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CONC 4.1 Content of quotations

Application

CONC 4.1.1R

1This section, apart from CONC 4.1.4 R, applies to:

  1. (1)

    a firm with respect to consumer credit lending; or

  2. (2)

    a firm with respect to consumer hiring;

including where the firm provides a quotation acting on behalf of a customer.

CONC 4.1.2R

CONC 4.1.4 R applies to a firm with respect to credit broking, including where the firm provides a quotation acting on behalf of a customer.

Lenders and owners: contents of quotation for certain agreements

CONC 4.1.3R
  1. (1)

    When a firm provides a quotation to a customer in connection with a prospective credit agreement which would or might be secured on the customer's home, the firm must include (or cause to be included) in the quotation a statement that such security would or might be required.

    [Note: regulation 3a of SI 1999/2725]

  2. (2)

    When a firm provides a quotation to a customer (C) in connection with a prospective credit agreement which would or might be secured on C’s home under which, while C continues to occupy the home as C’s main residence and either:

    1. (a)

      no instalment repayments of the credit secured by a mortgage on C’s home and no payment of interest on the credit (other than interest charged when all or part of the credit is repaid voluntarily by C), are due or capable of becoming due; or

    2. (b)

      the lender cannot enforce the credit agreement by taking possession of or selling (or concurring with any other person in selling) the home or any part of it while C continues to occupy it as C’s main residence; and

    3. (c)

      where (b) applies, although interest payments may become due, no full or partial repayment of the credit secured by a mortgage is due or capable of becoming due.

      [Note: regulation 3B of SI 1999/2725]

    the firm must include (or cause to be included) in the quotation the following statement:

    “CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE.”

    [Note: regulation 3A of SI 1999/2725]

  3. (3)

    When a firm provides a quotation to a customer (C) in connection with a prospective credit agreement which would or might be secured on C’s home, other than an agreement to which (2) applies, the firm must include (or cause to be included) in the quotation the following statement:

    “YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”

    [Note: regulation 3b of SI 1999/2725]

  4. (4)

    When a firm provides a quotation to a customer in connection with a prospective credit agreement which would or might2 be secured on land and under which repayments would be made in a currency other than sterling, the firm must include (or cause to be included) in the quotation the following statement:

    “THE STERLING EQUIVALENT OF YOUR LIABILITY UNDER A FOREIGN CURRENCY MORTGAGE MAY BE INCREASED BY EXCHANGE RATE MOVEMENT.”

    [Note: regulation 4 of SI 1999/2725]

  5. (5)

    When a firm provides a quotation to a customer in connection with a prospective agreement for the bailment of goods which would or might be secured on the customer's home, the firm must include (or cause to be included) in the quotation a statement that such security would or might be required.

    [Note: regulation 5a of SI 1999/2725]

  6. (6)

    When a firm provides a quotation to a customer in connection with a prospective agreement for the bailment of goods which would or might be secured on the customer's home, the firm must include (or cause to be included) in the quotation the following statement:

    “YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A HIRE AGREEMENT SECURED BY A MORTGAGE OR OTHER SECURITY ON YOUR HOME.”

    [Note: regulation 5b of SI 1999/2725]

Credit brokers: contents of quotation for certain agreements

CONC 4.1.4R
  1. (1)

    When a firm provides a quotation to a customer in connection with a prospective credit agreement which would or might be secured on the customer's home, the firm must include (or cause to be included) in the quotation a statement that such security would or might be required.

    [Note: regulation 6 of SI 1999/2725]

  2. (2)

    When a firm provides a quotation to a customer (C) in connection with a prospective credit agreement which would or might be secured on C’s home under which, while C continues to occupy the home as C’s main residence and either:

    1. (a)

      no instalment repayments of the credit secured by a mortgage on C’s home and no payment of interest on the credit (other than interest charged when all or part of the credit is repaid voluntarily by C), are due or capable of becoming due; or

    2. (b)

      the lender cannot enforce the credit agreement by taking possession of or selling (or concurring with any other person in selling) the home or any part of it while C continues to occupy it as C’s main residence; and

    3. (c)

      where (b) applies, although interest payments may become due, no full or partial repayment of the credit secured by a mortgage is due or capable of becoming due;

    the firm must include (or cause to be included) in the quotation the following statement:

    “CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE.”

  3. (3)

    When a firm provides a quotation to a customer (C) in connection with a prospective credit agreement which would or might be secured on C’s home, other than an agreement to which (2) applies, the firm must include (or cause to be included) in the quotation the following statement:

    “YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.”

  4. (4)

    When a firm provides a quotation to a customer in connection with a prospective credit agreement which would be secured on land and under which repayments would be made in a currency other than sterling, the firm must include (or cause to be included) in the quotation the following statement:

    “THE STERLING EQUIVALENT OF YOUR LIABILITY UNDER A FOREIGN CURRENCY MORTGAGE MAY BE INCREASED BY EXCHANGE RATE MOVEMENT.”

  5. (5)

    When a firm provides a quotation to a customer in connection with a prospective agreement for the bailment of goods which would or might be secured on the customer's home, the firm must include (or cause to be included) in the quotation a statement that such security would or might be required.

  6. (6)

    When a firm provides a quotation to a customer in connection with a prospective agreement for the bailment of goods which would or might be secured on the customer's home, the firm must include (or cause to be included) in the quotation the following statement:

    “YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A HIRE AGREEMENT SECURED BY A MORTGAGE OR OTHER SECURITY ON YOUR HOME.”

Interpretation: quotations

CONC 4.1.5R
  1. (1)

    Paragraphs (2) to (5) apply to CONC 4.1.3 R and CONC 4.1.4 R (rules on content of quotations).

  2. (2)

    “Quotation” means any document by which a person gives a customer information about the terms on which the person or a lender or owner is prepared to do business, but it does not include:

    1. (a)

      a communication which is also a financial promotion;

    2. (b)

      any document given to a customer under section 58 of the CCA (opportunity for withdrawal from prospective land mortgage);

    3. (c)

      any document sent to a customer for signature which embodies the terms or such of them as it is intended to reduce to writing of a credit agreement or a consumer hire agreement; or

    4. (d)

      any copy of an unexecuted agreement delivered or sent to a customer under section 62 of the CCA (duty to supply copy of unexecuted agreement).

  3. (3)

    Where the words of a statement which must be included in a quotation are specified, the statement must be:

    1. (a)

      in capital letters;

    2. (b)

      clear and legible; and

    3. (c)

      prominent.

  4. (4)

    Providing a quotation includes making a quotation available temporarily.

  5. (5)

    In these rules as they apply to Scotland:

    1. (a)

      any reference to bailment is a reference to hiring; and

    2. (b)

      any reference to a mortgage or a charge on land is a reference to a standard security over land within the meaning of the Conveyancing and Feudal Reform (Scotland) Act 1970.

CONC 4.1.6 G

3For the purposes of CONC 4.1.5R(3)(c), a statement included in a quotation will not be treated as prominent unless it is presented, in relation to the other content of the quotation, in such a way that it is likely that the attention of the average customer to whom such a quotation is addressed would be drawn to it.