Consumer credit agreements—post-contract requirements
Consumer credit agreements—post-contract requirements

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Consumer credit agreements—post-contract requirements
  • What are post-contract requirements?
  • Assessment of credit worthiness during the agreement
  • Information to be provided on a current account agreement and on significant overdrawing
  • Appropriation of payments
  • Assignment of rights
  • Conduct of business in relation to pawn brokers
  • Post-contract—business practices
  • Rules on refinancing—general
  • Cancellation rights

Firms carrying on a consumer credit-related activity are required to comply with the Financial Conduct Authority’s (FCA) Consumer Credit Sourcebook (CONC). Chapter 6 of the sourcebook contains rules and guidance on post-contract requirements, and Chapter 11 outlines consumers’ right of cancellation. This Practice Note will explore a firm's post-contract obligations including assessing credit worthiness, the information to be provided to consumers, the appropriation of payments, assignment of right under a consumer credit agreement and conduct of business in relation to pawn brokers. For information on pre-contract requirements applicable to consumer credit firms see Consumer credit agreements—pre-contract requirements. Readers may also find the following useful: Regulated activities relating to consumer credit, The FCA consumer credit regime: an overview of rules relating to arrears, default and recovery and The regulation of consumer credit advertisements.

What are post-contract requirements?

'Post-contract requirements' is an umbrella term covering the rules about the information to be given by lenders to borrowers during the lifetime of a regulated credit agreement. Certain information must be given at periodic intervals, whilst other information must be provided on request—such as a statement of account and a copy of the credit agreement.

Firms carrying on a consumer credit-related activity must comply with CONC. Chapter 6 contains rules and guidance on post-contract requirements, while Chapter 11 outlines consumers’ right of cancellation. This Practice