BCOBS 8.4 Alerts

1. (1)

   23Subject to BCOBS 8.4.2R this section applies to a firm in relation to personal current accounts held with the firm under a trading name if 70,000 or more personal current accounts are held with the firm under that trading name.

2. (2)

   This section does not apply to excluded personal current accounts.

23Where a firm has notified a banking customer in accordance with BCOBS 8.4.6R that they will receive alerts under this section in respect of a personal current account, this section continues to apply to the firm in respect of that personal current account, even if it would not apply to the firm under BCOBS 8.4.1R, until:

1. (1)

   the firm has notified the banking customer in writing that they will no longer receive the alerts they were previously notified of; and

2. (2)

   28 days have elapsed since the firm sent the notification.

1. (1)

   23Except as otherwise provided for in BCOBS 8.4.5R, a firm must ensure that in relation to each personal current account held by a banking customer, the banking customer is, by the date specified in (2), enrolled to receive:

   1. (a)

      arranged overdraft alerts in accordance with BCOBS 8.4.12R;

   2. (b)

      unarranged overdraft alerts in accordance with BCOBS 8.4.13R;

   3. (c)

      attempt to overdraw without prior arrangement alerts in accordance with BCOBS 8.4.15R; and

   4. (d)

      where BCOBS 8.4.16R applies, the additional alerts required under that rule.

2. (2)

   A banking customer is enrolled to receive alerts in relation to a personal current account when:

   1. (a)

      the firm has put in place arrangements that enable it to comply with this section; and

   2. (b)

      those arrangements are operational in respect of that personal current account.

3. (3)

   Where a personal current account is held by two or more banking customers jointly, a firm must enrol each banking customer in the alerts required under this section.

4. (4)

   A firm must comply with (1) not later than whichever is the latest of:

   1. (a)

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

   2. (b)

      three working days after the agreement for the personal current account is concluded;

   3. (c)

      where BCOBS 8.4.4R(1) applies, ten working days after:

      1. (i)

         the firm obtains a mobile telephone number from the banking customer; or

      2. (ii)

         if the firm provides alerts by push notification from a mobile banking application, the banking customer is able to receive alerts in this way; and

   4. (d)

      where a personal current account had no arranged overdraft at the time it was opened (and BCOBS 8.4.5R(2) therefore applied at that time) and an arranged overdraft was subsequently agreed in relation to that personal current account, three working days after the agreement for the arranged overdraft is concluded.

1. (1)

   23Where a firm is required to enrol a banking customer in alerts under this section but the firm:

   1. (a)

      does not hold a mobile telephone number for the banking customer; or

   2. (b)

      has reasonable grounds to believe that the mobile telephone number held in respect of the banking customer is no longer used by the banking customer;

   the firm must take reasonable steps to obtain a mobile telephone number to which alerts may be sent to that banking customer within a reasonable time.

2. (2)

   Before opening a new personal current account, a firm must:

   1. (a)

      take reasonable steps to obtain the banking customer’s mobile telephone number for the purposes of enrolling them in alerts relating to that personal current account; or

   2. (b)

      where the firm already holds a mobile telephone number for the banking customer, seek the banking customer’s confirmation that the mobile telephone number held by the firm is the banking customer’s preferred mobile telephone number for the purposes of receiving alerts relating to that personal current account.

3. (3)

   Where a banking customer declines to provide or confirm a mobile telephone number when requested to do so under (1) or (2) the firm must warn the banking customer that they will not be able to receive alerts about their overdraft use and as a result may incur avoidable charges.

4. (4)

   This rule does not apply if:

   1. (a)

      the firm provides alerts by push notification from a mobile banking application and the banking customer is able to receive alerts in this way; or

   2. (b)

      the banking customer has elected to receive alerts in respect of that personal current account by an alternative means in accordance with BCOBS 8.4.8R(3).

1. (1)

   23A firm is not required to enrol a banking customer to receive alerts under BCOBS 8.4.3R in the circumstances set out in (2) to (4).

2. (2)

   A firm is not required to enrol a banking customer to receive arranged overdraft alerts in accordance with BCOBS 8.4.12R in respect of a personal current account that has no arranged overdraft.

3. (3)

   A firm is not required to enrol a banking customer to receive a particular type of alert in respect of a personal current account if that banking customer already receives an alert or alerts that perform at least an equivalent function.

