Credit Act 1984

When an application is made for a determination under section 85, the civil penalty to which the application relates is stayed pending the disposal of the application by the Tribunal.

For the purposes of staying any such civil penalty, the application operates as an interim determination of the Tribunal in the terms sought by the application pending its disposal by the Tribunal.

Until the interim determination ceases to have effect, the credit provider must not, in relation to an amount in excess of the amount financed under the regulated contract concerned—

take enforcement action against the debtor; or

enter into an agreement under section 69 for the refinancing of the contract; or

make a default charge under section 72.

When the application is disposed of by the Tribunal, the interim determination under this section ceases to have effect and (unless a determination in the same terms is made by the Tribunal) is taken never to have had effect.

The Tribunal may, before disposing of the application, give the applicant such directions as it considers appropriate to protect the interests of the debtors concerned, including directions relating to the payment of all or any of the amounts concerned into a trust account.

This section does not apply to an application for a determination if—

the determination cannot be made by the Tribunal under section 85; or

the Tribunal excludes the application from the operation of this section because a direction under subsection (5) has not been complied with or for any other reason.

For the purposes of this section, a reference to the disposal of an application includes a reference to the withdrawal of the application by the applicant.

In this section, civil penalty means a penalty which is imposed on a credit provider by the operation of section 42, 67 or 81 and under which the debtor is not liable to pay to the credit provider an amount otherwise payable under a regulated contract.