HL Deb 25 July 1974 vol 353 cc1894-6

[Nos. 79 to 92]

Clause 76, page 40, line 5, leave out 'of the debtor or hirer' and insert 'conferred on the debtor or hirer by the agreement'.

Clause 76, page 40,line 8, at end insert—

'(1A) Subsection (1) applies only where—

(a) a period for the duration of the agreement specified in the agreement, and

(b) that period has not ended when the creditor or owner does an act mentioned in subsection (1),

but so applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified'.

Clause 76, page 40,line 12, at end insert 'and taking such steps as may be necessary to make the restriction or deferment effective'.

Clause 78, page 42, line 8, leave out 'not later than one month' and insert 'within the prescribed period'.

Clause 82, page 43, line 34, leave out from beginning to end of line 11 on page 44 and insert—

'(2) Where an agreement (a "modifying agreement") varies or supplements an earlier agreement, the modifying agreement shall for the purposes of this Act be treated as

(a) revoking the earlier agreement, and

(b) containing provisions reproducing the combined effect of the two agreements,

and obligations outstanding in relation to the earlier agreement shall accordingly be treated as outstanding instead in relation to the modifying agreement.

(3) If the earlier agreement is a regulated agreement but (apart from this subsection) the modifying agreement is not then, unless the modifying agreement is for running account credit, it shall be treated as a regulated agreement.

(4) If the earlier agreement is a regulated agreement for running-account credit, and by the modifying agreement the creditor allows the credit limit to be exceeded but intends the excess to be merely temporary, Part V (except section 56) shall not apply to the modifying agreement.

(5) If—

(a) the earlier agreement is a cancellable agreement, and

(b) the modifying agreement is made within the period applicable under section 68 to the earlier agreement,

then, whether or not the modifying agreement would, apart from this subsection, be a cancellable agreement, it shall be treated as a cancellable agreement in respect of which a notice may be served under section 68 not later than the end of the period applicable under that section to the earlier agreement.

(6) Except under subsection (5), a modifying agreement shall not be treated as a cancellable agreement.

(7) This section does not apply to a noncommercial agreement'.

Clause 83, page 44, line 17, leave out 'a cheque' and insert' an instrument to which section 4 of the Cheques Act 1957 applies'.

Clause 84, page 45, line 5, at end insert:

'(8) Where two or more credit tokens are given under one credit token agreement, the preceding provisions of this section apply to each credit-token separately'.

Clause 85, page 45, line 17, leave out 'fully-secured'.

Clause 86, page 45, line 20, at end insert 'if at the death the agreement is fully secured'.

Clause 86, page 45,line 21, leave out from '(2)' to 'is' in in line 22 and insert 'If at the death of the debtor or hirer a regulated agreement is only partly secured or is unsecured, the creditor or owner'.

Clause 86, page 45,line 24, at end insert—(2A) This section applies in relation to the termination of an agreement only where—

(a) a period for its duration is specified in the agreement, and

(b) that period has not ended when the creditor or owner purports to terminate the agreement,

but to applies notwithstanding that, under the agreement, any party is entitled to terminate it before the end of the period so specified.

Clause 86, page 45,line 26, leave out 'terminated by the debtor's death' and insert 'restricted or deferred and taking such steps as may be necessary to make the restriction or deferment effective'.

Clause 86, page 45,line 38, leave out 'taken out for the purpose'

Clause 86, page 45,line 38, leave out 'generally, but in fact exercised' and insert 'at will and exercised at any time'.

LORD JACQUES

My Lords, Part VI of the Bill is concerned with matters arising during the currency of a credit or hire agreement. There are quite a number of substantive Amendments and I shall have to be selective in order to save the time of the House.

First of all, Clause 76(1)(c) is amended to make it quite clear that the requirement under this clause to give seven days' notice before the creditor takes certain action does not affect the banks' right in the interim to set up or amalgamate their customer's debt and credit accounts so as to prevent further credit from being taken. Secondly, Clause 76(4) is amended to make clear that during the period of notice under this clause the creditor can take any steps necessary to prevent the hirer from drawing further credit. This will, in particular, ensure that credit card companies can withdraw their cards from the debtor immediately. Thirdly, in Clause 84 it is now made clear that the debtor's liability of up to £30 for misuse of a credit token can apply to each credit token that he accepts. Finally, there is an Amendment which I am sure that this House will greatly welcome. The deletion of the words "taken out for the purpose" in Clause 86(4) will allow creditors or owners to have the proceeds of any assurance policy on the life of the debtor which secures the agreement, whether it was taken out for that purpose or not. This meets a point which was raised in this House.

My Lords, I beg to move that this House doth agree with the Commons in their Amendments Nos. 79 to 92.

Moved, That this House doth agree with the Commons in the said Amendments.—(Lord Jacques.)

On Question, Motion agreed to.