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CONC 2.2 General principles for credit-related regulated activities


This section applies to a firm with respect to credit-related regulated activities.

General principles


Principle 6 requires a firm to pay due regard to the interests of its customers and treat them fairly. Examples of behaviour by or on behalf of a firm which is likely to contravene Principle 6 include:

  1. (1)

    targeting customers with regulated credit agreements which are unsuitable for them, by virtue of their indebtedness, poor credit history, age, health, disability or any other reason;

  2. (2)

    subjecting customers to high-pressure selling, aggressive or oppressive behaviour, or unfair coercion;

  3. (3)

    not allowing customers who are unable to make payments a reasonable time and opportunity to meet repayments;

  4. (4)

    taking steps to repossess a customer's home, other than as a last resort.

    [Note: paragraph 7.14 of ILG and 6.3 of SCLG]

[Note: paragraphs 2.3 of ILG, 2.2 of CBG and 2.3 of DMG]

Duty not to use misleading names


A firm must not carry on a credit-related regulated activity under a name which is likely to mislead customers about the status of the firm or the nature of its business, or in any other way.

[Note: section 25(1AD) of CCA]

  1. (1)

    In relation to CONC 2.2.3 R, an example of where a name may mislead is if the average customer of the firm is likely to be misled by the name of the firm.

  2. (2)

    Examples of the matters concerning a firm's status or the nature of its business about which its name may mislead customers include:

    1. (a)

      the identity or nature of the firm;

    2. (b)

      its commercial or profit-seeking status;

    3. (c)

      its role, including any relationship with any other person;

    4. (d)

      the extent of its authority;

    5. (e)

      stating or implying that the firm is a public body or that it is related or connected in some way to a charitable, not-for-profit or governmental or local governmental organisation or to the courts;

    6. (f)

      the nature of the products or services supplied;

    7. (g)

      the cost of those products or services; and

    8. (h)

      the scale of the business including its geographical scope.

Effect on other rules and legislation


Any specific rule or piece of guidance in CONC is without prejudice to the application of PRIN, any other rules in the Handbooks, the CCA and secondary legislation made and things done under it, the Consumer Protection from Unfair Trading Regulations 2008, the Unfair Terms in Consumer Contracts Regulations 1999, Part 8 of the Enterprise Act 2002 and any other applicable consumer protection legislation.