Third Interim Report on Cost of Credit Disclosure Act 1994

Part 5 -- Leases of Goods

Section 47 Definitions

"cash value" [clause (a)]

As mentioned in Part B, the definition of cash value is problematic in the case of lease transactions. The following change will not necessarily address all of the problems, but is consistent with the change to the definition of "cash value" discussed earlier in relation to section 1.

Recommendation 23:

Subclause (ii) of the definition should be revised to read:

(ii) in any other case, means their agreed cash value, not exceeding the merchant's reasonable estimate of the amount that a typical cash customer would pay to buy the goods.

Part 6 -- Compliance

Section 59 Offences

The version of CCDA considered by the working group would have imposed criminal liability only for deliberate contraventions of the act. This was in keeping with the emphasis on private remedies as the most effective means of encouraging compliance with the act.[26] However, most members of the working group thought that such a limitation would severely limit administrators' ability to enforce the legislation. As a result, the current version deletes the reference to "deliberate" contravention. One commentator on CCDA 3.2 noted that this provision could in theory impose criminal liability for very minor transgressions of the act. I am not particularly comfortable with this provision.

Recommendation 24

The Uniform Law Section should decide whether this provision needs to be qualified in any way. One possibility would be to identify specific provisions whose contravention will be regarded as an offence.

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