Credit Contracts and Consumer Finance Act 2003

142 Election for Act to apply

• (1) A creditor under a credit contract made before the commencement of this section may, after the commencement of this section, elect that this Act apply to the credit contract and any guarantee made in connection with the credit contract from a particular date (the effective date).

  (2) A creditor must not make an election under subsection (1) if that election increases any obligation that the debtor has in connection with the credit contract.

  (3) The effective date must be a date after the date that the election is made.

  (4) If a creditor makes an election under subsection (1),—

  • (a) the Credit Contracts Act 1981 and the Hire Purchase Act 1971 do not apply to the credit contract or the guarantee from the effective date; and

  • (b) the creditor must, within 5 working days of the day that the election is made, notify the debtor or guarantor in writing—

    • (i) that the creditor has made an election under this section; and

    • (ii) that this Act applies to the credit contract or guarantee from the effective date; and

  • (c) the election does not affect the completion of a matter or thing, or the bringing or completion of proceedings that relate to a right, interest, title, immunity, or duty that existed immediately before the election takes effect; and

  • (d) the Credit Contracts Act 1981 and the Hire Purchase Act 1971 continue to have effect as if the election had not been made for the purpose of completing the matter or thing or the bringing or completion of proceedings that relate to a right, interest, title, immunity, or duty that existed immediately before the election takes effect.