The following sections provide otherwise for application:
CONC 7.12 (lenders' responsibilities in relation to debt) applies only to firms in respect of consumer credit lending or in respect of activity that would be consumer credit lending but for article 60C(4A) of the Regulated Activities Order3;
In accordance with CONC 1.2.2 R firms must ensure that their employees and agents comply with CONC and must take reasonable steps to ensure that other persons acting on the firm's behalf act in accordance with CONC.
The rule in CONC 1.2.2 R is particularly important in relation to the requirements in CONC 7, for example, in dealing with an individual from whom the person referred to in the rule is seeking to collect a debt.
In this chapter the expression “arrears” includes any shortfall in one or more payment due from a customer under an agreement to which the chapter applies.
a reference to a borrower, a customer or a hirer includes a reference to an individual other than the borrower or the hirer (in this chapter, referred to as “the guarantor”) who has provided a guarantee or an indemnity (or both) in relation to:
where it would not do so but for this rule;
a reference to a repayment includes a reference to a payment due under the guarantee or under the indemnity;
a reference to paying or repaying the debt includes a reference to making (in whole or in part) a payment due under the guarantee or under the indemnity; and
3A reference in this chapter to a customer or borrower does not include the guarantor under a credit agreement that is an exempt agreement by virtue of article 60C(4A) of the Regulated Activities Order.
2In relation to CONC 7.1.4R(1)(a)3, firms are reminded that the definitions of customer and borrower include, in relation to debt collecting and debt administration, a person providing a guarantee or indemnity under the agreement (other than a credit agreement that is an exempt agreement by virtue of article 60C(4A) of the Regulated Activities Order)3. (See CONC 7.3.1G(2) and CONC 7.3.1G(3)3.)