CONC 5D.1 Purpose and application

1. (1)

   1In this chapter, “repeat use” refers to a pattern of overdraft use where the frequency and depth of use may result in high cumulative charges that are harmful to the customer or indicate that the customer is experiencing or at risk of financial difficulties.

2. (2)

   The expressions “arranged overdraft”, “excluded account”, “personal current account”, “private bank” and “unarranged overdraft” have the same meaning as set out at CONC 5C.

3. (3)

   Relevant information held by the firm includes:2

   1. (a)

      information from the customer’s personal current account; and2

   2. (b)

      information provided by the customer.2

4. (4)

   In (3)(a):2

   1. (a)

      the personal current account is the personal current account in respect of which the overdraft is provided;2

   2. (b)

      information from the customer’s personal current account may include, but is not limited to:2

      1. (i)

         a significant reduction in income into the account;

      2. (ii)

         new periodic payments being set up to repay new borrowing commitments, where the level of payments may suggest that the customer is at risk of financial hardship.2

1. (1)

   1Subject to (2), this chapter applies to a firm with respect to consumer credit lending and connected activities in relation to arranged overdrafts and unarranged overdrafts associated with personal current accounts.

2. (2)

   This chapter does not apply to:

   1. (a)

      a firm if all personal current accounts provided or offered by the firm are excluded accounts;

   2. (b)

      a firm in respect of any personal current account which may be used for a currency other than a currency of the United Kingdom;

   3. (c)

      a private bank; or

   4. (d)

      a credit union.

3. (3)

   To the extent that a rule in this chapter does not already apply to TP firms as a result of GEN 2.2.26R, it applies to them so far as the rule would have applied were it in effect before IP completion day.2

4. (4)

   To the extent that a rule in this chapter does not already apply to Gibraltar-based firms as a result of GEN 2.3.1R, it applies to them so far as the rule would have applied were it in effect before IP completion day.2

1This chapter applies to a firm with respect to activities carried on from an establishment maintained by it in the United Kingdom.