Credit Act 1984

Where a debtor by reason of illness unemployment or other reasonable cause is unable reasonably to discharge his obligations under a regulated contract, the debtor may, where he reasonably expects that he would be able to discharge his obligations—

if the period of the contract were extended and the amount of each payment due under the contract accordingly reduced (without a change being made to the annual percentage rate);

if the dates on which payments due under the contract during a specified period were postponed (without a change being made to the annual percentage rate); or

if the period of the contract were extended and the dates on which payments due under the contract during a specified period were postponed (without a change being made to the annual percentage rate)—

Where a credit provider to whom application is made by a debtor under subsection (1) refuses to vary a regulated contract in accordance with the application, the debtor may apply to the Director for assistance in negotiating a variation of the contract.

Where an application is made under subsection (2), the Director shall seek the views of the credit provider and any mortgagee or guarantor and after giving him a reasonable opportunity to be heard and making such other inquiries as the Director thinks fit, determine whether or not to seek to arrange with the credit provider a variation of the regulated contract and, where he seeks such a variation and is unable to reach agreement with the credit provider, the Director shall refer the application to the Tribunal.

The Tribunal may, where it receives an application referred to it under subsection (3) and has given the applicant, the credit provider and any mortgagee or guarantor an opportunity to be heard, order, or refuse to order, a variation of the contract to which the application relates and, where it orders such a variation, may make such other order as it thinks fit.

Where an order of the Tribunal under subsection (4) is in force, a credit provider under a contract to which the order applies may apply to the Tribunal for a variation of the order.

The Tribunal may, where it receives an application under subsection (5), make such variation of the order to which the application relates as it thinks fit or may refuse to vary the order.

Where an application for variation of a regulated contract is referred to the Tribunal under subsection (3), the credit provider shall not institute proceedings, or exercise a right, under the contract, or a mortgage that relates to the contract, before the Tribunal has made or refused an order under subsection (4).