If a customer falls into arrears on a regulated mortgage contract, a firm must as soon as possible, and in any event within 15 business days of becoming aware of that fact, provide the customer with the following in a durable medium:
- (1) 3
a list of the due payments either missed or only paid in part;
the total sum of the payment shortfall;
the charges incurred as a result of the payment shortfall;
the total outstanding debt, excluding charges that may be added on redemption; and
an indication of the nature (and where possible the level) of charges the customer is likely to incur unless the payment shortfall is cleared.
A firm may provide the information in MCOB 13.4.1 R (2), (3), (4), (5) and (6) orally, for example by telephone, but must provide the information in a durable medium with a copy of the Money Advice Service3 information sheet “Problems3 paying your mortgage” 23within 15 business days of becoming aware of the customer's account falling into arrears.23
Where a firm provides the information in MCOB 13.4.1 R when a payment shortfall occurs but before the customer's account falls into arrears, it need not repeat the provision of the information in MCOB 13.4.1 R when the customer's account falls into arrears.
If a customer's account has previously fallen into arrears within the past 12 months (and at that time the customer received the disclosure required by MCOB 13.4.1 R), the arrears have been cleared and the customer's account falls into arrears on a subsequent occasion a firm must either:
issue a further disclosure in compliance with MCOB 13.4.1 R; or
provide a statement, in a durable medium, of the payments due, the actual payment shortfall, any charges incurred and the total outstanding debt excluding any charges that may be added on redemption, together with information as to the consequences, including repossession, if the payment shortfall is not cleared.
provide a written update of the information required by MCOB 13.4.1 R(2), (3), (4), (5) and (6);
clearly state the action that will be taken with regard to repossession.