Consumer Credit Act 1995

F109[Effect of termination of hire-purchase agreement on ancillary contract


73Q.(1) Where a hirer terminates a hire-purchase agreement in accordance with section 73N, any ancillary contract is terminated without any cost to the hirer.

(2) Where an owner is informed by a hirer in accordance with section 73N(1)(a) of the hirer’s decision to terminate a hire-purchase agreement, the owner shall inform any trader with whom the hirer has an ancillary contract that the contract with that trader has been terminated by subsection (1).

(3) Where an ancillary contract is terminated by subsection (1)

(a) the owner or trader with whom the hirer has that contract shall comply with the obligations in section 73O, and

(b) the hirer shall comply with the obligation in section 73N(1)(b).

(4) Where any security has been provided under an ancillary contract that is terminated by subsection (1), it is to be treated as never having had effect and any property lodged with the owner or trader solely for the purposes of that security shall be returned immediately by the owner or trader.

(5) In this section—

"ancillary contract", in relation to a hire-purchase agreement concluded between a hirer and an owner, means another contract concluded between that hirer and that owner, or between that hirer and a trader other than the owner, under which—

(a) the owner, or

(b) in pursuance of arrangements made between the owner and that trader, the trader,supplies to the hirer goods, digital content, a digital service or a service relating to the hire-purchase agreement;

"trader" means—

(a) a natural person, or

(b) a legal person, whether—

(i) privately owned,

(ii) publicly owned, or

(iii) partly privately owned and partly publicly owned,

who is acting for purposes related to the person’s trade, business, craft or profession, and includes any person acting in the name, or on behalf, of the trader.]




Inserted (29.11.2022) by Consumer Rights Act 2022 (37/2022), s. 150(1), S.I. No. 596 of 2022, subject to transitional provision in subs. (2).