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  4. Point in time
    2020-12-31

GEN 7.1 1Application

Who? Where?

GEN 7.1.1 R RP

This chapter applies to a firm carrying on activities from an establishment in the United Kingdom. In relation to regulated claims management activities, this chapter applies with respect to activity carried on in Great Britain, even if the establishment from which it is carried on is not located in the UK (see PERG 2.4A).4

What?

GEN 7.1.2 R RP

This chapter applies where a firm operates a telephone line for the purpose of enabling a consumer to contact the firm in relation to a contract that has been entered into with the firm in the course of, or in connection with:

  1. (1)

    regulated activities; or

  2. (2)

    payment services.

MiFID firm exception

GEN 7.1.3 R RP

This chapter does not apply for telephone lines provided in respect of contracts relating to the MiFID business of a firm.

Payment services exception

GEN 7.1.4 R RP

This chapter does not apply to2 telephone lines which:

  1. (1)

    enable payment service users to request information to which paragraph (2) of regulation 562 of the Payment Services Regulations applies; or

  2. (2)

    relate to the termination of a framework contract, unless:

    1. (a)

      the framework contract was concluded either for a fixed period of more than 12 months or for an indefinite period; and

    2. (b)

      at least 12 months of the framework contract have expired.

Complaints exception

GEN 7.1.5 R RP

This chapter does not apply for telephone lines provided by a respondent for the purpose of enabling an eligible complainant to submit a complaint.

GEN 7.1.6 G RP

DISP 1.3 contains rules that apply for telephone lines provided by respondents for the purpose of enabling eligible complainants to submit complaints to a respondent.

Application to firms carrying on credit-related regulated activities

GEN 7.1.7 G RP

An effect of GEN 7.1.1R and GEN 7.2.1R is that this chapter applies for contracts by which a firm provides, or agrees to provide, credit broking services. In particular, this chapter applies where a telephone line is operated by a credit broker so that following the entry into a contract for the provision of credit broking services, a customer is able to contact the firm with a view to entering into a credit agreement or a consumer hire agreement.

Related consumer credit rules

GEN 7.1.8 G RP

The following provisions of CONC continue to apply where a firm operates a telephone line in respect of the relevant credit-related regulated activities but the call charges rule does not apply (for example, where a telephone line is operated for the purpose of enabling a consumer to contact the firm before a contract has been entered into):

  1. (1)

    CONC 2.5.8R and CONC 2.5.9G (unfair business practices: credit broking);

  2. (2)

    CONC 2.6.3R and CONC 2.6.4G (unfair business practices: debt counselling, debt adjusting and providing credit information services);

  3. (3)

    CONC 3.3.9G (financial promotions and communications);

  4. (4)

    CONC 3.9.5R and CONC 3.9.6G (financial promotions and communications in relation to debt counselling and debt adjusting);

  5. (5)

    CONC 7.9.5R (arrears, default and recovery); and

  6. (6)

    CONC 8.7.6R (charging for debt counselling, debt advice and related services).

Regulated benchmark administrators

GEN 7.1.9 R

3This chapter does not apply to telephone lines provided in respect of contracts relating to a firm’s administration of a benchmark.

GEN 7.2 1Call charges

Call charges rule

GEN 7.2.1 R RP

A firm which operates a telephone line for the purpose of enabling a consumer to contact the firm in relation to a contract that has been entered into with the firm, must not bind the consumer to pay more than the basic rate for the telephone call.

GEN 7.2.2 G RP

The contract entered into with the firm may be in writing or otherwise.

Meaning of basic rate

GEN 7.2.3 R RP

For the purposes of the call charges rule, the basic rate is the simple cost of connection and must not provide the firm with a contribution to its costs or revenues.

GEN 7.2.4 R RP

The following numbers, if used by firms, would comply with the call charges rule:

  1. (1)

    geographic numbers or numbers which are always set at the same rate, which usually begin with the prefix 01, 02 or 03;

  2. (2)

    calls which can be free of charge to call, for example 0800 and 0808 numbers; and

  3. (3)

    standard mobile numbers, which usually begin with the prefix 07, provided that the firm ordinarily uses a mobile number to receive telephone calls.

GEN 7.2.5 R RP

The following numbers, if used by firms, would not comply with the call charges rule:

  1. (1)

    premium rate numbers that begin with the prefix 09;

  2. (2)

    other revenue sharing numbers in which a portion of the call charge can be used to either provide a service or make a small payment to the firm, such as telephone numbers that begin with the prefix 084 or 0871, 0872 or 0873; and

  3. (3)

    telephone numbers that begin with the prefix 0870 as the cost of making a telephone call on such numbers can be higher than a geographic cost and will vary depending on the consumer’s telephone tariff.