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Timeline guidance

MCOB 13.5 Dealing with a customer in arrears or with a 1sale shortfall on a regulated mortgage contract1

Statements

MCOB 13.5.1RRP

Where an account is in arrears (whether or not the shortfall is attracting charges)4, a firm must provide the customer with a regular written statement (at least once a quarter) of the payments due, the actual payment shortfall, the debt and, where relevant, the charges incurred4.

221122
MCOB 13.5.2GRP
  1. (1)

    For the purpose of MCOB 13.5.1 R, charges 4include all charges and fees levied directly as a result of the account falling into arrears. This includes charges such as monthly administrative charges, legal fees and interest. 4

  2. (2)

    In determining the frequency for providing statements in accordance with MCOB 13.5.1 R, a firm should have regard to the application of new charges and the number of transactions on the customer's account.

  3. (3)

    [deleted]2

    21222
  4. (4)

    Information provided should cover the period since the last statement. Firms may use the annual statement to comply with MCOB 13.5.1 R, in which case the annual statement will need to be supplemented to include the actual payment shortfall2.

    2

Pressure on customers

MCOB 13.5.3RRP

A firm must not put pressure on a customer through excessive telephone calls or correspondence, or by contact at an unreasonable hour.

MCOB 13.5.4GRP

In MCOB 13.5.3 R, a reasonable hour will usually fall between 8 am and 9 pm. Firms should also have regard to the circumstances of the customer and any knowledge they have of the customer's work pattern or religious faith which might make it unreasonable to contact the customer during these hours.

MCOB 13.5.5GRP

In MCOB 13.5.3 R, putting pressure on a customer includes:

  1. (1)

    the use of documents which resemble a court summons or other official document, or are intended to lead the customer to believe that they come from or have the authority of a court (which might in any event constitute a criminal offence under the County Courts Act 1984 or section 40 of The Administration of Justice Act 1970); and

  2. (2)

    the use of documents containing unfair, unclear or misleading information intended to coerce the customer into paying. A firm should also have regard to Section 1 of the Malicious Communications Act 1988 which establishes a criminal offence in respect of letters sent which convey a threat or false information with intent to cause distress or anxiety.

MCOB 13.5.6GRP

In relation to MCOB 13.5.3 R, a firm should also have regard to the general law, including data protection legislation3, on the disclosure of information to third parties.