not a ‘tax exempt church’ but a religious organization which applies for corporate status
thereby going from ‘lawful assembly of private citizens’ to that of a ‘legal gathering of public subjects’.
Religion is for people who are frightened of going to Hell; Spiritualism is for those who have already
been there. - Gary Busey


Holding LEGAL TITLE to Property, inc' SELF!


If you have private, legal title to your property, there is no way it can be confiscated; your property includes your body. When they issue
warrants for bodies to come in and get vaccinated, remember they are referring to the bodies to which they have legal title and to which you have only equitable title. If you already have legal title to your body, you
can provide the papers proving this.


Speech on Bankruptcy to look up online!

You might be interested in Jim Trafficant’s speech on The Bankruptcy of the United States. Look it up - he tells the entire story, which is why he is in jail - but the feds won’t admit to that.


Remedy

There must be a remedy. Since we are operating in commerce, the remedy must be found in the Uniform Commercial Code. Remember:
1. signing the application for a licence is voluntary. You have the right to do these normal activities without such applications;
2. the applications are for ‘benefits’, ‘privileges’, and ‘opportunities’, which justify denial of your Creator-given rights with which you were born, but which were transferred upon birth registration;
3. we cannot acquire ‘true’ or ‘allodial title’ to any property purchased with such applications. We must ‘buy’ property in order to obtain ‘legal title’. This can be done only by exchanging your exemption for title. You can not own property by paying for it; 4. we cannot pay our debts at law; we can only discharge our debts in equity.


UCC

Filing a PPSA/UCC-1 is rather like the husband putting an ad in the local newspaper (usually the case and not the other way around) stating he is no longer responsible for his wife’s debts. This reminds me of
the husband who didn’t report his wife’s credit card as stolen because the thief was spending less than she had been spending. So, the filing is stating something similar: I will no longer be held as the surety for the
public debts of the Strawman because I am now creditor to, have a superior lien against, a security interest in, and control of, the Debtor Strawman. I had no trouble filing with the States of WA or NM, yet Alberta didn’t really want me to file a PPSA so they kept returning it along with the cheque I sent for filing fees until I woke up and remembered who I am. Since they are my servants, I realized that all I had to do is ‘Notice’ them that the document is registered with Canada Post. They are not required to file it if it didn’t suit their fancy, yet, my records show they received it and it has been recorded - rather the same as my car -
it is not ‘registered’; it is ‘recorded’. We are to Notice, not request, our public servants to do our bidding. Does the master of the house ask the servants to do something? No, he kindly and politely Notices them.
The Financing Statement is the one contract in the world which can not be broken. Since we have unlimited credit with the Fed we can access it through an account. Remember there is no money so it is not as if you can mosy over to the FRB/ BC and get cash. This is for the discharge of public debt only. We are intending to remove ourselves from needing cash so you don’t want to add to the problem by accumulating more. We now control the funds so that the Feds will move figures, entries, and digits for our benefit - no longer for their benefit. By properly filing a Financing Statement (UCC-1/PPSA) we can become the holder in due course of the Strawman. When we are charged, we can simply discharge the charge with our tax exemption. This is commerce - not law. None of the charade. We simply accept the charge for value and return it for discharge, settlement, and closure. Since the claim is pre-paid and our account at the Fed is exempt from levy, the alleged debt goes away - sort of - at least until we have something with which to pay it.



Advantages of filing a UCC / PPSA

Once we file a Financing Statement we can ‘discharge’ any public claim presented to us. If we ‘honour’ the claim by accepting it, we can discharge it. If we ‘dishonour’ the claim (by resisting, fighting, ignoring, arguing) we create a controversy which must be taken into court for resolution. ‘Accepting’ doesn’t mean acquiescing; it means we now control the offer. E.g.: If you have paid the bank £10,000 on a vehicle you think you own and you get behind in the payments, the bank can take the car away from you because you don’t own it. If you show on a Financing Statement that you have invested £10,000 into the vehicle and then got behind in payments, the bank would have to pay you the £10,000 before they take it.
The UCC in article 3, § 505 lists the rights of a party presented with a demand for payment, no matter who the alleged claimant, e.g.: IRS/CRA, or what the claim, e.g.: property tax/income tax. No one can ever show a liability on your part, only a demand for $$$. This is how I have so much fun with the alleged creditors. They continue to send me statements; I continue to demand an invoice, signed under their full, commercial liability and I’ll be happy to settle the accounting, but they never do! To do so would be committing fraud. How can I pay a bill if they won’t send me one?