4. (4)

   A firm may elect not 5 to enrol a banking customer to receive alerts 5in respect of a personal current account if that banking customer has 5requested not to receive an alert or alerts relating to that banking customer’s overdraft usage5.

5. (5)

   For the purposes of (4), a banking customer is not to be treated as having requested not to receive an alert merely because it has been previously offered to them.

1. (1)

   23A firm must notify a banking customer who has been (or will be) enrolled to receive alerts that they have been (or will be) so enrolled.

2. (2)

   When giving such notification the firm must also inform the banking customer of any options available to customise the alerts the banking customer receives to suit the banking customer’s needs and the method or methods available for doing so.

23A reference in this section to an alert being sent in respect of a personal current account is to the firm completing all steps necessary to initiate the sending of an alert:

1. (1)

   by SMS text message to the banking customer’s mobile telephone number;

2. (2)

   by push notification from a mobile banking application; or

3. (3)

   by an alternative method if:

   1. (a)

      that method provides for secure and reliable receipt by the banking customer in a comparable timeframe from the point when the firm sends the alert to the methods provided for in (1) or (2); and

   2. (b)

      the banking customer has expressly and freely opted to receive alerts by way of such delivery method instead of the methods provided for in (1) or (2).

1. (1)

   213A firm must put in place arrangements that allow a banking customer to choose not to receive the alerts required by BCOBS 8.4.12R, BCOBS 8.4.13R and BCOBS 8.4.16R.

2. (2)

   A firm may restrict a banking customer’s ability to choose not to receive the alerts required by BCOBS 8.4.13R so that the banking customer can choose not to receive those alerts only if they also choose not to receive alerts under BCOBS 8.4.15R.

3. (3)

   A firm must ensure that any arrangements put in place for banking customers to choose not to receive alerts, or to otherwise customise alerts, are easily accessible free of charge, clear and straightforward.

4. (4)

   A firm must warn a banking customer who chooses not to receive some or all alerts that they will not receive alerts about their overdraft use and as a result may incur avoidable charges.

1. (1)

   23A firm must send an alert to a banking customer if the firm:

   1. (a)

      knows based on information available to it that the banking customer’s personal current account is making use of arranged overdraft; or

   2. (b)

      is reasonably able to determine that, taking into account information it has access to on transactions due to be settled, the banking customer’s personal current account will make use of arranged overdraft that day in the absence of:

      1. (i)

         action by the banking customer; or

      2. (ii)

         a transaction other than those the firm is aware of.

2. (2)

   The alert must communicate to the banking customer in plain simple language:

   1. (a)

      the reason why the alert has been sent;

   2. (b)

      that the banking customer will or may incur charges if they become or remain overdrawn, if this is the case.

1. (1)

   23A firm must send an alert to a banking customer if the firm:

   1. (a)

      knows based on information available to it that the banking customer’s personal current account has entered unarranged overdraft;

   2. (b)

      is reasonably able to determine that, taking into account information it has access to on transactions due to be settled, the banking customer’s personal current account will enter unarranged overdraft in the absence of:

      1. (i)

         action by the banking customer; or

      2. (ii)

         a transaction other than those the firm is aware of.

2. (2)

   The alert must communicate to the banking customer in plain simple language:

   1. (a)

      the reason why the alert has been sent;

   2. (b)

      that the banking customer will or may incur charges if they enter or remain in unarranged overdraft, if this is the case; and

   3. (c)

      that the banking customer has a period of time during which they have an opportunity to take action to avoid or reduce charges, and specify:

      1. (i)

         the actions which may be taken; and

      2. (ii)

         the time by which the customer must take such action to reduce or avoid the charge or charges.

1. (1)

   23A firm must send an alert to a banking customer if the firm:

   1. (a)

      knows based on information available to it that the banking customer has incurred a charge for attempting to enter unarranged overdraft but has not entered unarranged overdraft because the firm declined to process the transaction; or

   2. (b)

      is reasonably able to determine that, taking into account information it has access to on transactions due to be settled, a situation described in (a) will occur that day in the absence of:

      1. (i)

         action by the banking customer; or

      2. (ii)

         a transaction other than those the firm is aware of.

2. (2)

   The alert must communicate to the banking customer in plain simple language:

   1. (a)

      the reason why the alert has been sent; and

   2. (b)

      that the banking customer has incurred or may incur charges, if this is the case.

