Clause 3 - Exemption relating to high net worth debtors and hirers
Consumer Credit Bill
8:55 am
Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
May I say at the outset that I understand where the hon. Gentleman is coming from. However, the amendments may be misconceived.
It is important is that the declaration forms part of the agreement at the time when it is made. Amendment No. 1 would make the declaration separate to the agreement. It could mean that consumers were provided with the required declaration at a different time, and that they may not necessarily have to sign it at the same time. That could create confusion.
The clause does not require lenders to prepare a separate collection of agreements specifically for high net worth debtors. Lenders are free to prepare agreements in the manner that they find most convenient so long as they comply with the relevant legal requirements. It is important that the declaration is made at the same time that the agreement is made.
Amendment No. 2 is in a similar vein, It proceeds on an incorrect assumption and seems misconceived. I hope that that theme is not adopted throughout the Committee stage.