Clause 12 - Notice of default sums
Consumer Credit Bill
2:15 pm
Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
I shall do my best to respond, but if I do not, the hon. Gentleman will take whatever action he believes to be appropriate.
If default sums are excessive, they may be subject to the common law on penalties. That relates to existing legislation. The unfair terms regulations provide that default sums cannot be excessive, and that the OFT can take action under the regulations. That provides some clarity, but I still believe that there will be differences of opinion between the hon. Gentleman and me about where we are heading.
Question put and agreed to.
Clause 12 ordered to stand part of the Bill.