[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback]
	Statutes of Northern Ireland
You are here: BAILII >> Databases >> Statutes of Northern Ireland >> URL: http://www.bailii.org/nie/legis/num_act/mai1933318.txt

[New search] [Help]

MONEYLENDERS ACT (NORTHERN IRELAND) 1933

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - LONG TITLE

An Act to amend the law with respect to persons carrying on
business as moneylenders, and for purposes connected therewith.{1}
[13th June 1933]
The Act is prospectively repealed by the Consumer Credit Act 1974
(c.39)

S.1 rep. by 1953 c.24 (NI) s.80 sch.4. S.2 rep. by 1974 c.39
s.192(3)(b) sch.5 Pt.II. S.3 rep. by 1953 c.24 (NI) s.80 sch.4;
1974 c.39 s.192(3)(b) sch.5 Pt.II. S.4 rep. by 1974 c.39 s.192(3)(b)
sch.5 Pt.II. Ss.5(1)(4) rep. with saving by 1974 c.39 s.192(3)(b)
sch.5 Pt.II; SI 1977/802; 1979/1685; subs.(5) rep. by 1974 c.39
s.192(3)(b) sch.5 Pt.II; subs.(6) rep. with saving by 1974 c.39
s.192(3)(b) sch.5 Pt.II; SI 1979/1685

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 6
Form of moneylenders' contracts.

6.(1) No contract for the repayment by a borrower of money lent to
him or to any agent on his behalf by a moneylender after the
commencement of this Act or for the payment by him of interest on
any money so lent, and no security given by the borrower or by
any such agent in respect of a contract for the repayment of money
so lent or interest thereon, shall be enforceable

(a)unless a note or memorandum in writing of the contract be made
and signed by the borrower, and, where the borrower is a married
woman totally dependent on her husband, signed also by her husband,
and a copy of the note or memorandum be delivered or sent to the
borrower within seven days of the making of the contract; or

(b)if it is proved that the note or memorandum was not signed by
the borrower, and, where the borrower is a married woman totally
dependent on her husband, signed also by her husband, before the
money was lent or the security was given as the case may be:

Provided that the contract shall not be rendered unenforceable by
reason only of the fact that there is in the copy of the note or
memorandum delivered or sent to the borrower an error or omission
if, in the opinion of the court or judge, the error or omission
is not a material one and the borrower has not been prejudiced
thereby.

(2) The note or memorandum required by this section shall contain
all the terms of the contract, and in particular shall show the
authorised name and authorised address of the moneylender and that
he is licensed under this Act, the date on which the loan is
made, the amount of the principal of the loan, and either the
interest charged on the loan expressed in terms of a rate per
cent., per annum, or the rate per cent. per annum represented by
the interest charged as calculated in accordance with the provisions
of the First Schedule to this Act.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 7
Prohibition of compound interest and provision as to defaults.

7. Subject as hereinafter provided, any contract made after the
commencement of this Act for the loan of money by a moneylender
shall be illegal in so far as it provides directly or indirectly
for the payment of compound interest or for the rate or amount of
interest being increased by reason of any default in the payment of
sums due under the contract:

Provided that provision may be made by any such contract that if
default is made in the payment upon the due date of any sum
payable to the moneylender under the contract, whether in respect of
principal or interest, the moneylender shall be entitled to charge
simple interest on that sum from the date of the default until the
sum is paid, at a rate not exceeding the rate payable in respect
of the principal apart from any default, and any interest so
charged shall not be reckoned for the purposes of this Act as part
of the interest charged in respect of the loan.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 8
Obligation of moneylender to supply information as to state of loan
and copies of documents relating thereto.

8.(1) In respect of every contract for the repayment of money lent
by a moneylender whether made before or after the commencement of
this Act, the moneylender shall, on any reasonable demand in writing
being made by the borrower at any time during the continuance of
the contract and on tender by the borrower of the sum of [5p] for
expenses, supply to the borrower or, if the borrower so requires,
to any person specified in that behalf in the demand, a statement
signed by the moneylender or his agent showing

(a)the date on which the loan was made, the amount of the
principal of the loan and the rate per cent. per annum of interest
charged; and

(b)the amount of any payment already received by the moneylender in
respect of the loan and the date on which it was made; and

(c)the amount of every sum due to the moneylender, but unpaid, and
the date upon which it became due, and the amount of interest
accrued due and unpaid in respect of every such sum; and

(d)the amount of every sum not yet due which remains outstanding,
and the date upon which it will become due.

(2) A moneylender shall, on any reasonable demand in writing by the
borrower, and on tender of a reasonable sum for expenses, supply a
copy of any document relating to a loan made by him or any
security therefor, to the borrower, or if the borrower so requires,
to any person specified in that behalf in the demand.

