CONC 4.8 Pre-contract: unfair business practices: consumer credit lending
Application
This section applies to a firm carrying on consumer credit lending.
Unfair business practices
A firm must not unfairly encourage, incentivise or induce a customer to enter into a regulated credit agreement quickly without allowing the customer time to consider the pre-contract information under section 55 of the CCA and the explanations provided under CONC 4.2.5 R.
[Note: paragraph 5.10 of ILG]
Stating an end date for a promotion would not amount to the behaviour in CONC 4.8.2 R.
[Note: paragraph 5.10 (box) of ILG]
Merely offering a customer more credit than the customer requested would not amount to the behaviour in CONC 4.8.4 R where:
- (1)
the offer of the higher amount was based on a proper creditworthiness assessment1; or
- (2)
the firm offers more advantageous terms, conditions or prices to customers for larger loans, provided that such offers are sufficiently transparent and a proper creditworthiness assessment 1has been carried out;
and the customer was not pressurised or unfairly coerced into accepting the higher amount of credit.
[Note: paragraph 5.11 (box) of ILG]
A firm must not lead a customer to believe that the customer's current debt repayments can be reduced under a regulated credit agreement over the same term when this is not the case.
[Note: paragraph 5.13 of ILG]