Clause 18 - Definition of ''default sum''
Consumer Credit Bill
12:00 pm
Mr Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations, Competition and Consumers), Department of Trade and Industry; Bradford South, Labour)
It may help the Committee to look at the definition in clause 18 of the default sum. Clause 18 defines the term ''default sum''. The term is used in clause 6, relating to annual statements; clauses 9 and 10, which deal with notices of sums of arrears; clause 11, which deals with the failure to give a notice of a sum in arrears; clause 12, which deals with notice of default sums; and clause 13, which deals with interest on default sums.
The term ''default sum'' means the amount payable, other than the interest, by a debtor or hirer in connection with a breach of the agreement, such as a charge imposed for late payment. In such cases, the terms and conditions of the agreement may require that a debtor or hirer should pay all or part of the outstanding credit before it would normally be due. This is often called an accelerated payment clause. Such payments are not default sums.
Question put and agreed to.
Clause 18 ordered to stand part of the Bill.