1.  These Regulations may be cited as the Consumer Credit (Termination of Licences) (Amendment) Regulations 1981 and shall come into operation on 1st June 1981.

2.  The Consumer Credit (Termination of Licences) Regulations 1976 are hereby amended as follows:—

(a)in Regulation 1(2) for the definition of “period of deferment” there shall be substituted—

““period of deferment” means the period specified in Regulation 3(1) or (2), as the case may be”

(b)for Regulation 3 there shall be substituted the following Regulation:—

  

“3.—(1) Except as provided in paragraph (2) below, the termination of a licence by section 37(1) of the Act or under regulation 2 of these Regulations shall be deferred for a period of twelve months beginning with the date of the terminating event.

(2) The termination of a licence on the occurrence of the event specified in paragraph 11A of the Schedule shall be deferred for a period of one month beginning with the date of that event.

(3) The period referred to in paragraph (1) or (2) above, as the case may be, is hereinafter referred to as the “period of deferment”.”;

  

(c)in Regulation 6 after “person” there shall be inserted “other than the licensee”;

(d)after Regulation 6 there shall be added the following Regulation:—

  

“7.  Where any notice to be served on the Director under paragraph 11A of the Schedule is sent to him by post, the service shall be deemed to be effected at the time at which the notice is delivered by post at the proper address of the Director.”;

  

and

(e)in Part 1 of the Schedule, there shall be added after paragraph 11 the following paragraph:—

EXPLANATORY NOTE

Section 37(1) of the Consumer Credit Act 1974 and the Consumer Credit (Termination of Licences) Regulations 1976 provide for the termination of a consumer credit licence upon the occurrence of certain specified events.

These Regulations amend the above Regulations and provide for an additional terminating event. They make it clear that a licence can be voluntarily relinquished by the licensee and can terminate upon receipt by the Director General of Fair Trading of a notice in writing. The Regulations provide that such termination of the licence will be deferred for one month after the terminating event.