Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

CONC 4.8 Pre-contract: unfair business practices: consumer credit lending

Application

CONC 4.8.1RRP

This section applies to a firm carrying on consumer credit lending.

Unfair business practices

CONC 4.8.2RRP

A firm must not unfairly encourage, incentivise or induce a customer to enter into a regulated credit agreement quickly without allowing the customer time to consider the pre-contract information under section 55 of the CCA and the explanations provided under CONC 4.2.5 R.

[Note: paragraph 5.10 of ILG]

CONC 4.8.3GRP

Stating an end date for a promotion would not amount to the behaviour in CONC 4.8.2 R.

[Note: paragraph 5.10 (box) of ILG]

CONC 4.8.4RRP

A firm must not unfairly encourage, incentivise or induce a customer to enter into a regulated credit agreement for an amount higher than the customer requests.

[Note: paragraph 5.11 of ILG]

CONC 4.8.5GRP

Merely offering a customer more credit than the customer requested would not amount to the behaviour in CONC 4.8.4 R where:

  1. (1)

    the offer of the higher amount was based on a proper creditworthiness assessment1; or

  2. (2)

    the firm offers more advantageous terms, conditions or prices to customers for larger loans, provided that such offers are sufficiently transparent and a proper creditworthiness assessment 1has been carried out;

and the customer was not pressurised or unfairly coerced into accepting the higher amount of credit.

[Note: paragraph 5.11 (box) of ILG]

CONC 4.8.6RRP

A firm must not lead a customer to believe that the customer's current debt repayments can be reduced under a regulated credit agreement over the same term when this is not the case.

[Note: paragraph 5.13 of ILG]