CONC 2.2 General principles for credit-related regulated activities

Principle 6 requires a firm to pay due regard to the interests of its customers and treat them fairly. Examples of behaviour by or on behalf of a firm which is likely to contravene Principle 6 include:

1. (1)

   targeting customers with regulated credit agreements which are unsuitable for them, by virtue of their indebtedness, poor credit history, age, health, disability or any other reason;

2. (2)

   subjecting customers to high-pressure selling, aggressive or oppressive behaviour, or unfair coercion;

3. (3)

   not allowing customers who are unable to make payments a reasonable time and opportunity to meet repayments;

4. (4)

   taking steps to repossess a customer's home, other than as a last resort.

   [Note: paragraph 7.14 of ILG and 6.3 of SCLG]

1. (1)

   In relation to CONC 2.2.3 R, an example of where a name may mislead is if the average customer of the firm is likely to be misled by the name of the firm.

2. (2)

   Examples of the matters concerning a firm's status or the nature of its business about which its name may mislead customers include:

   1. (a)

      the identity or nature of the firm;

   2. (b)

      its commercial or profit-seeking status;

   3. (c)

      its role, including any relationship with any other person;

   4. (d)

      the extent of its authority;

   5. (e)

      stating or implying that the firm is a public body or that it is related or connected in some way to a charitable, not-for-profit or governmental or local governmental organisation or to the courts;

   6. (f)

      the nature of the products or services supplied;

   7. (g)

      the cost of those products or services; and

   8. (h)

      the scale of the business including its geographical scope.

3. (3)

   A firm which operates under a variety of trading names should take particular care to ensure that customers are not misled as to the identity of the firm, or the nature or scale of the firm’s business. 4