CONC 6.3 Information to be provided on a current account agreement and on significant overdrawing

This section applies:

1. (1)

   to a firm with respect to consumer credit lending; and

2. (2)

   where a firm has entered into a current account agreement where:

   1. (a)

      there is a possibility that the account-holder may be allowed to overdraw on the current account without a pre-arranged overdraft or exceed a pre-arranged overdraft limit; and

   2. (b)

      if the account-holder did so, this would be a regulated credit agreement.

CONC 6.3.3 R does not apply where the overdraft or excess would be secured on land.

A firm must provide to the account-holder, in writing, the information in CONC 4.7.2R (2) at least annually.

[Note: section 74A of CCA (partial implementation of article 18 of the Consumer Credit Directive)]

1. (1)

   A firm must inform the account-holder in writing of the matters in (2) without delay where:

   1. (a)

      the account-holder overdraws on the current account without a pre-arranged overdraft, or exceeds a pre-arranged overdraft limit, for a period exceeding one month;

   2. (b)

      the amount of that overdraft or excess is significant throughout that period;

   3. (c)

      the overdraft or excess is a regulated credit agreement; and

   4. (d)

      the account-holder has not been informed in writing of the matters in (2) within that period.

2. (2)

   The matters in (1) are:

   1. (a)

      the fact that the account is overdrawn or the overdraft limit has been exceeded;

   2. (b)

      the amount of that overdraft or excess;

   3. (c)

      the rate of interest charged on it; and

   4. (d)

      any other charges payable by the customer in relation to it (including any penalties and any interest on those charges).

3. (3)

   For the purposes of (1)(b) the amount of the overdraft or excess is significant if:

   1. (a)

      the account-holder is liable to pay a charge for which he would not otherwise be liable; or

   2. (b)

      the overdraft or excess is likely to have an adverse effect on the customer's ability to receive further credit (including any effect on the information about the customer held by a credit reference agency); or

   3. (c)

      it otherwise appears significant, having regard to all the circumstances.

4. (4)

   Where the overdraft or excess is secured on land, (1)(a) is to be read as if the reference to one month were a reference to three months.

[Note: section 74B of CCA]

[Note: article 18 of the Consumer Credit Directive]