This section applies to a firm with respect to operating an electronic system in relation to lending in relation to a borrower under a P2P agreement.
A firm must ensure that a P2P agreement that the firm makes available to a borrower and a lender provides for the following contractual rights and obligations and procedure for and effect of the exercise of those rights and obligations:
a right for the borrower:
to withdraw from the agreement (“the right of withdrawal”);
without giving any reason; and
beginning with the day after the P2P agreement is made; or
beginning with the day on which the borrower receives the contractual terms and conditions of the service and any other pre-contractual information required, as the case may be, under CONC 4.3, if that is later than the date in (1);
where written notice is given of the right of withdrawal by electronic means:
where written notice is given of the right of withdrawal, other than by electronic means:
the borrower is not liable to pay to the firm (on behalf of the lender) or the lender any compensation, fees or charges, except any non-returnable charges paid by the lender or by the firm (on behalf of the lender) to a public administrative body;
the effect of exercising the right to withdraw is that the obligations of the borrower under the agreement cease to have effect except for the obligation in (4); and
where an amount is payable where (4) applies, the agreement may provide that the amount must be paid without undue delay and no later than the end of the period of 30 days beginning with the day after the day on which the notice of withdrawal was given (and if not paid by the end of that period the agreement may provide that the sum may be recovered from the borrower as a debt).