Consumer Credit (Advertisements) Regulations 1989
| Jurisdiction | UK Non-devolved |
| Citation | SI 1989/1125 |
1989No. 1125
CONSUMER CREDIT
The Consumer Credit (Advertisements) Regulations 1989
5thJuly1989
6thJuly1989
1stFebruary1990
The Secretary of State, in exercise of the powers conferred on him by sections 44, 151(1), 182(2) and 189(1) of the Consumer Credit Act 1974 ( a) and of all other powers enabling him in that behalf, hereby makes the following Regulations:-
PART I
PRELIMINARY
Citation, commencement, interpretation and revocation
1.-(1) These Regulations may be cited as the Consumer Credit (Advertisements) Regulations 1989 and shall come into force on 1st February 1990.
(2) In these Regulations, unless the context otherwise requires:-
"the Act" means the Consumer Credit Act 1974;
"advance payment" includes any deposit but does not include a repayment of credit or any insurance premium or any amount entering into the total charge for credit;
"the APR" means the annual percentage rate of charge for credit determined in accordance with the Total Charge for Credit Regulations and Schedule 3 to these Regulations;
"cash price" in relation to any goods, services, land or other things means the price or charge at which the goods, services, land or other things may be purchased by, or supplied to, persons for cash, account being taken of any discount generally available from the dealer or supplier in question;
"cash purchaser" means, in relation to any advertisement, a person who, for a money consideration-
(a) 1974 c.39; section 189(1) defines "prescribed".
(a) acquires goods, land or other things; or(b) is provided with services,under a transaction which is not financed by credit;
"Consumer credit tables" means tables contained in Parts 1 to 15 of "Consumer credit tables" published in 1977 by Her Majesty's Stationery Office as modified by Correction Slips so published in December 1978 (being tables calculated in accordance with the principles set out in the Total Charge for Credit Regulations);
"contract of insurance" means a contract of insurance to which the Insurance Companies Act 1982 ( a) applies;
"credit advertisement" means an advertisement to which Part IV of the Act applies by virtue of it falling within section 43(1)(a) or which falls within section 151(1) of the Act in so far as section 44 is applied to such an advertisement;
"current account" means an account under which the customer may, by means of cheques or similar orders payable to himself or to any other person or by any other means, obtain or have the use of money held or made available by the person with whom the account is kept and which records alterations in the financial relationship between the said person and the customer;
"dealer" means, in relation to a hire-purchase, credit sale or conditional sale agreement under which he is not the creditor, a person who sells or proposes to sell goods, land or other things to the creditor before they form the subject matter of any such agreement and, in relation to any other agreement, means a supplier or his agent;
"hire advertisement" means an advertisement to which Part IV of the Act applies by virtue of it falling within section 43(1)(b) or which falls within section 151(1) of the Act in so far as section 44 is applied to such an advertisement;
"hire payment" means any payment to be made by a person in relation to any period in consideration of the bailment to him of goods, other than an advance payment;
"identified dealer" means, in relation to an advertisement-
(a) a dealer who is named in the advertisement or is identified in it by reference to a business connection he has with the advertiser; or(b) a dealer upon whose premises the advertisement is published;"premises" includes any place, stall, vehicle, vessel, aircraft or hovercraft at which a person is carrying on any business (whether on a permanent or temporary basis);
"supplier" has the meaning assigned to it by section 189(1) of the Act, except that it does not include, in relation to a hire-purchase, credit sale or conditional sale agreement, a creditor to whom goods, land or other things are sold or proposed to be sold by a dealer before becoming the subject matter of such an agreement;
"total charge for credit" shall be determined in accordance with the Total Charge for Credit Regulations and Schedule 3 to these Regulations; and
"the Total Charge for Credit Regulations" means the Consumer Credit (Total Charge for Credit) Regulations 1980 ( b).
(3) Any reference in these Regulations to bailment is in Scotland a reference to hiring.
(4) In these Regulations, references to repayment of credit are references to repayment of credit with or without any other amount.
