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CONC 2.2 General principles for credit-related regulated activities

CONC 2.2.1RRP

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

General principles

CONC 2.2.2GRP

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]

    1

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

Duty not to use misleading names

CONC 2.2.3RRP

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]

CONC 2.2.4GRP
  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.

  3. (3)

    A firm which operates under a variety of trading names should take particular care to ensure that customers are not misled as to the identity of the firm, or the nature or scale of the firm’s business. 4

Effect on other rules and legislation

CONC 2.2.5RRP

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 Consumer Rights Act 20152, Part 8 of the Enterprise Act 2002 and any other applicable consumer protection legislation.