CONC 4.7 Information to be provided on entering a current account agreement

This section applies to a firm with respect to consumer credit lending.

1. (1)

   When a firm enters 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;

   the current account agreement must contain the information in (2) and (3).[Note: section 74A(1) of CCA]

2. (2)

   The information required by (1) is:

   1. (a)

      the rate of interest charged on the amount by which the account-holder overdraws on the current account or exceeds the pre-arranged overdraft limit;

   2. (b)

      any conditions applicable to that rate;

   3. (c)

      any reference rate on which that rate is based;

   4. (d)

      information on any changes to that rate of interest (including the periods that the rate applies to and any conditions or procedure applicable to changing that rate); and

   5. (e)

      any other charges payable by the account holder under the agreement (and the conditions under which those charges may be varied).[Note: section 74A(2) of CCA]

3. (3)

   Where different rates of interest are charged in different circumstances, the firm must provide the information in (2)(a) to (d) in respect of each rate. [Note: section 74A(4) of CCA]

[Note: article 18 of the Consumer Credit Directive]