Lord Offord of Garvel:

Moved by Lord Offord of Garvel

138: Clause 274, page 182, line 25, leave out “subscription”Member's explanatory statementThis amendment clarifies that the Chapter does not apply in relation to any contract that was entered into before clause 253 comes into force. This is to ensure that it does not apply to a contract that was not a subscription contract when it was entered into before that clause comes into force (e.g. because it was an excluded contract) but then becomes a subscription contract after that clause comes into force.

139: Clause 274, page 182, line 26, at end insert—“(4) Subsections (5) and (6) apply where—(a) a trader enters into a contract that is an excluded contract,(b) but for it being an excluded contract, the contract would have been a subscription contract, and(c) on a later day (the “relevant day”), the contract ceases to be an excluded contract and, accordingly, becomes a subscription contract.(5) This Chapter applies to the contract with the following modifications— (a) sections 255 and 256 (pre-contract information) do not apply;(b) section 257 (reminder notices) applies as if—(i) in subsection (1), the reference to a trader entering into a subscription contract with a consumer that does not involve a concessionary period were a reference to a trader entering into the contract,(ii) the reference in subsection (2)(a) to the day that the contract was entered into were a reference to the relevant day, and(iii) subsections (3), (4) and (6) were omitted;(c) section 258 (content and timing etc of reminder notices) applies as if, in subsections (3) and (4), references to the period specified by the trader in pre-contract information were references to the period specified by the trader in information given under subsection (6) of this section;(d) section 261 (terms implied into contracts) applies as if—(i) in paragraph (a), the reference to the duty set out in section 255(1)(a) were a reference to the duty set out in subsection (6) of this section;(ii) paragraph (b) was omitted;(iii) in paragraph (d), the reference to pre-contract information were a reference to the information given under subsection (6) of this section;(e) section 263 (right to cancel during cooling-off periods) applies as if subsection (1)(a) were omitted.(6) As soon as reasonably practicable after the relevant day, and in any event before the end of 12 months beginning with that day, the trader must give to the consumer key pre-contract information and full pre-contract information in relation to the contract, other than any such information that is excluded by subsection (7).(7) Information is excluded by this subsection if—(a) it relates to the initial cooling-off period under the contract;(b) it relates to a period mentioned under section 253(3)(a) (initial concessionary period) and the relevant day falls after the end of that period.(8) For the purposes of the duty under subsection (6)—(a) it is irrelevant whether any of the information required has already been given to the consumer before the relevant day,(b) section 255(5) applies as it applies for the purposes of the duty under section 255(1)(b), and(c) paragraph 13 of Schedule 22 is to be ignored.”Member's explanatory statementThis amendment provides for how the subscription contract regime applies to a subscription contract that was initially excluded from the regime as a result of being a contract of a kind listed in Schedule 21 but later falls to be included in the regime as a result of no longer being a contract excluded under that Schedule.

Amendments 138 and 139 agreed.

Amendment 140 not moved.

Clause 284: Insolvency protection requirement