BCOBS 2.2B General information about overdrafts for personal current accounts

1. (1)

   12A firm must ensure that a direct offer financial promotion includes the information set out in BCOBS 2.2B.2R if:

   1. (a)

      it relates to an account, other than a current account mortgage which:

      1. (i)

         is a payment account within the meaning of the Payment Accounts Regulations; and

      2. (ii)

         does not fall within paragraph (2); and

   2. (b)

      it is made in writing.

2. (2)

   An account falls within this paragraph if it is offered on terms that:

   1. (a)

      an agreement which provides authorisation in advance for the banking customer to overdraw on the account cannot arise; and

   2. (b)

      either:

      1. (i)

         the account cannot become overdrawn without prior arrangement; or

      2. (ii)

         no charge is payable (by way of interest or otherwise) if the account becomes overdrawn without prior arrangement; and

   3. (c)

      no charge is payable where the firm refuses a payment due to lack of funds.

3. (3)

   In the case only of a direct offer financial promotion on paper, it is sufficient for the purposes of (1) if the direct offer financial promotion is accompanied by the required information on a separate sheet.

12The information required by this rule is:

1. (1)

   general information about overdrafts consisting of, so far as is relevant to the account or accounts that are the subject of the direct offer financial promotion:

   1. (a)

      an explanation that an overdraft is a borrowing or credit facility;

   2. (b)

      a general description of the nature and principal features of arranged and unarranged overdrafts associated with the personal current accounts offered by the firm;

   3. (c)

      a general explanation of the principal risks associated with:

      1. (i)

         overdrawing without prior arrangement; and

      2. (ii)

         opting out of an unarranged overdraft facility (if the firm’s terms and conditions permit this).

   4. (d)

      a general explanation of what may happen when a customer attempts to exceed an arranged overdraft limit or to overdraw in the absence of an arranged overdraft;

   5. (e)

      a general explanation of how the use of an arranged or unarranged overdraft might impact a banking customer’s credit file;

2. (2)

   information about the availability of the following tools and how a banking customer can access them:

   1. (a)

      the overdraft cost calculator required by BCOBS 8.2; and

   2. (b)

      (if BCOBS 8.3 applies to the firm in relation to the personal current account) the overdraft eligibility tool required by BCOBS 8.3.

1. (1)

   1 2The information required to be included under BCOBS 2.2B.2R must be:

   1. (a)

      concise;

   2. (b)

      in clear, simple language; and

   3. (c)

      presented prominently.

2. (2)

   The information required to be included under BCOBS 2.2B.2R must be presented together.