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 7.10 Treatment of customers with mental capacity limitations

CONC 7.10.1RRP

A firm must suspend the pursuit of recovery of a debt from a customer when:

  1. (1)

    the firm has been notified that the customer might not have the mental capacity to make relevant financial decisions about the management of the customer's debt and/or to engage in the debt recovery process at the time; or

  2. (2)

    the firm understands or ought reasonably to be aware that the customer lacks mental capacity to make relevant financial decisions about the management of the customer's debt and/or to engage in the debt recovery process at the time.

[Note: paragraphs 3.7r of DCG and 7.13 of ILG]

CONC 7.10.2GRP

A firm should allow a customer or a person acting on behalf of the customer a reasonable period of time to provide evidence as to the likely impact of any mental capacity limitation on the customer's ability to engage with the firm.

[Note: paragraph 3.7r (box) of DCG]

CONC 7.10.3GRP

CONC 7.10.1 R does not prevent a firm from pursuing the debt through a responsible third party acting on behalf of the customer, where the customer has given prior consent, for example, pursuant to a registered lasting power of attorney.

[Note: paragraph 3.7r (box) of DCG]

CONC 7.10.4GRP

Firms should note CONC 7.2.1 R (and its accompanying guidance) which requires firms to establish and implement policies and procedures for the fair and appropriate treatment of particularly vulnerable customers.