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CONC 8.10 Conduct of business: providing credit information services

Application

CONC 8.10.1R

This section applies to:

  1. (1)

    a firm with respect to providing credit information services in relation to information relevant to the financial standing of an individual;

  2. (2)

    a firm with respect to the activities set out in article 36H(3)(e) to (h) of the Regulated Activities Order (Operating an electronic system in relation to lending) in relation to a borrower under a P2P agreement.

Conduct

CONC 8.10.2G

The Principles apply to a firm with respect to providing credit information services. A firm providing such services should, for example, set out clearly in any communication to a customer the extent of the service it is able to offer.

[Note: paragraph 3.46 of DMG]

CONC 8.10.3R

A firm must not:

  1. (1)

    claim to be able to remove negative but accurate information from a customer's credit file, including entries concerning adverse credit information and court judgments; or

    [Note: paragraph 3.47ai of DMG]

  2. (2)

    mislead a customer about the length of time that negative information is held on the customer's credit file or any official register; or

    [Note: paragraph 3.47aii of DMG]

  3. (3)

    claim that a new credit file can be created, such as by the customer changing address.

    [Note: paragraph 3.47aiii of DMG]

CONC 8.10.4G

It is likely to be a contravention of the Principles, for example Principles 6 and Principle 7, where a firm:

  1. (1)

    claims in a communication to a customer to be able to remove negative but accurate entries from a customer's credit file, but where the customer enquires about this service the customer is offered instead the firm's service as a lender or a credit broker; or

  2. (2)

    fails to inform a customer that a credit reference agency will not respond to the firm taking steps in relation to the customer's credit file and will only send the customer's credit file to the customer.

    [Note: paragraphs 3.47cd of DMG]