BCOBS 8.3 Eligibility tool

1. (1)

   12This section, apart from BCOBS 8.3.2R, applies to a firm in relation to a trading name if:

   1. (a)

      70,000 or more personal current accounts are held with the firm under that trading name; and

   2. (b)

      the firm offers personal current accounts other than excluded accounts under that trading name.

2. (2)

   BCOBS 8.3.2R applies to a firm that this chapter applies to: see BCOBS 8.1.4R, BCOBS 8.1.5G and BCOBS 8.1.6G.

12A firm must not publish a tool that purports to perform the function of an eligibility tool as described in BCOBS 8.3.3R(1) unless the firm complies with the rules in this section as though the firm were a firm to which this section (apart from this rule) applied in respect of that tool.

1. (1)

   12A firm must make available a tool that enables a potential banking customer to obtain an indication tailored to the individual circumstances of that banking customer of the likelihood that the firm would offer an arranged overdraft of a particular amount to that banking customer if the banking customer opened a personal current account with the firm (“the eligibility tool”):

   1. (a)

      for each trading name to which this section applies; and

   2. (b)

      beginning on the day one year after the first time 70,000 or more personal current accounts are held with the firm under that trading name.

2. (2)

   A firm must make the eligibility tool available continuously and in an easily accessible location on the website for each trading name in respect of which this section applies except in the circumstances provided for in (3).

3. (3)

   A firm that offers personal current account opening services exclusively through a mobile telephone application may instead make the eligibility tool required under this rule available through that mobile telephone application, but must refer prominently on its website to the availability of the tool through that application.

4. (4)

   A firm should choose how and where to make the eligibility tool available so as to be consistent with how the firm ordinarily communicates with its customers and select a method most likely to come to the attention of its customers and potential customers.

5. (5)

   The eligibility calculator or the reference to it must be published on the firm’s website alongside the information required to be published under BCOBS 4.4.12R.

6. (6)

   A firm must either:

   1. (a)

      present the eligibility tool together with the cost calculator required under BCOBS 8.2; or

   2. (b)

      include in close proximity to the eligibility tool a prominent indication of the existence of the cost calculator required under BCOBS 8.2 and a link enabling a banking customer to access that cost calculator.

12The eligibility tool must be accompanied by a prominent statement that:

1. (1)

   the output of the eligibility tool is dependent on the accuracy of the information input by the banking customer;

2. (2)

   the output of the eligibility tool is indicative only and does not guarantee that the banking customer will be offered an arranged overdraft of the amount selected or at all;

3. (3)

   any overdraft offered by the firm will depend upon a full eligibility assessment that may affect whether the banking customer is able to obtain an arranged overdraft and of what amount; and

4. (4)

   use of the eligibility tool will not adversely affect the banking customer’s credit file.

1. (1)

   12The eligibility tool must allow the banking customer to input or select the level of arranged overdraft that the banking customer wants to obtain an indication of likelihood of eligibility for.

2. (2)

   The eligibility tool may require the banking customer to:

   1. (a)

      input such personal details as the firm specifies; and

   2. (b)

      consent to the firm conducting a credit reference agency search in respect of the banking customer of a kind that will not leave evidence of an application on the banking customer’s credit file.

3. (3)

   The eligibility tool must enable a banking customer to assess eligibility for different overdraft amounts on the same occasion without re-entering other information.

4. (4)

   The eligibility tool may limit the amount that can be entered under (1). Any limit imposed by the tool must be no lower than:

   1. (a)

      £5,000; or

   2. (b)

      (if lower) the largest credit limit that the firm is willing to offer to any banking customer by way of arranged overdraft associated with a personal current account.

12A firm must not, without the banking customer’s consent, use the information input into the eligibility tool by the banking customer for any purpose other than:

1. (1)

   generating the output of the eligibility calculator;

2. (2)

   monitoring the accuracy of the eligibility calculator; or

3. (3)

   monitoring, preventing and detecting financial crime.

12The output of the eligibility tool must be provided promptly and must:

1. (1)

   represent a reasonable estimate by the firm of the probability that it would offer the banking customer an overdraft of the amount selected if the banking customer were to apply for it; and

2. (2)

   be communicated in a clear, fair and not misleading way.

1. (1)

   12A firm must have regard to its process for approving an overdraft for a banking customer when selecting the factors considered and process used by the eligibility tool to produce its output, but it is not required to duplicate that process.

2. (2)

   A firm’s eligibility tool must use only factors that:

   1. (a)

      could have a significant impact on:

      1. (i)

         the likelihood of the firm approving a banking customer for an arranged overdraft; or

      2. (ii)

         the amount of arranged overdraft approved;

   2. (b)

      can be assessed in an automatic manner; and

   3. (c)

      can be assessed based on information that:

      1. (i)

         is readily available to the banking customer and proportionate to require prior to a full application being made;

      2. (ii)

         is readily available to the firm; or

      3. (iii)

         the firm can readily obtain by conducting a credit reference agency search in respect of the banking customer of a kind that does not leave evidence of an application on the banking customer’s credit file.

3. (3)

   A firm should select the information it requires a banking customer to provide when using the eligibility tool, and the factors considered and process used by the eligibility tool to produce its output so as to achieve a proportionate balance between:

   1. (a)

      the accuracy of the output of the tool; and

   2. (b)

      the amount of information a banking customer is required to input.

4. (4)

   A firm is not required to verify the accuracy of any information input by the banking customer into the eligibility tool.

1. (1)

   12A firm must establish a process for monitoring the accuracy of the output of the eligibility tool.

2. (2)

   A firm must review the factors considered and process used by the eligibility tool to produce its output whenever:

   1. (a)

      there is a material change to the firm’s policies or processes for approving an overdraft; or

   2. (b)

      the firm’s monitoring of the eligibility tool reveals that the eligibility tool’s outputs deviate to a significant degree from those expected.