1. (1)

   23This rule applies to a firm in relation to an authorised non-business overdraft agreement where the terms of that agreement provide for very significantly different levels of charge for credit in respect of different tiers of drawdown under the facility, other than where one of the tiers is free of charge.

2. (2)

   Where this rule applies, the firm must send an alert to the banking customer if the firm:

   1. (a)

      knows based on information available to it that the banking customer’s personal current account has entered a different tier of drawdown under the facility where very significant additional costs are associated with that tier of drawdown; or

   2. (b)

      is reasonably able to determine that, taking into account information it has access to on transactions due to be settled, the circumstances in (a) will occur that day in the absence of:

      1. (i)

         action by the banking customer; or

      2. (ii)

         a transaction other than those the firm is aware of.

3. (3)

   The alert must communicate to the banking customer in plain simple language:

   1. (a)

      the reason why the alert has been sent;

   2. (b)

      that the banking customer has incurred or may incur charges; and

   3. (c)

      that the banking customer has a period of time during which they have an opportunity to take action to avoid or reduce charges, and specify:

      1. (i)

         the actions which may be taken; and

      2. (ii)

         the time by which the banking customer must take such action to reduce or avoid the charge or charges.

23Where a firm has sent an alert under BCOBS 8.4.12R to 8.4.16R it is not required to send a further alert in respect of the same personal current account under the same rule unless, since the last alert under that rule was sent:

1. (1)

   in respect of alerts sent under BCOBS 8.4.12R(1)(a), any arranged overdrawing has been repaid;

2. (2)

   in respect of alerts sent under BCOBS 8.4.12R(1)(b), either:

   1. (a)

      the personal current account did not enter arranged overdraft on the day the alert was sent; or

   2. (b)

      the personal current account entered arranged overdraft but any arranged overdrawing has been repaid;

3. (3)

   in respect of alerts sent under BCOBS 8.4.13R(1)(a), any unarranged overdrawing has been repaid;

4. (4)

   in respect of alerts sent under BCOBS 8.4.13R(1)(b), either:

   1. (a)

      the personal current account did not enter unarranged overdraft on the day the alert was sent; or

   2. (b)

      the personal current account entered unarranged overdraft but any unarranged overdrawing has been repaid; or

5. (5)

   in respect of alerts sent under BCOBS 8.4.15R, the obligation to send the alert arises because of a further attempt to enter unarranged overdraft;

6. (6)

   in respect of alerts sent under BCOBS 8.4.16R(2)(a), any arranged overdrawing within the tier of drawdown that significant additional costs are associated with has been repaid; and

7. (7)

   in respect of alerts sent under BCOBS 8.4.16R(2)(b), either

   1. (a)

      the personal current account did not enter the tier of drawdown that significant additional costs are associated with on the day the alert was sent; or

   2. (b)

      the personal current account entered that tier of drawdown but any arranged overdrawing within that tier has been repaid.

1. (1)

   23Subject to (2) to (4), a firm must send an alert required by this section as soon as practicable after the circumstances giving rise to the obligation to send the alert arise.

2. (2)

   Where the obligation to send an alert or alerts is brought about by one or more scheduled payments, the firm must:

   1. (a)

      where the alert is required under BCOBS 8.4.13R or BCOBS 8.4.15R, send an alert no later than 10:00 am on the day when the obligation to send the alert arises;

   2. (b)

      where the alert is required under BCOBS 8.4.12R or BCOBS 8.4.16R, send an alert no later than 12:00 midday on the day when the obligation to send the alert arises; and

   3. (c)

      treat all scheduled payments due to be debited from the personal current account on a single day as a single transaction for the purposes of (3).

3. (3)

   Where a transaction would, apart from this paragraph, give rise to an obligation to send multiple alerts under different rules in this section, a firm must only send the alert most relevant to the anticipated final balance of the personal current account after the transaction.

4. (4)

   Where a series of transactions that the firm becomes aware of in rapid succession would, apart from this paragraph, give rise to an obligation to send multiple alerts under different rules in this section, a firm may treat them as a single transaction for the purposes of (3).

5. (5)

   Nothing in this section requires a firm to send an alert where doing so would be a breach of another regulatory requirement applicable to the firm.

6. (6)

   In this rule, a “scheduled payment” is a payment where the firm has knowledge of both the amount and date of the payment on the day before it is to be debited from the personal current account.