(3) If a moneylender to whom a demand has been made under this
section fails without reasonable excuse to comply therewith within
one month after the demand has been made, he shall not, so long
as the default continues, be entitled to sue for or recover any
sum due under the contract on account either of principal or
interest, and interest shall not be chargeable in respect of the
period of the default, and if such default is made or continued
after proceedings have ceased to lie in respect of the loan, the
moneylender shall be liable on summary conviction to a fine not
exceeding five pounds for every day on which the default continues.

S.9 rep. by 1974 c.39 s.192(3)(b) sch.5 Pt.II. Ss.10,11 rep. with
saving by 1974 c.39 s.192(3)(b) sch.5 Pt.II; SI 1977/325

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 12
Prohibition of charge for expenses on loans by moneylenders.

12. Any agreement between a moneylender and a borrower or intending
borrower for the payment by the borrower or intending borrower to
the moneylender of any sum on account of costs, charges or expenses
incidental to or relating to the negotiations for or the granting
of the loan or proposed loan shall be illegal, and if any sum is
paid to a moneylender by a borrower or intending borrower as for
or on account of any such costs, charges or expenses, that sum
shall be recoverable as a debt due to the borrower or intending
borrower, or, in the event of the loan being completed, shall, if
not so recovered, be set off against the amount actually lent and
that amount shall be deemed to be reduced accordingly.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 13
Limitation of time for proceedings in respect of money lent by
moneylenders.

13.(1) No proceedings shall lie for the recovery by a moneylender
of any money lent by him after the commencement of this Act or
any interest thereon, or for the enforcement of any agreement made
or security taken after the commencement of this Act in respect of
any loan made by him, unless the proceedings are commenced before
the expiration of twelve months from the date on which the cause
of action accrued:

Provided that

(a)if during the period of twelve months aforesaid or at any time
within any subsequent period during which proceedings may by virtue
of this proviso be brought, the debtor acknowledges in writing the
amount due and gives a written undertaking to the moneylender to
pay that amount, proceedings for the recovery of the amount due may
be brought at any time within a period of twelve months from the
date of acknowledgement and undertaking;

(b)the time limited by the foregoing provisions of this section for
the commencement of proceedings shall not begin to run in respect
of any payments from time to time becoming due to a moneylender
under a contract for the loan of money until a cause of action
accrues in respect of the last payment becoming due under the
contract;

(c)if at the date on which the cause of action accrues or on
which any such acknowledgement and undertaking as aforesaid is given
by the debtor, the person entitled to take the proceedings is non
compos mentis, the time limited by the foregoing provisions of this
section for the commencement of proceedings shall not begin to run
until that person ceases to be non compos mentis or dies, whichever
first occurs;

Para.(d) rep. by 1958 c.10 (NI) s.75 sch.

(2)[Without prejudice to the powers of a court under section one of
the Moneylenders Act, 1900,] if at the time when proceedings are
taken by a moneylender in respect of a default in the payment of
any sum due to him under a contract for the loan of money, any
further amount is outstanding under the contract but not yet due,
the court may determine the contract and order the principal
outstanding to be paid to the moneylender with such interest
thereon, if any, as the court may allow up to the date of
payment.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 14
Special provisions as to pawnbrokers' loans.

14.(1) The provisions of sections six, twelve and thirteen of this
Act shall not apply in relation to any loan by a pawnbroker on a
pledge, or in relation to any debt in respect of such a loan, or
any interest thereon, notwithstanding that the loan is not made in
the course of the business carried on by the pawnbroker in
accordance with the Acts for the time being in force in relation
to pawnbrokers, so long as the following conditions are complied
with in respect of the loan:

(a)the pawnbroker shall deliver or send to the pawner within seven
days a note or memorandum containing all the terms of the contract,
and in particular showing the date on which the loan is made, the
amount of the principal of the loan, the interest charged on the
loan expressed in terms of a rate per cent. per annum, and any
other charges payable by the pawner under the contract, [and the
rate of interest charged shall not exceed the rate of twenty per
cent. per annum];

(b)subject as hereinafter provided, the pawner shall not be charged
any sum on account of costs, charges or expenses incidental to or
relating to the negotiations for or the granting of the loan or
proposed loan, except a charge for the preparation of documents
relating to the loan not exceeding the sum of [5p], and a charge
equal to the actual amount of any stamp duty paid by the
pawnbroker upon any such document:

Provided that a pawnbroker shall not be deemed to have failed to
comply with the foregoing conditions by reason of his having made
in good faith and in accordance with the terms of the contract for
the loan

(i)a reasonable charge in respect of the storage or care of any
pledge which is not physically delivered to him or which, although
so delivered, is of such weight or size that [it would not, under
the provisions of a scheme made under section 28 of the Post
Office Act 1969 relating to parcel post, be received for
transmission by parcel post]; or

(ii)a charge for interest at a rate not exceeding twenty per cent.
per annum upon any sum reasonably expended by the pawnbroker in
respect of the storage or care of the pledge; or

<(iii)a charge not exceeding [5p] for rendering any account of the sale of any pledge; or

<(iv)a charge not exceeding [5p] in respect of any inspection of the pawnbroker's books.

