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

Application

CONC 4.8.1R

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

Unfair business practices

CONC 4.8.2R

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 4.8.3G

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 4.8.4R

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 4.8.5G

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 assessment or assessment required by CONC 5.2.2R (1); 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 or assessment required by CONC 5.2.2R (1) has 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 4.8.6R

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]