What happens if pre-contractual information is not supplied?

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Published on LexisPSL on 29/08/2014

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • What happens if pre-contractual information is not supplied?
  • What is pre-contractual information?
  • When do I need to supply PCI?
  • How should PCI be provided?
  • What happens if it is not supplied?
  • What happens if PCI is supplied but is not correct?

What happens if pre-contractual information is not supplied?

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

What is pre-contractual information?

As the name suggests, pre-contractual information (PCI) consists of prescribed information that must be provided to a prospective borrower under a regulated credit agreement, in advance of the credit agreement being executed. Depending on the applicable regulations the information may need to be set out in a prescribed form and be accompanied by prescribed statements of protection and remedies.

There are separate requirements for quotations and adequate explanations which are outside of the scope of this Practice Note.

The specific requirements are contained in the following regulations and rules:

  1. Consumer Credit (Disclosure of Information) Regulations 2004 (SI 2004/1481) (2004 Regulations)

  2. Consumer Credit (Disclosure of Information) Regulations 2010 (SI 2010/1013) (2010 Regulations)

  3. FCA Consumer Credit Sourcebook (CONC) 2.7 for certain contracts entered into at a distance

The type of credit agreement and how it is entered into determine which regulations or rules apply.

When do I need

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