HL Deb 24 October 1990 vol 522 c1455

145 Before Clause 82, insert the following clause:—

Tying-in arrangements in connection with residential property loans

'.—(1) In this section "residential property loan" means any loan which—

  1. (a) is secured on land in the United Kingdom; and
  2. (b) is made to an individual in respect of the acquisition of land which is for his residential use or the residential use of a dependant of his.

(2) No person ("the lender") shall enter into an agreement with another ("the borrower") for the provision to the borrower by the lender of a residential property loan together with one or more controlled services, unless the conditions mentioned in subsection (3) are complied with before the agreement is entered into.

(3) The conditions are that the lender—

  1. (a) informs the borrower by notice that the residential property loan, and each controlled service to which the proposed agreement relates, are separate services;
  2. (b) informs the borrower by notice whether the terms and conditions of the proposed residential property loan will, if the loan is made in accordance with the proposed agreement, be capable of subsequently being varied by the lender;
  3. (c) provides the borrower with a statement of—
    1. (i) the price which will be payable by the borrower for each of the controlled services if they are all provided in accordance with the terms of the proposed agreement; and
    2. (ii) the extent to which (if at all) the terms and conditions of the proposed residential property loan would differ if it were to be provided by the lender without the controlled services to which the proposed agreement relates being provided by the lender; and
  4. (d) informs the borrower by notice that, if the borrower declines to take from the lender any of the controlled services to which the proposed agreement relates, the lender will not on that account refuse to provide the proposed loan.

(4) Where a person advertises, or in any other manner promotes—

  1. (a) the provision of any controlled services which, in the course of his business, he offers to provide in conjunction with the making by him of residential property loans; or
  2. (b) the making by him, in the course of his business, of any arrangements for the provision of any controlled services in conjunction with the making by him or any other person of residential property loans,

The Lord Chancellor

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 145.

Moved, That the House do agree with the Commons in their Amendment No. 145.—(The Lord Chancellor.)