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CONC 4.7 Information to be provided in relation to current account agreements 1



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

Information on entering into current account

  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]

Additional requirements in relation to certain current accounts

CONC 4.7.3G

12In addition to the rules in this section, BCOBS contains rules about information and tools to be provided to customers which may apply to firms that engage in consumer credit lending in connection with overdrafts on current accounts. In particular:

  1. (1)

    BCOBS 4.4 (Further information to be provided about personal current accounts) contains rules requiring certain firms that offer personal current accounts to provide information about overdrafts and other matters to applicants for certain types of current account, and to publish such information; and

  2. (2)

    BCOBS 8 (Tools for personal current account customers) contains rules requiring certain firms to make available tools to enable banking customers to:

    1. (a)

      calculate the cost of overdrawing on a current account; and

    2. (b)

      obtain an indication of the likelihood they will be approved for an authorised non-business overdraft agreement of a particular amount.