(2) Any charge authorised by this section for the preparation of
documents relating to a loan, or in respect of stamp duty upon any
such document, may be deducted by the pawnbroker from the amount of
the loan, and, if so deducted, shall be deemed for the purposes of
this Act to be included in the principal.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 15
Provisions as to appropriation to principal and interest.

15. Where by a contract for the loan of money by a moneylender
the interest charged on the loan is not expressed in terms of a
rate, any amount paid or payable to the moneylender under the
contract (other than simple interest charged in accordance with the
proviso to section seven of this Act) shall be appropriated to
principal and interest in the proportion that the principal bears to
the total amount of the interest, and the rate per cent. per annum
represented by the interest charged as calculated in accordance with
the provisions of the First Schedule to this Act shall be deemed
to be the rate of interest charged on the loan.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 16
Notice and information to be given on assignment of moneylenders'
debts.

16.(1) Where any debt in respect of money lent by a moneylender
whether before or after the commencement of this Act or in respect
of interest on any such debt or the benefit of any agreement made
or security taken in respect of any such debt or interest is
assigned to any assignee, the assignor (whether he is the
moneylender by whom the money was lent or any person to whom the
debt has been previously assigned) shall, before the assignment is
made

(a)give to the assignee notice in writing that the debt, agreement
or security is affected by the operation of this Act; and

(b)supply to the assignee all information necessary to enable him to
comply with the provisions of this Act relating to the obligation
to supply information as to the state of loans and copies of
documents relating thereto;

(2) In this section the expression "assigned" means assigned by any
assignment inter vivos other than an assignment by operation of law,
and the expressions "assignor" and "assignee" have corresponding
meanings.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 17
Application of Act as respects assignees.

17.(1) Subject as hereinafter provided, the provisions of this Act
shall continue to apply as respects any debt to a moneylender in
respect of money lent by him after the commencement of this Act or
in respect of interest on money so lent or of the benefit of any
agreement made or security taken in respect of any such debt or
interest, notwithstanding that the debt or the benefit of the
agreement or security may have been assigned to any assignee, and,
except where the context otherwise requires, references in this Act
to a moneylender shall accordingly be construed as including any
such assignee as aforesaid:

Provided that

(a)notwithstanding anything in this Act

(i)any agreement with, or security taken by, a moneylender in
respect of money lent by him after the commencement of this Act
shall be valid in favour of any bona fide assignee or holder for
value without notice of any defect due to the operation of this
Act, and of any person deriving title under him; and

(ii)any payment or transfer of money or property made bona fide by
any person, whether acting in a fiduciary capacity or otherwise, on
the faith of the validity of any such agreement or security,
without notice of any such defect shall, in favour of that person,
be as valid as it would have been if the agreement or security
had been valid; and

<(iii)the provisions of this Act limiting the time for proceedings in respect of money lent shall not apply to any proceedings in respect of any such agreement or security commenced by a bona fide assignee or holder for value without notice that the agreement or security was affected by the operation of this Act, or by any person deriving title under him,

(b)but in every such case the moneylender shall be liable to
indemnify the borrower or any other person who is prejudiced by
virtue of this section, and nothing in this proviso shall render
valid an agreement or security in favour of, or apply to
proceedings commenced by, an assignee or holder for value who is
himself a moneylender; and

(b)for the purposes of this Act and the Moneylenders Act, 1900, the
provisions of section three of the Conveyancing Act, 1882, shall
apply, and be deemed always to have applied, as if the expression
"purchaser" included a person making any such payment or transfer as
aforesaid.

(2) Nothing in this section shall render valid for any purpose any
agreement, security or other transaction which would, apart from the
provisions of this Act, have been void or unenforceable.

S.18 rep. by 1959 c.25 (NI) s.154(3) sch.5

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 19
Rules as to particulars on writs, etc., restriction on entering
judgment and issue of writs of execution.

