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CONC 7.10 Treatment of customers with mental capacity limitations

CONC 7.10.1R

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 7.10.2G

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 7.10.3G

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 7.10.4G

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.