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CONC 7.19 Notice of default sums under P2P agreements

[Note: Until the end of 30 September 2014, transitional provisions apply to CONC 7.19: see CONC TP 4.5]

Application

CONC 7.19.1R

This section applies to a firm with respect to operating an electronic system in relation to lending in relation to a borrower under a P2P agreement.

CONC 7.19.2R
  1. (1)

    Subject to (2), this section does not apply where the P2P agreement provides for credit of less than £50.

  2. (2)

    Paragraph (1) does not apply where two or more P2P agreements in relation to the same borrower (but whether or not with the same lender) are entered into at or about the same time.

  3. (3)

    Where (2) applies, the firm's obligation in CONC 7.19.4 R applies as if all of the P2P agreements made with a borrower at or about the same time were a single agreement.

CONC 7.19.3R
  1. (1)

    In this section "default sum" means in relation to the borrower under a P2P agreement, a sum (other than a sum of interest) which is payable by the borrower under the agreement in connection with a breach of the agreement by the borrower.

  2. (2)

    But a sum is not a default sum in relation to the borrower simply because as a consequence of the breach of the agreement the borrower is required to pay the sum earlier than would otherwise have been the case.

Notice of default sums

CONC 7.19.4R

Where a default sum becomes payable under a P2P agreement by the borrower, the firm must give notice to the borrower within 35 days of a default sum becoming payable by the borrower.

CONC 7.19.5R

The notice required by CONC 7.19.4 R must contain:

  1. (1)

    a form of wording to the effect that it relates to default sums and is given in compliance with FCA rules;

  2. (2)

    the date of the notice;

  3. (3)

    a description of the agreement sufficient to identify it;

  4. (4)

    the firm's name, telephone number, postal address and, where appropriate, any other address;

  5. (5)

    the amount and nature of each default sum payable under the agreement which has not been the subject of a previous notice of default sums;

  6. (6)

    the date upon which each default sum referred to in the notice became payable under the agreement;

  7. (7)

    the following statement:

    "This notice does not take account of default sums which we have already told you about in another default sum notice, whether or not those sums remain unpaid."; and

  8. (8)

    the total amount of all the default sums included in the notice.