(5) In these Regulations, any reference to the name of any person is-
(a) in the case of any person covered by a standard licence, a reference to any name of his specified in the licence; and(b) in the case of any other person, a reference to any name under which he carries on business.(6) Where any expression is used in these Regulations and in the Act, for the purposes of these Regulations that expression shall be construed as if in the Act (except section 8) references to consumer credit agreements and to regulated agreements (being consumer credit agreements) included references to personal credit agreements.
(7) The Regulations specified in Schedule 4 to these Regulations are hereby revoked to the extent specified in the third column of that Schedule.
(a) 1982 c.50.
(b) S.I. 1980/51, amended by S.I. 1985/1192 and 1989/596.
PART II
FORM AND CONTENT OF ADVERTISEMENTS
General rules
2.-(1) The person who causes any credit advertisement to be published shall ensure that, subject to the following provisions of these Regulations, every such advertisement is:-
(a) a simple credit advertisement that is to say a credit advertisement containing only the information set out in paragraphs 1 to 5 of Part I of Schedule 1 to these Regulations in whole or in part and any other information referred to in paragraph 6;(b) an intermediate credit advertisement that is to say a credit advertisement containing only the information set out in paragraphs 1 to 9 of Part II ofSchedule 1 and no other information except as referred to in paragraph 10;(c) a full credit advertisement that is to say a credit advertisement containing, subject to sub-paragraph (d) below, at least the information set out in Part III of Schedule 1; or(d) a full credit advertisement which invites individuals (being individuals who, at the date the advertisement is published, are debtors under agreements made with the advertiser) to agree to a specified variation of those agreements, containing-(i) the name of the advertiser and a postal address of his and the information within Part III of Schedule 1 as varied in relation to those agreements if the invitation is accepted by the debtor; and(ii) the information, other than the name and a postal address of the advertiser, specified in that Part which the advertisement does not indicate will remain unaltered if the invitation is accepted.(2) The person who causes any hire advertisement to be published shall ensure that, subject to the following provisions of these Regulations, every such advertisement is-
(a) a simple hire advertisement that is to say a hire advertisement containing only the information set out in paragraphs 1 to 5 of Part I of Schedule 2 to these Regulations in whole or in part and any other information referred to in paragraph 6;(b) an intermediate hire advertisement that is to say a hire advertisement containing only the information set out in paragraphs 1 to 7 of Part II of Schedule 2 and no other information except as referred to in paragraph 8;(c) a full hire advertisement that is to say a hire advertisement containing, subject to sub-paragraph (d) below, at least the information set out in Part III ofSchedule 2, but not containing the expression "no deposit" or any expression to the like effect, except where no advance payments are to be made by the hirer; or(d) a full hire advertisement which invites individuals (being individuals who, at the date the advertisement is published, are hirers under agreements made with the advertiser) to agree to a specified variation of these agreements, containing:-(i) the name of the advertiser and a postal address of his and the information within Part III of Schedule 2 as varied in relation to the hire facility if the invitation is accepted by the hirer; and(ii) the information, other than a name and postal address of the advertiser, specified in that Part which the advertisement does not indicate will remain unaltered if the invitation is accepted;but not containing the expression "no deposit" or any expression to the like effect, except where no advance payments are to be made by the hirer.
(3) In the case of an advertisement relating to a debtor-creditor agreement enabling the debtor to overdraw on a current account under which the creditor is the Bank of England, an institution authorised under the Banking Act 1987 ( a), the Post Office for the purposes of a transaction entered into in the ordinary course of that part of the business of the Post Office which consists of the provision of banking services or a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986 ( b), for any reference in Schedule 1 to these Regulations to the APR there may be substituted a reference to the statement of-
(a) a rate, expressed to be a rate of interest, being a rate determined as the rate of the total charge for credit calculated on the assumption that only interest is included in the total charge for credit; and(b) the nature and amount of any other charge included in the total charge for credit.(4) Paragraphs 6 and 7 of Part II, and paragraph 6 of Part III, of Schedule 1 to these Regulations do not apply to an advertisement in so far as it relates to fixed-sum credit to be provided under a debtor-creditor-supplier agreement, where the cash price of the...
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