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 10 June 2008
Department for Innovation, Universities and Skills (DIUS)
 
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Timetable

The calendar below sets out the working timetable for implementation of the new Act. 

The coming-into-force dates were determined in accordance with our key principles for implementation. In particular, the dates take account of the time needed by Government and business to prepare for the changes, reflect a balance of stakeholder views and, where relevant, adhere to Government's Common Commencement Dates (CCDs).

 DateProvision(s) coming into force (relevant section of the 2006 Act given in brackets)

 June 2006

Disapplication of section 101 of the 1974 Act (section 63) - smoothes process in relation to disapplying right to terminate hire agreements, when in hirer’s interest

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Miscellaneous/technical provisions (sections 65-69)

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Enabling powers for Statutory Instruments (SIs) to be made later on, and other ‘supporting’ provisions

 1 October 2006 (CCD)

Extension of period for consumers to respond to default notices, from 7 to 14 days (section 14(1))

6 April 2007 (CCD)

Change to definition of an individual (section 1) – excludes from regulation new lending to partnerships of more than 3 people

"

Abolition of automatic enforceability (section 15) – gives Courts discretion over whether a credit agreement is enforceable (i.e. this is no longer automatic)

 "

Unfair relationships (sections 19-22) for new agreements - replaces existing ‘extortionate credit’ test with a new, broader test based on the principle of unfairness. (Note: there will be a one-year transitional period (i.e. until 6 April 2008) before the unfair relationships test applies to existing agreements)

 "

Establishment of alternative dispute resolution scheme for consumer credit disputes, to be provided by the Financial Ombudsman Service (sections 59-61, Schedule 2) – adds a new Consumer Credit Jurisdiction to FOS’ existing mandate

 6 April 2008 (CCD)

Removal of financial limit (section 2) – brings all new consumer credit agreements, regardless of value, into regulation

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‘High net worth’ and business exemptions (sections 3-4) – enables very wealthy individuals to opt out of regulation, and exempts lending for business purposes over £25,000

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Reform of consumer credit licensing regime and enhancement of Office of Fair Trading powers (sections 23, 26-54, 62, 64)

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Establishment of Consumer Credit Appeals Tribunal (sections 55-58, Schedule 1) – replaces the existing system of appeals to the Secretary of State

1 October 2008 (CCD)

Post-contract transparency requirements (sections 6-14, 16-18) – require lenders to provide consumers with regular information about the state of their credit accounts e.g. statements about fixed-sum credit agreements, notices of arrears and notices of default sums incurred. (Note: Includes section 13, requiring that interest charged on default sums may only be simple, not compound interest)

 "

New categories of business – debt administration and credit information services (sections 24-25)

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