CONC 4.7 Information to be provided on entering a current account agreement

Application

CONC 4.7.1R

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

Information on entering into current account

CONC 4.7.2R
  1. (1)

    When a firm enters into a current account agreement where:

    1. (a)

      there is a possibility that the account-holder may be allowed to overdraw on the current account without a pre-arranged overdraft or exceed a pre-arranged overdraft limit; and

    2. (b)

      if the account-holder did so, this would be a regulated credit agreement;

    the current account agreement must contain the information in (2) and (3).[Note: section 74A(1) of CCA]

  2. (2)

    The information required by (1) is:

    1. (a)

      the rate of interest charged on the amount by which the account-holder overdraws on the current account or exceeds the pre-arranged overdraft limit;

    2. (b)

      any conditions applicable to that rate;

    3. (c)

      any reference rate on which that rate is based;

    4. (d)

      information on any changes to that rate of interest (including the periods that the rate applies to and any conditions or procedure applicable to changing that rate); and

    5. (e)

      any other charges payable by the account holder under the agreement (and the conditions under which those charges may be varied).[Note: section 74A(2) of CCA]

  3. (3)

    Where different rates of interest are charged in different circumstances, the firm must provide the information in (2)(a) to (d) in respect of each rate. [Note: section 74A(4) of CCA]

[Note: article 18 of the Consumer Credit Directive]