The Powers-That-Be - the Global Elite

The top 1% of the world has the same combined income as the bottom 57%, and the disparity is growing.
At the top of the decision-making pyramid we have the Ruling Elite. They utilize psychopolitics deliberately to influence all nine steps in the decision-making process. They control every step by: 1. Creating events and predetermining their outcome; 2. Manufacturing event details and controlling the information dissemination infrastructure; 3. Biasing the alarm faculties of common people by the selected dissemination of controlled information;
4. Molding knowledge and belief systems through ‘education’;
5. intentionally providing the children of common people with inferior education through public instruction while Ruling Elite children attend premier schools and colleges; 6. Controlling the emotions of common people through social rhetoric and religious dogma; 7. Enacting rules and egulations that influence common peoples’ decisions based upon expected
rewards and feared punishments; 8. Intimidating the decisions of ordinary people by enforcing codes, rules, and regulations with coercion, the threat of force, torture, fines, or imprisonment; and, 9. Erecting surveillance networks which have the ability to monitor the behaviors and actions of groups and individuals.


Government


When the government fears the people, there is liberty. When the people fear the government, there is tyranny. - Thomas Jefferson
Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is ... the Fed (Federal Reserve System) has usurped the government. It controls everything here (congress) and it
controls all our foreign relations. It makes and breaks governments at will. - Louis McFadden, ex-Chairman of the House Committee on Banking and Currency
The course of history shows as a government grows, liberty decreases. - Thomas Jefferson In politics, nothing happens by accident. If it happens, it was planned that way. - FDR
Government big enough to supply everything you need is big enough to take away everything you have. - Thomas Jefferson
Government is at best a petulant servant and at worst a tyrannical master. - George Washington



NO Liability toward unsigned government contracts!

As none of us signed this contract it doesn’t apply to us. Our ‘charter rights’ are violated with impunity by the privately-owned Anglican Church legal system franchise known as the BAR Association via the Vatican and British Crown.


Communism

the 10 Planks of the Communist Manifesto
1. Abolition of private property.
2. Heavy progressive income tax.
3. Abolition of all rights to inheritance.
4. Confiscation of property of all emigrants and rebels.
5. A Central bank
6. Government control of Communications and Transportation
7. Government ownership of factories and agriculture.
8. Government control of labour.
9. Corporate farms, regional planning.
10. Free education for all children in government controlled schools


Democracy is indispensable to Socialism. - V. I. Lenin
Socialism leads to Communism. - Karl Marx

‘Necessity’ is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves. - Wm. Pitt, 1783

Everything the state says is a lie. - Nietzsche

Every government is run by liars and nothing they say should be believed. - I. F. Stone


Freedom

The average man does not want to be free. He simply wants to be safe. ~ H. L. Mencken
What we do to make ourselves safe eventually creates the situation for our demise. - R. Moss
One who trades freedom for security deserves neither. - Ben Franklin

The nature of psychological compulsion is such that those who act under constraint remain under the impression that they are acting on their own initiative. The victim of mind-manipulation does not know
that he is a victim. To him the walls of his prison are invisible, and he believes himself to be free. That he is not free is apparent only to other people. His servitude is strictly objective. - Aldous Huxley - Brave
New World Revisited, 1958

There is no one so hopelessly enslaved as he who falsely believes he is free. - Goethe
If a nation values anything more than freedom, it will lose its freedom; and the irony of it is that if it is comfort or money that it values more, it will lose that too. W. S. Maugham
It is dangerous to be right when the government is wrong. - Voltaire
The marvel of all history is the patience with which men and women submit to burdens unnecessarily laid upon them by their governments. - William H. Borah

We must actively challenge the publicly accepted scope of government authority. - unknown
The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government. - Thomas Jefferson

The ultimate authority ... resides in the people alone... - James Madison, Federalist Paper No. 46
I never would have agreed to the formulation of the Central Intelligence Agency back in '47 [1947], if I had known it would become the American Gestapo. -- Harry S. Truman (1961)
We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labours of the people under the pretense of caring for them, they will be happy. - Thomas Jefferson


If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks ... will deprive the people of all property until their children wake-up homeless
on the continent their fathers conquered.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. - Thomas Jefferson

Famous Quote by a ROTHSCHILD!


A few who can understand the system (check money and credits) will either be so interested in it’s profits, or so dependent on its favors, that there will be no opposition from that class, while on the other hand, the great body of the people mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear it's burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests. - Rothschild Brothers of London


WE DO NOT NEED, NOR WERE WE EVER MEANT, TO ‘WORK FOR A LIVING’!


