CONC 4.7 Information to be provided on entering a current account agreement
Application
This section applies to a firm with respect to consumer credit lending.
Information on entering into current account
- (1)
When a firm enters into a current account agreement where:
- (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
- (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]
- (a)
- (2)
The information required by (1) is:
- (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;
- (b)
any conditions applicable to that rate;
- (c)
any reference rate on which that rate is based;
- (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
- (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]
- (a)
- (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]