Consumer Credit Act 2006

3Exemption relating to high net worth debtors and hirersU.K.

After section 16 of the 1974 Act insert—

“16AExemption relating to high net worth debtors and hirers

(1)The Secretary of State may by order provide that this Act shall not regulate a consumer credit agreement or a consumer hire agreement where—

(a)the debtor or hirer is a natural person;

(b)the agreement includes a declaration made by him to the effect that he agrees to forgo the protection and remedies that would be available to him under this Act if the agreement were a regulated agreement;

(c)a statement of high net worth has been made in relation to him; and

(d)that statement is current in relation to the agreement and a copy of it was provided to the creditor or owner before the agreement was made.

(2)For the purposes of this section a statement of high net worth is a statement to the effect that, in the opinion of the person making it, the natural person in relation to whom it is made—

(a)received during the previous financial year income of a specified description totalling an amount of not less than the specified amount; or

(b)had throughout that year net assets of a specified description with a total value of not less than the specified value.

(3)Such a statement—

(a)may not be made by the person in relation to whom it is made;

(b)must be made by a person of a specified description; and

(c)is current in relation to an agreement if it was made during the period of one year ending with the day on which the agreement is made.

(4)An order under this section may make provision about—

(a)how amounts of income and values of net assets are to be determined for the purposes of subsection (2)(a) and (b);

(b)the form, content and signing of—

(i)statements of high net worth;

(ii)declarations for the purposes of subsection (1)(b).

(5)Where an agreement has two or more debtors or hirers, for the purposes of paragraph (c) of subsection (1) a separate statement of high net worth must have been made in relation to each of them; and paragraph (d) of that subsection shall have effect accordingly.

(6)In this section—

• ‘previous financial year’ means, in relation to a statement of high net worth, the financial year immediately preceding the financial year during which the statement is made;

• ‘specified’ means specified in an order under this section.

(7)In subsection (6) ‘financial year’ means a period of one year ending with 31st March.

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