Q&As

Does the financial conduct authority's consumer credit sourcebook (CONC) apply to the Consumer Credit Act 1974 (CCA 1974) regulated loans secured on land or property? Prior to the implementation of the mortgage credit directive, were CCA 1974 regulated second charge mortgages over land/property subject to CONC?

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Produced in partnership with Thomas Samuels of Gough Square Chambers
Published on LexisPSL on 18/06/2020

The following Financial Services Q&A produced in partnership with Thomas Samuels of Gough Square Chambers provides comprehensive and up to date legal information covering:

  • Does the financial conduct authority's consumer credit sourcebook (CONC) apply to the Consumer Credit Act 1974 (CCA 1974) regulated loans secured on land or property? Prior to the implementation of the mortgage credit directive, were CCA 1974 regulated second charge mortgages over land/property subject to CONC?
  • Agreements secured on land
  • Agreements secured on other property

Does the financial conduct authority's consumer credit sourcebook (CONC) apply to the Consumer Credit Act 1974 (CCA 1974) regulated loans secured on land or property? Prior to the implementation of the mortgage credit directive, were CCA 1974 regulated second charge mortgages over land/property subject to CONC?

The financial conduct authority consumer credit sourcebook (CONC) applies generally to ‘credit-regulated regulated activities’ (CONC 1.1.1G). In turn, that is defined in the Handbook Glossary as including a number of different types of activity including ‘entering into a regulated credit agreement as lender’, as defined by section 60B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), SI 2001/544.

Subject to the exemptions at RAO, SI 2001/544, Ch 14A, a ‘regulated credit agreement’ is simply any agreement for the provision of credit to ‘an individual or relevant recipient of credit. Therefore, the starting position is that any agreement which falls within that definition, whether or not secured on land/other property, may be governed by the rules and guidance found in CONC.

However, CONC 1.2 (‘Who? What? Where?’) must be looked at to determine its precise application to such agreements. As a result, CONC applies differently to agreements secured on land versus those secured on chattels and other property.

Agreements

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