The government floated a bond against our future earnings by using our birth registrations as the collateral for our ‘promise to pay’. Income tax is just their having ‘educated’ you to pay the interest on the loan YOU lent THEM. When we access our Direct Treasury Accounts, those held at the BC/ FRB under
our SINs/ SSNs, we will no longer ‘have to’ work. Meanwhile, we will continue to:
1. slave-labour for entities which do not exist except for the purpose of profit,
2. do something other than what we were designed to do, and
3. believe that we (extensions of our Creator) are worthless enough to have to pay for our existence.


We are an extension of, not separate from, our Creator.


WHAT REALLY HAPPENED / WHAT TO DO
KNOW THYSELF - REMEMBER WHO YOU ARE
The ‘System’

The Matrix is a system, Neo. That system is our enemy, and when you’re inside, and look around, what do you see? Businessmen, Teachers, Lawyers, Carpenters, the very minds of the people we are trying to save. But until we do, these people are still a part of that system and that makes them our enemy.
You have to understand: most of these people are not ready to be unplugged, and many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it. - Morpheus - The Matrix


The only one which I found to be significant and worth remembering was Miranda vs. Arizona, wherein we are told, “... Anything you say can and will be used against you in a court of law.” (read EVERY thing you say WILL be used AGAINST you.) No ‘maybe’ here. This particular supreme court ruling stuck with me as being one of the most important things I could ever learn, and ... I was accurate.
This is the entire purpose of learning to say nothing - learning NOT to contract unwittingly.


Those in Medicine don’t know ‘health’
Those in Schooling don’t know ‘education’
Those in Media don’t know the ‘news’ (what's really going on in the world)
Those in Religion don’t know ‘spirituality’
Those in Finance don’t know ‘commerce’
Those in Legal don’t know ‘law’


Life is quite interesting in parts but no substitute for the real thing. - Douglas Adams

What if God intended to do something and then wondered whether it would work or not? - Dennis Krum.

ZAC you need to get a CREDIT CARD!

I do not owe anything if I borrow credit from a credit card because It is all EFT (Electronic Funds Transfer). There has been no moving of substance...ie; gold or silver (supposedly what the money is backed by).

I will work for food not money as money does not exist, it is only an illusion to make the physical mind think that something worthwhile is owned. On the other hand, food is bought with illusion and hence substance is worth more than illusion.


How to bring the system crashing down!

Encourage EVERYONE to get a credit card and use it to its limit. The system will fail under the weight of Trying to change those who govern us is a waste of time and energy. The gov’t doesn’t exist; it is a fictitious entity, so the only entities attempting to govern us are simply living souls/ private entities just as we are. They are not the gov’t (as in, “I’m from the gov’t and I’m here to help you.”) If they personally have no claim against us, they have no clout. They must have a claim in order to exact performance from us. We can change either our minds about how we
interpret what they’re doing and not doing, or we can change our status - ideally both, so we are no longer at the effect of those in the business of confiscating our funds. Fortunately, there are ways to do this.



out of love, never mind for what we are not wanting to do.
I know you think you receive something for your hours of labour. You do not. You receive a piece of paper with numbers on it, the date, a ‘dollar’ figure, and a signature. So far, you have received nothing of
value for your labour. Now, take it over to the bank and sign your name on the back, commonly called endorsement, and lo and behold, you receive ‘money’. Nice try. There is no money. What you received are other pieces of paper with more numbers on them. Can you use them? Sort of. If you are smart, you’ll get rid of them as fast as possible, for several reasons: 1. They have no intrinsic value; notes cost pennies to make, no matter what their denomination. It costs the Feds as little to print a $500 note as a $5 note, so your dollar is barely worth the paper its printed on.
2. You are holding debt notes; debt notes carry liability in the form of interest. You will get stuck with the interest on this debt if you don’t trade them for something of value - asap; 3. As long as they are in your possession you have yet to be compensated for your labour. Since
they will do you no good until you trade them, hanging onto them will not serve you.

I am reminded of a Native poem:

Only after the last tree has been cut down
Only after the last river has been poisoned
Only after the last fish has been caught
Only then will you find that money cannot be eaten.


Attachment to anything outside ourselves depletes our peace of mind. Can we ever detach from £££ ?
Since £££ and its use represent the belief that we are separate and in competition with each other, if we were to change our minds about this, then £££ would cease to exist. We simply wouldn’t need it.



