supplier does not live up to his obligations, he may be
sued by the customer for breach of contract.
If credit is involved, the situation may be complicated
by the fact that the creditor and supplier are not the
same person. For example, a credit card may have been
used to buy goods. The Act contains two provisions which
have the effect of making the credit grantor equally
liable for any misrepresentations or breach of contract
by the supplier.1 Section 56.In the case of regulated agreements, the
dealer is deemed to be acting as the creditor’s agent. The
creditor is, therefore, responsible for the negotiations
conducted on his behalf by the supplier including, for
example, any misrepresentations.2 Section 75. This makes the creditor equally re-
sponsible with the supplier for any misrepresentation or
breach of contract. However, the section only applies if
the agreement meets the following conditions:(a) it is a regulated credit agreement;
(b) the cash price of the item is between £100 and
£30,000;
(c) the credit is granted under an agreement between
the creditor and supplier.
Equal liability does not apply to non-commercial
agreements or where the customer has arranged his own
credit, such as a bank overdraft or a cash advance from
a credit card company.The scope of the equal liability
provisions
The precise effect of s 75, particularly in relation to
transactions paid for by credit card, has been the subject
of ongoing discussions between the Director General of
Fair Trading and the credit card companies. The prob-
lem areas are as follows:■Section 75 came into effect on 1 July 1977 and applies
to regulated agreements made on or after that date. It
is unclear whether s 75 applies to card-holders who
first obtained their cards before 1 July 1977. Follow-
ing discussions with the Director General of Fair
Trading, Barclaycard and Access voluntarily agreed
to accept liability to card-holders who first obtained
their cards before 1977. However, this voluntary
liability is limited to the amount of the transaction
charged to the credit card account.Part 3Business transactions
394
Post-contract information
The 1974 Act included requirements in relation to the
provision of information after the contract had been
concluded. These included periodic statements for run-
ning-account credit, notices of variation in the agree-
ment, default, enforcement and termination notices
(see later), and information to be provided on request.
The 2006 Act introduces new rights to post-contract
information. Creditors in regulated fixed-sum credit
agreements must provide debtors with an annual state-
ment of their position. The first statement is due within
one year of the day after the agreement was made. If the
creditor fails to provide a statement he will not be able
to enforce the agreement, nor charge interest during
the period in which he is in default. The debtor will not
be liable for any default sum that would have become
payable for breach of the agreement during the period of
non-compliance. Annual statements must also be pro-
vided to debtors in relation to running-account credit.
There are also new requirements in relation to notices of
arrears, default notices and notices relating to post-
judgment interest. The OFT is also required to produce
information sheets, explaining the consumer’s rights
and responsibilities and sources of information and
advice, to be in included in arrears and default notices.
Credit reference agencies
These organisations collect information about people’s
creditworthiness. It is normal practice for traders in the
credit business to use the services of such an agency to
vet the suitability of applicants for credit. Sections
157–159 give consumers the right to obtain the name
and address of any agency used and, for a £2 fee, a copy
of any files held. If the information is wrong, the con-
sumer can add a correction to the file.
Liability of the supplier and
creditorA supplier of goods and services will be liable for any false
statements he makes which persuade a customer to enter
into an agreement. In addition, certain terms are implied
into contracts for the supply of goods and services. If the