CONC 4.2A Product information requirements: regulated deferred payment credit agreements

1. (1) Before making an agreement, the firm must:
   1. (a) give to the customer the information set out in CONC 4.2A.5R(1) (referred to in this section as the ‘key product information’); and
   2. (b) give, or make available, to the customer the information set out in CONC 4.2A.5R(2) (referred to in this section as the ‘additional product information’).
2. (2) The additional product information must all be given, or made available, to the customer together, except for the contractual terms and conditions which may be given, or made available, separately.
3. (3) Where there is more than one customer acting together as ‘joint borrowers’, the information required under this rule must be given, or made available (as applicable), to each customer.

In the case of an agreement that is a distance contract entered into orally, the requirement in CONC 4.2A.3R(1) may be satisfied by the firm:

1. (1) giving the key product information to the customer orally before the agreement is made; and
2. (2) giving the key product information and the additional product information to the customer in a durable medium immediately after the agreement is made.

1. (1) The key product information referred to in CONC 4.2A.3R(1)(a) is as follows:
   1. (a) the rate of interest that applies to the agreement;
   2. (b) the amount of the credit to be provided under the agreement;
   3. (c) the number and frequency of payments to be made by the customer under the agreement (and, where known, the dates upon which those payments will fall due);
   4. (d) the amount of each payment to be made by the customer under the agreement;
   5. (e) the cash price of the goods or services, the acquisition of which is to be financed by credit under the agreement;
   6. (f) the principal consequences for the customer of failing to make payment in accordance with the agreement including, where applicable:
      1. (i) the circumstances in which charges for late or missed payment or underpayment will be applied (and the amount of those charges);
      2. (ii) the risk of impaired credit rating and its possible effect on the customer's future access to, or cost of, credit;
   7. (g) whether the lender will obtain information from a credit reference agency before deciding whether to proceed with the agreement (but, where the lender does not know whether it will obtain information from a credit reference agency before deciding whether to proceed with the agreement, then instead, that the lender may obtain information from a credit reference agency before deciding whether to proceed with the agreement);
   8. (h) that information about certain rights is set out in the additional product information; and
   9. (i)  the existence of any other contractual terms and conditions of the agreement and, if they are to be made available (rather than given) to the customer as part of the additional product information, how the full contractual terms and conditions can be accessed.
2. (2) The additional product information referred to in CONC 4.2A.3R(1)(b) is as follows:
   1. (a) the identity of the lender and the supplier;
   2. (b) the existence of any of the following rights:
      1. (i) to withdraw from or cancel the agreement;
      2. (ii) to complete payments ahead of time;
   3. (c) an explanation of the circumstances in which the customer has any of the rights referenced in (2)(b), and how the customer may exercise them;
   4. (d) the existence of a right for eligible complainants to refer a complaint to the Financial Ombudsman Service, and information about how a complaint may be referred to the Financial Ombudsman Service;
   5. (e) an explanation of the interaction between any entitlement the customer has to return goods to the supplier, and the customer's rights or obligations under or in respect of the agreement;
   6. (f) any further information the customer needs to understand the potential adverse consequences of a failure to make payments in accordance with the agreement and an explanation of how the customer can avoid those adverse consequences;
   7. (g) an explanation of the protections available to the customer under section 75 of the CCA (or, if relevant, under section 75A of the CCA);
   8. (h) (where the customer will need to grant a continuous payment authority and the firm chooses to comply with CONC 4.6.2R in the manner set out in CONC 4.6.2AR) an adequate explanation of the matters set out in CONC 4.6.2R(2)(a) to (i) and (k); and
   9. (i) the contractual terms and conditions.

1. (1) Immediately after an agreement has been made, the firm must give, or make available, to the customer in a durable medium:
   1. (a) a copy of the agreement; and
   2. (b) the key product information and the additional product information described in CONC 4.2A.5R.
2. (2) The requirement in (1)(b) does not apply to the extent that:
   1. (a) the information is included in the copy of the agreement provided in accordance with (1)(a);
   2. (b) the information was given to the customer in a durable medium prior to the customer entering into the agreement; or
   3. (c) the information was given to the customer in a durable medium immediately after the agreement was made in accordance with CONC 4.2A.4R (Exception for distance contracts entered into orally).

1. (1) This rule applies if:
   1. (a) a firm is to enter into an agreement; and
   2. (b) an individual other than the borrower (in this rule referred to as ‘the guarantor’) is to provide a guarantee or an indemnity (or both) in relation to the agreement.
2. (2) The firm must, before making the agreement, provide the guarantor with the information in (3) in order to place the guarantor in a position to make an informed decision as to whether to act as the guarantor in relation to the agreement.
3. (3) The information referred to in (2) is:
   1. (a) an adequate explanation of:
      1. (i)  the circumstances in which the guarantee or the indemnity (or both) might be called on; and
      2. (ii) the implications for the guarantor of the guarantee or the indemnity (or both) being called on; and
   2. (b) such of the information mentioned in CONC 4.2A.5R as the firm considers necessary for the guarantor to understand the adequate explanations required by (3)(a) and make an informed decision as to whether to act as guarantor.
4. (4) The information provided under (3)(b) does not need to include information about the use of a continuous payment authority where that information is provided to the guarantor in compliance with CONC 4.6.5R.
5. [Note: See also Part 8 of the CCA.]

For the purposes of this section, information is made available to a customer only if the customer can reasonably be expected to:

1. (1) know how to access it; and
2. (2) be able to access it.

1. (1) Firms are reminded of their obligations under CONC 3.3 (The clear, fair and not misleading rule and general requirements), Principle 12 and PRIN 2A (the Consumer Duty). In the FCA's view, to comply with the requirements of CONC 3.3, Principle 12 and PRIN 2A and the rules in this section, a firm should, among other things, consider how it communicates with its customers and provides information in a way that supports customer understanding (see in particular PRIN 2A.5).
2. (2) In particular, firms should ensure that the information required under this section is communicated:
   1. (a) in such a way that:
      1. (i) the customer's attention is drawn to it; and
      2. (ii) it is not disguised, diminished or obscured by any other information given to the customer at the same time; and
   2. (b) in good time for the customer to consider it and make effective decisions before entering into the agreement.