The name of their game is to confiscate as much of our property as possible. The feds become more frantic as each day passes as the IMF tightens the screws on them. The fact that interest rates are at an alltime low ought to give one pause. Think about it: low interest rates are prompting us to buy property.
When we are all ‘indebted’ they will hike property taxes and get all ‘their’ property back - unless we know how to stop paying property tax, which is simply a case of declining to do so. Get onto it. I have written my Premier, the Finance Minister, the provincial tax advisor and none has been able to provide me with any law requiring me to pay property taxes.


.... I was seized and put into jail because, as I have elsewhere related, I did not pay a tax to, or recognize the authority of, the ‘state’ which buys and sells men, women, and children like cattle at the door of its senate house. I had gone down to the woods for other purposes but wherever a man goes men will pursue and paw him with their dirty institutions and if they can, constrain him to belong to their desperate odd-fellow society. It is true I might have resisted forcibly with more or less effect, might have run amok against society, but I preferred that society should run amok against me, it being the desperate party. - Henry David Thoreau 1854

There will always be men who will try to talk us out of our freedom. - Rice McLeod


The property will be lost - all because we have been deliberately misled into believing that it was ours and we failed to take the necessary steps to protect it, namely being sure property is in our true lawful names, and discharging the alleged debt which they have made up as a means to onfiscate it. The entire process is their means to take what we think is ours for their ultimate purpose of control. This does not need to happen. It will be via our neglect. All they want is to have their debts ischarged. Only we can do this for them. As long as we ‘pay for’ what we believe to be our debts with debt instruments, their debt becomes only more massive. Already they are saying it is impossible to ‘pay back’; well, of course it is impossible to ‘pay’ because there is nothing with which to pay. It is, however, so simple to discharge; it can be done in an instant.
You might well ask, “Well, if they want us to discharge their debt for them, why don’t they just say so and we’ll be only too happy to comply; then we’d all be happy. Why the subterfuge?” You forget that they want the debt for the sole purpose of confiscating our property for their ultimate control. The fact that we think we laboured for it is more of the same propaganda. All property will revert back to a belligerent foreign corporation, the IMF, and where will we be after we all lose our houses and cars? Dare I say detention camps? Where else will we have to go? Properties are being foreclosed by the thousands every day. Do you still believe it is because we “lived beyond our means”? We never had to pay for any of those things we believed we ‘bought’ anyway; they were already ours. Many of us are filing the correct papers to ensure that what we believe we ‘paid for’ does indeed remain ours. This must be done. If you have not actively recorded your property (including your children and grandchildren) in your true title/name, you will lose your property (and your descendants) ; it is just a question of time. None of this has to occur. We have two ways out and I suggest you begin now to implement them.
The first is to establish your property as your own and the second which is vastly more important is to practise remembering that none of this matters. What does matter is our peace of mind. We must do that
which will grant us the greatest peace and the greatest joy. We must forgive those for what we think they did to us, including the International Banksters (this is blatantly the one I’m working on). We must grant our souls some freedom by knowing that house or no house, we can live in joy.

Thoughts are the energy which creates ... everything. Because we have senses we sense that things are not as we would like them and we
strive to change the circumstances rather than change our thoughts.

Psychotherapists make ‘real’ a traumatic incident by lecturing a client on how to ‘cope’, rather than acknowledging the client’s anxiety and allowing for its release. Their purpose is to make up plans to handle

various situations so the client gets stuck with ‘solutions to problems’ as opposed to being ‘empowered to create’ a perception whereby everyone wins. Too much time and talk and hence, cost is wasted by the
learning of this worthless information when all that’s necessary is to be vigilant, see any and all ostensibly negative situations as the same - the opportunity to heal - and heal them in the NOW - because there is no
time. Rather than many strategies which only reinforce the belief that what is happening is real, there is only one creative answer: acknowledge it, release it and forgive it. Simple, but not easy.


Commerce itself is only a manifestation of what is going on in our minds. Everything is only a manifestation of the energy from our thoughts. We believe we are separate from each other and we believe we are separate from our Creator. The PTB are only reflecting back our beliefs. They are literally ‘laughing all the way to the bank’. Yet they are our saviours because they are teaching us, albeit brutally, in my opinion, that we are to honour our contracts, our word is our bond, and not to make promises we can’t keep.
If there is the slightest doubt in our minds about what we are entering into, we have the authority to reject any offer of contract. This applies to every area of our lives – commonly called, Learning to Say No. If we
dishonour ourselves by contracting when we really don’t want to, there are serious consequences – the main one being our integrity and ethics are compromised. Since this is paramount in our spiritual growth, I say the
feds are just reminding us, however harsh this generally is. If we can regard them in this manner, we can use them to improve our lives by setting our intentions higher.