Consumer Credit Act 1974

[F116BExemption relating to businessesU.K.

(1)This Act does not regulate—

(a)a consumer credit agreement by which the creditor provides the debtor with credit exceeding £25,000, or

(b)a consumer hire agreement that requires the hirer to make payments exceeding £25,000,

if the agreement is entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

[F2(1A)This Act does not regulate a consumer credit agreement if—

(a)the credit provided by the creditor to the debtor by the agreement does not exceed £25,000,

(b)the agreement is entered into by the debtor wholly for the purposes of a business carried on, or intended to be carried on, by the debtor, and

(c)the agreement is a green deal plan (within the meaning of section 1 of the Energy Act 2011).]

(2)If an agreement[F3 falling within subsection (1) ] includes a declaration made by the debtor or hirer to the effect that the agreement is entered into by him wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him, the agreement shall be presumed to have been entered into by him wholly or predominantly for such purposes.

(3)But that presumption does not apply if, when the agreement is entered into—

(a)the creditor or owner, or

(b)any person who has acted on his behalf in connection with the entering into of the agreement,

knows, or has reasonable cause to suspect, that the agreement is not entered into by the debtor or hirer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him.

[F4(3A)Subsections (2) and (3) also apply in relation to an agreement falling within subsection (1A) but with the omission of the words “or predominantly]

(4)The Secretary of State may by order make provision about the form, content and signing of declarations for the purposes of subsection (2).

(5)Where an agreement has two or more creditors or owners, in subsection (3) references to the creditor or owner are references to any one or more of them.

(6)Nothing in this section affects the application of sections 140A to 140C.]