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Old 23-04-2008, 07:57 AM
vulture_bank vulture_bank is offline
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i now quote from part of the contents under risk

"Application of the Consumer Credit Act 1974 and Unfair Terms in Consumer Contracts Regulations 1999 may impede collection efforts and could cause early redemption of your notes and/or a loss on your notes.
The primary statute dealing with consumer credit in the United Kingdom is the Consumer Credit Act 1974 – which we will refer to in this base prospectus as the ‘‘Consumer Credit Act’’. The Office of Fair Trading (the ‘‘OFT’’) is responsible for the issue of licences under, and the superintendence of,
the CCA, related consumer credit regulations and other consumer protection legislation. The OFT may review businesses and operations, provide guidelines to follow and take action when necessary.
Currently, a credit agreement is regulated by the CCA where (a) the borrower is or includes an individual, (b) the amount of ‘‘credit’’ as defined in the CCA does not exceed the financial limit, which is £25,000 for credit agreements made on or after 1 May 1998 and lower amounts for credit agreements made before that date and (c) the credit agreement is not an exempt agreement under the CCA. A vast majority of the credit card transactions which occur on a designated account have or will have a credit limit of an amount up to £25,000. Accordingly, the Consumer Credit Act applies to the transactions occurring on the designated accounts and, in whole or in part, to the credit card agreements. This may have consequences for your investment in the notes because of the possible unenforceability of, or possible liabilities for misrepresentation or breach of contract in relation to, an underlying credit card agreement.

(a) Enforcement of improperly executed or modified credit card agreements
Any credit card agreement that is wholly or partly regulated by the CCA or treated as such has to comply with requirements under the CCA as to licensing of lenders and brokers, documentation and procedures of credit card agreements and (in so far as applicable) pare-contract disclosure. If it
does not comply with those requirements, then to the extent that the credit card agreement is regulated by the CCA or treated as such, it is unenforceable against the borrower (a) without an order of the OFT, if the lender or any broker does not hold the required licence at the relevant time,
(b) totally, if the form to be signed by the borrower is not signed by the borrower personally or omits or mis-states a ‘‘prescribed term’’ or (c) without a court order in other cases and, in exercising its discretion whether to made the order, the court would take into account any prejudice suffered by
the borrower and any culpability of the lender. If a credit card agreement related to a designated account has not been executed or modified in accordance with the provisions of the Consumer Credit Act and is completely unenforceable as a result, the principal receivables arising thereon will
be treated as ineligible receivables. See ‘‘The Receivables – Representations’’.
With respect to those credit card agreements which may not comply with the Consumer Credit Act, such that a court order could not be obtained, the originators estimate that, on any pool selection date or additional selection date, this will represent less than 1 per cent. of the aggregate
principal amount of receivables in the designated accounts. The originators do not anticipate any material increase in the percentage of these receivables in the securitised portfolio. In respect of those designated accounts that do not comply with the Consumer Credit Act, it will still be possible to collect amounts owing by cardholders and seek arrears from cardholders who are falling behind with their payments. It is unlikely that the originators will have an obligation to pay or to account to a cardholder for any payments received by an originator because of this non-compliance with the Consumer Credit Act. Any such receivables will be treated by the receivables trustee as ineligible receivables. See ‘‘Representations’’."
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