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    2023-07-28

CONC 7.1 Application

Who? What?

CONC 7.1.1RRP

1This chapter applies, unless otherwise stated in or in relation to a rule, to:

  1. (1)

    a firm with respect to consumer credit lending;

  2. (2)

    a firm with respect to consumer hiring;

  3. (3)

    a firm with respect to operating an electronic system in relation to lending, in relation to a borrower under a P2P agreement;

  4. (4)

    a firm with respect to debt collecting.

CONC 7.1.2GRP

The following sections provide otherwise for application:

  1. (1)

    CONC 7.12 (lenders' responsibilities in relation to debt) applies only to firms in respect of consumer credit lending or in respect of activity that would be consumer credit lending but for article 60C(4A) of the Regulated Activities Order3;

  2. (2)

    CONC 7.17 to CONC 7.19 apply only to firms operating electronic systems in relation to lending in relation to borrowers under P2P agreements as set out in those sections.

CONC 7.1.3GRP
  1. (1)

    In accordance with CONC 1.2.2 R firms must ensure that their employees and agents comply with CONC and must take reasonable steps to ensure that other persons acting on the firm's behalf act in accordance with CONC.

  2. (2)

    The rule in CONC 1.2.2 R is particularly important in relation to the requirements in CONC 7, for example, in dealing with an individual from whom the person referred to in the rule is seeking to collect a debt.

  3. (3)

    In this chapter the expression “arrears” includes any shortfall in one or more payment due from a customer under an agreement to which the chapter applies.

CONC 7.1.3AR

3In this chapter, the expression “regulated credit agreement” includes a credit agreement that is an exempt agreement by virtue of article 60C(4A) of the Regulated Activities Order except for the purposes of the following:

  1. (1)

    CONC 7.5.1G;

  2. (2)

    CONC 7.6; and

  3. (3)

    CONC 7.7.4G.

Agreements where there is a guarantor etc

CONC 7.1.4RRP
  1. (1)

    2In this chapter, except for CONC 7.6.15AG:

    1. (a)

      a reference to a borrower, a customer or a hirer includes a reference to an individual other than the borrower or the hirer (in this chapter, referred to as “the guarantor”) who has provided a guarantee or an indemnity (or both) in relation to:

      1. (i)

        a regulated credit agreement; or

      2. (ii)

        a regulated consumer hire agreement; or

      3. (iii)

        a P2P agreement in respect of which the borrower is an individual;

      where it would not do so but for this rule;

    2. (b)

      a reference (other than in this rule) to a credit agreement, a consumer hire agreement or a P2P agreement includes a reference to the document that includes the guarantee or the indemnity (or both);

    3. (c)

      a reference to a repayment includes a reference to a payment due under the guarantee or under the indemnity;

    4. (d)

      a reference to paying or repaying the debt includes a reference to making (in whole or in part) a payment due under the guarantee or under the indemnity; and

    5. (e)

      a reference to the adequate explanation required by CONC 4.6.2R includes a reference to the adequate explanation required by CONC 4.6.5R.

  2. (2)

    For the purposes of this rule, a guarantee does not include a legal or equitable mortgage or a pledge.

  3. (3)

    This rule does not apply to CONC 7.3.1G, CONC 7.4.1R, CONC 7.4.2R, CONC 7.5.1G, CONC 7.6.2AR, CONC 7.6.2BG, CONC 7.15.3G, CONC 7.15.4R, CONC 7.15.5G, or CONC 7.17 to CONC 7.19.

  4. (4)

    3A reference in this chapter to a customer or borrower does not include the guarantor under a credit agreement that is an exempt agreement by virtue of article 60C(4A) of the Regulated Activities Order.

CONC 7.1.5GRP

2In relation to CONC 7.1.4R(1)(a), firms are reminded that the definitions of customer and borrower include, in relation to debt collecting and debt administration, a person providing a guarantee or indemnity under the agreement (other than a credit agreement that is an exempt agreement by virtue of article 60C(4A) of the Regulated Activities Order)3. (See CONC 7.3.1G(2) and CONC 7.3.1G(3).)3.