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 5B.6 Consequences of contravention of the total cost of credit cap

CONC 5B.6.1R

1Where a RTO firm enters into a RTO agreement in contravention of a rule in CONC 5B.2.11R:

  1. (1)

    an obligation in or under a RTO agreement that requires the borrower to pay charges which in total would exceed the total cost of credit cap, is unenforceable in its entirety; and

  2. (2)

    the borrower is entitled to recover any amount paid in charges. If that is the case, at the written or oral request of the borrower, the RTO firm must, as soon as reasonably practicable following the request and in any case within 7 days of the request, repay to the borrower any charges paid by the borrower under or in connection with the RTO agreement.

CONC 5B.6.2G

1Taking the example in CONC 5B.2.12G, if the agreement provided that the total amount of charges that may be payable by the borrower were £600 (so exceeding the sum of the cash prices which was £500), the obligation to pay the £600 charges would be unenforceable, and where a customer had paid part or all of the £600, they would be entitled to have the amount of charges they had paid refunded by the RTO firm.