Introduction
The Consumer Credit Act and its amendments affect all those who use credit to buy goods and or services, for example, on hire-purchase agreements or using a store credit card. The Act governs the licensing of, and other controls, on traders who supply credit, or goods and services on credit. It is therefore a valuable tool to have knowledge of how it works at your fingertips.
There are currently nine Net Lawman articles on Consumer Credit. Links to each can be found at the end of this article.
This article explains a recent change to Consumer Credit law – the CCA 2006. Specifically, it explains the new way of appealing a decision – the appeals tribunal.
Consumer Credit Appeals Tribunal
Under Section 40A of Consumer Credit Act 1974, there shall be a tribunal known as the Consumer Credit Appeals Tribunal (‘the Tribunal’).
If it is decided that you are not fit to hold a consumer credit license, you can appeal against the decision of OFT to the Secretary of State for Trade and Industry. These appeals are heard by an independent panel appointed by the Secretary of State. The Appeals Secretariat at the Department of Trade and Industry handles the administrative arrangements for appeals.
From 6 April 2008, a Consumer Credit Appeals Tribunal will be created to replace the current appeal system. This new tribunal will be a part of the Tribunals Service, an executive agency of the Department for Constitutional Affairs. The time limit for claims and the form of the notice of appeal are to be specified in the rules of the Tribunal.
Constitution of Appeals Tribunal
The Lord Chancellor shall appoint one of the members of the panel of chairmen to preside over the discharge of the Tribunal's functions. The person so appointed shall be known as the President of the Consumer Credit Appeals Tribunal.
The Lord Chancellor may appoint one of the members of the panel of chairmen to be the Deputy President of the Consumer Credit Appeals Tribunal. The Deputy President shall have such functions in relation to the Tribunal as the President may assign to him.
The functions of the President may, if he is absent or is otherwise unable to act, be discharged
- by the Deputy President; or
- if there is no Deputy President or he too is absent or otherwise unable to act, by a person appointed for that purpose from the panel of chairmen by the Lord Chancellor
On an appeal to the Tribunal, the persons to act as the members of the Tribunal for the purposes of the appeal shall be selected from the panel of the chairmen or the lay panel or at least one person from the panel of the chairmen.
If it appears to the Tribunal that a matter before it involves a question of fact of special difficulty, it may appoint one or more experts to assist.
If the President or the Deputy President ceases to be a member of the panel of chairmen, he shall also cease to be the President or (as the case may be) the Deputy President.
The Lord Chancellor shall appoint a panel of persons for the purpose of serving as chairmen of the Tribunal.
Each member of the panel of chairmen or the lay panel shall hold and vacate office in accordance with the terms of his appointment.
The Lord Chancellor may remove a member of either panel from office on the ground of incapacity or misbehavior.
Tribunal Powers
The Tribunal shall sit at such times and in such places as the Lord Chancellor may direct.
The Tribunal may, on an appeal, consider any evidence that it thinks relevant, whether or not it was available to the OFT at the time it made the determination appealed against.
Rules may make provision restricting the evidence that the Tribunal may consider on an appeal in specified circumstances.
How much does it cost?
Where the Tribunal disposes of an appeal and it decides that OFT was wrong or during the course of appeal OFT admit that its determination was wrong, the Tribunal may direct OFT to pay whole or part of the costs to appellant.
Where the Tribunal found that the party to appeal vexatiously or frivolously bringing the appeal it may also direct the party to pay the whole or a part of costs.
Appeals from the Consumer Credit Appeals Tribunal
A new section 41A of the 1974 Act establishes the right to appeal to the Courts of Appeal of England & Wales and Northern Ireland or Court of Session in Scotland on a point of law against a decision of the Tribunal. If the appeal court considers that the decision is wrong in law it may quash or vary the decision, substitute a decision of its own for the decision of the Tribunal or remit (with directions, if it wishes) the matter back to the Tribunal for a rehearing and decision. An appeal may be made from the Courts of Appeal to the House of Lords with the leave of the Court or of the House of Lords. Appeals from the Court of Session lie to the House of Lords in the manner provided for in section 40 of the Court of Session Act 1988.
Relevant Net Lawman document templates:
Relevant Net Lawman articles on Consumer Credit:
| 
