Consumer Credit Act 1974

[F1Charges for indefinite licencesU.K.

28ACharges to be paid by licensees etc. before end of payment periodsU.K.

(1)The licensee under a standard licence which has effect indefinitely shall, before the end of each payment period of his, pay the OFT a charge towards the costs of carrying out its functions under this Act.

(2)The original applicant for a group licence which has effect indefinitely shall, before the end of each payment period of his, pay the OFT such a charge.

(3)The amount of the charge payable by a person under subsection (1) or (2) before the end of a payment period shall be determined in accordance with provision which—

(a)is made by the OFT by general notice; and

(b)is current on such day as may be determined in accordance with provision made by regulations.

(4)The provision that may be made by the OFT under subsection (3)(a) includes—

(a)different provision in relation to persons of different descriptions (including persons whose payment periods end at different times);

(b)provision for no charge at all to be payable by persons of specified descriptions.

(5)The approval of the Secretary of State and the Treasury is required for a general notice under subsection (3)(a).

(6)For the purposes of this section a person's payment periods are to be determined in accordance with provision made by regulations.

[F228BExtension of period to pay charge under s. 28AU.K.

(1)A person who is required under section 28A to pay a charge before the end of a period may apply once to the OFT for that period to be extended.

(2)The application shall be made before such day as may be determined in accordance with provision made by the OFT by general notice.

(3)If the OFT is satisfied that there is a good reason—

(a)why the applicant has not paid that charge prior to his making of the application, and

(b)why he cannot pay that charge before the end of that period,

it may, if it thinks fit, by notice to him extend that period by such time as it thinks fit having regard to that reason.

(4)The power of the OFT under this section to extend a period in relation to a charge—

(a)includes the power to extend the period in relation to a part of the charge only;

(b)may be exercised even though the period has ended.]

[F328CFailure to pay charge under s. 28AU.K.

(1)This section applies if a person (the ‘defaulter’) fails to pay a charge—

(a)before the end of a period (the ‘payment period’) as required under section 28A; or

(b)where the payment period is extended under section 28B, before the end of the payment period as extended (subject to subsection (2)).

(2)Where the payment period is extended under section 28B in relation to a part of the charge only, this section applies if the defaulter fails—

(a)to pay so much of the charge as is not covered by the extension before the end of the payment period disregarding the extension; or

(b)to pay so much of the charge as is covered by the extension before the end of the payment period as extended.

(3)Subject to subsection (4), if the charge is a charge under section 28A(1), the defaulter's licence terminates.

(4)If the defaulter has applied to the OFT under section 28B for the payment period to be extended and that application has not been determined—

(a)his licence shall not terminate before the application has been determined and the OFT has notified him of the determination; and

(b)if the OFT extends the payment period on that application, this section shall have effect accordingly.

(5)If the charge is a charge under section 28A(2), the charge shall be recoverable by the OFT.]]