19.(1) The rule-making authority may make rules for the following
purposes:

(a)for prescribing the particulars to be given on any writ, petition
or other proceeding instituted by a moneylender for the recovery of
money lent by him or any interest thereon; and

(b)for providing that, within twelve months from the date of any
warrant of attorney given to, or any writ, petition or other
proceedings instituted by, a moneylender for the recovery of money
lent by him or any interest thereon, judgment shall not be entered
thereon without an order of the court or judge; and

(c)for providing that, where after the expiration of twelve months
from the date of any such warrant of attorney judgment has been
entered thereon, no writ of execution shall issue without an order
of the court or judge.

Upon the making of such rules the following provisions of this
section shall come into operation.

(2) Any judgment or order obtained by a moneylender for the
recovery of money lent by him or any interest thereon on foot of
a writ, petition or other proceeding which does not comply with the
provisions of the rules made under paragraph (a) of sub-section (1)
of this section, shall be void.

(3) Upon any application for either of the orders mentioned in
paragraph (b) or paragraph (c) of sub-section (1) of this section
the court or judge shall have all the powers conferred by section
one of the Moneylenders Act, 1900, with respect to the re-opening
of the transactions of moneylenders.

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 20
Interpretation, etc.

20.(1) In this Act, unless the context otherwise requires, the
following expressions have the meanings hereby assigned to them, that
is to say:

"Authorised name" and "authorised address" mean respectively the name
under which and the address at which a moneylender is authorised by
a certificate granted under this Act to carry on business as a
moneylender:

"Business name" means the name or style under which any business is
carried on, whether in partnership or otherwise:

"Company" means any body corporate being a moneylender:

"Firm" means an incorporate body of two or more individuals, or one
or more individuals and one or more corporations, or two or more
corporations, who have entered into partnership with one another with
a view to carrying on business for profit:

"Interest" does not include any sum lawfully charged in accordance
with the provisions of this Act by a moneylender for or on account
of costs, charges or expenses, but save as aforesaid, includes any
amount, by whatsoever name called, in excess of the principal, paid
or payable to a moneylender in consideration of or otherwise in
respect of a loan:

"Moneylender," where used in relation to an application for, or the
grant of, a certificate...., includes an applicant for, or a grantee
of such certificate....:

"Official assignee" means the official assignee appointed in Northern
Ireland under section fifty-nine of the Irish Bankrupt and Insolvent
Act, 1857, as amended by section four of the Supreme Court of
Judicature (Ireland) (No.2) Act, 1897:

"Principal" means in relation to a loan the amount actually lent to
the borrower:

"Resident magistrate" means a magistrate appointed under the
Constabulary (Ireland) Act, 1836, as amended by section six of the
Constabulary Act (Northern Ireland), 1922:

"Rule-making authority" means the rule-making authority under section
sixty-one of the Supreme Court of Judicature Act (Ireland), 1877, as
amended by the Supreme Court of Judicature (Ireland) (No.2) Act,
1897.

(2) ..... This Act shall be construed as one with the Moneylenders
Act, 1900,.....

Subs.(3) rep. by 1954 c.33 (NI) s.48(1) sch.

S.21 rep. by 1969 c.27 (NI) s.3

MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 22
Short title and citation.

22.(1) This Act may be cited as the Moneylenders Act (Northern
Ireland), 1933.

(2) The Moneylenders Act, 1900, and this Act may be cited together
as the Moneylenders Acts (Northern Ireland) 1900 and 1933.

Subs.(3) rep. by SLR (NI) 1952

Sections 5, 6 and15.

1. The amount of principal outstanding at any time shall be taken
to be the balance remaining after deducting from the principal the
total of the portions of any payments appropriated to principal in
accordance with the provisions of this Act.

2. The several amounts taken to be outstanding by way of principal
during the several periods ending on the dates on which payments
are made shall be multiplied in each case by the number of
calendar months during which those amounts are taken to be
respectively outstanding, and there shall be ascertained the aggregate
amount of the sum so produced.

3. The total amount of the interest shall be divided by one-twelfth
part of the aggregate amount mentioned in paragraph 2 of this
Schedule, and the quotient, multiplied by one hundred, shall be
taken to be the rate of interest per cent. per annum.

4. If having regard to the intervals between successive payments it
is desired so to do, the calculation of interest may be made by
reference to weeks instead of months, and in such a case the
foregoing paragraphs shall have effect as though in paragraph 2 the
word "weeks" were substituted for the words "calendar months," and
in paragraph 3 the words "one-fifty-second" were substituted for the
words "one-twelfth."

5. Where any interval between successive payments is not a number
of complete weeks or complete months, the foregoing paragraphs shall
have effect as though one day were one-seventh part of a week or
one-thirtieth part of a month, as the case may be.]

Second Schedule rep. by SLR (NI) 1952