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CONC 2.3 Conduct of business: lenders and restrictions on provision of credit card cheques



This section applies to a firm with respect to consumer credit lending.

General conduct


A firm must explain the key features of a regulated credit agreement to enable the customer to make an informed choice as required by CONC 4.2.5 R (adequate explanations).

[Note: paragraph 2.2 of ILG]


CONC 6.7.2 R requires a firm to monitor a customer's repayment record and take appropriate action where there are signs of actual or possible repayment difficulties.


A firm must take reasonable steps to satisfy itself that any credit brokers with whom the firm deals are authorised persons or appointed representatives.

[Note: paragraph 1.27 of CBG]

Provision of credit card cheques

  1. (1)

    A firm may provide credit card cheques only to a customer who has asked for them.

    [Note: section 51A(2) of CCA]

  2. (2)

    A firm may provide credit card cheques only on a single occasion in respect of each request that is made.

    [Note: section 51A(3) of CCA]

  3. (3)

    The number of credit card cheques provided in respect of a request must not exceed three (or, if less, the number requested).

    [Note: section 51A(4) of CCA]

  4. (4)

    Where a single request is made for the provision of credit card cheques in connection with more than one credit-token agreement, (2) and (3) apply as if a separate request had been made for each agreement.

    [Note: section 51A(5) of CCA]

  5. (5)

    Where more than one request for the provision of credit card cheques is made in the same document or at the same time:

    1. (a)

      they may be provided in respect of only one of the requests, but

    2. (b)

      if the requests relate to more than one credit-token agreement, in relation to each agreement they may be provided only in respect of one of the requests made in relation to that agreement.

    [Note: section 51A(6) of CCA]

  6. (6)

    This rule does not apply to credit card cheques provided in connection with a credit-token agreement that is entered into by the customer wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the customer.

    [Note: section 51B(1) of CCA]

  7. (7)

    If a credit-token agreement includes a declaration made by the customer to the effect that the agreement is entered into as mentioned in (6), the agreement is treated for the purposes of (6) as having been so entered into.

    [Note: section 51B(2) of CCA]

  8. (8)

    The declaration in (7) must be in the form and content set out in CONC App 1 for the exemption relating to business.

  9. (9)

    Paragraph (7) does not apply if, when the agreement is entered into

    1. (a)

      the lender; or

    2. (b)

      any person who has acted on behalf of the lender in connection with the entering into of the agreement;

    knows, or has reasonable cause to suspect, that the agreement is not entered into as mentioned in (6).

    [Note: section 51B(3) of CCA]

  10. (10)

    Where an agreement has two or more lenders, references in (9) to the lender are to any one or more of them.

    [Note: section 51B(5) of CCA]