CONC 6.7.17 R to CONC 6.7.26 R also apply to a firm with respect to operating an electronic system in relation to lending in relation to a borrower under a P2P agreement and references in those provisions to a firm refinancing an agreement refer to any action taken by an operator of an electronic system in relation to lending which has the result that a P2P agreement is refinanced.
The action referred to in CONC 6.7.2 R should generally include:
A firm must set the minimum required repayment under a regulated credit agreement for a credit card or a store card at an amount equal to at least that amount which repays the interest, fees and charges that have been applied to the customer's account, plus one percentage of the amount outstanding.
[Note: paragraph 6.4 of ILG]
Where (1) applies and a firm applies interest to a period of more than one month, for the purpose of calculating the amount of the interest part of the minimum required repayment the firm may disregard any interest applied in respect of a period prior to the period of the statement in question.
[Note: paragraph 6.4 (box) of ILG]
Paragraph (1) applies to agreements made on or after 1 April 2011.
A firm under a regulated credit agreement for a credit card or a store card must provide a customer with the option to pay any amount they choose (equal to or more than the minimum required repayment but less than the full outstanding balance) on a regular basis, when making automated repayments.
[Note: paragraph 6.5 of ILG]
A firm under a regulated credit agreement for a credit card or store card must notify the customer of a proposed increase in the credit limit under the agreement at least 30 days before the increase comes into effect, except where: 1
[Note: paragraph 6.17 of ILG]
is two or more payments in arrears; or
has agreed a repayment plan with the firm in question; or
[Note: paragraph 6.10 (box) of ILG]
permit the customer to pay off the outstanding balance at the rate of interest before the proposed increase and over a reasonable period; and
give notice to the customer of the rights in (1) and (2).
[Note: paragraphs 6.11 and 6.19 of ILG]
Examples of valid reasons for increasing the rate of interest in CONC 6.7.14 R include:
recovering the genuine increased costs of funding the provision of credit under the agreement; and
a change in the risk presented by the customer which justifies the change in the interest rate, which would not generally include missing a single repayment or failing to repay in full on one or two occasions
[Note: paragraph 6.20 (box) of ILG]
“Exercise forbearance” means to refinance a regulated credit agreement where the result is that no interest accrues at any time in relation to that agreement or any which replaces, varies or supplements it from the date of the refinancing and either:
The term “refinance” within paragraph (1) does not include where under a regulated credit agreement repayable in instalments a customer requests a change in the regular payment date and as a result there is no charge or additional interest in connection with the change.
give or send an information sheet to the customer; and
where reasonably practicable to do so, bring the sheet to the attention of the customer before the refinance;
for the title and first sentence of the information sheet substitute:
“High-cost short-term loans
Failing to repay on time
Think carefully - rolling over or extending your loan may not be the best option and may make things worse.”; and
for the bullet points substitute: “
•Think carefully before borrowing more. Borrowing more money is likely to worsen your situation.
•Work out how much you owe. To do this, you will need to make a list of all the organisations you owe money to. A debt adviser can help you
•Put priority debts first. Some debts are more urgent than others because the consequences of not paying them can be more serious than for other debts, for example, mortgage, rent, council tax/ rates, or gas or electricity arrears. A debt adviser can help you to budget to keep your finances under control
Discuss options with your lender
•If you are having trouble paying back on time talk to your lender who can suggest ways to repay and make sure it is affordable for you.
•If you don’t, you may quickly face increased costs from interest or charges. Missed payments could affect your credit rating and make it more difficult to get credit in future.
Get free help and advice
•People that access advice resolve their issues more quickly than those that don’t and hundreds of thousands get free debt advice every year.
•Contact one of these organisations for free debt advice.”
in relation to an arrears sheet to be used by an operator of an electronic system in relation to lending:
for the bullet point headed “Work out how much money you owe” substitute:
“Work out how much money you owe. To do this, you will need to make a list of all those you owe money to. A debt adviser can help you.”;
for the title “ Discuss options with your lender” substitute
“Discuss options with your peer to peer lending platform (P2P platform)”;
for the bullet point which begins “If you are having trouble ?” substitute
“If you are having trouble paying back on time talk to your P2P platform who can suggest ways to repay and make sure it is affordable for you.”.
[Note: Until the end of 30 June 2014, transitional provisions apply to CONC 6.7.20 R: see CONC TP 32]
reducing or waiving payments unilaterally, for example, under a repayment plan, provided that this is explained to the customer.
[Note: paragraph 3.9miii of DCG]