Regulation 4 Information to be disclosed: telephone contracts

United Kingdom

(1)

This regulation applies to an agreement (other than an authorised non-business overdraft agreement) made by way of a voice telephone communication (whether or not it is a distance contract).

(2)

Where the agreement is a distance contract and where the debtor explicitly consents, the creditor must disclose the following information before the agreement is made—

(a)

the identity of the person in contact with the debtor and that person's link with the creditor,

(b)

a description of the main characteristics of the credit agreement which includes the information set out in regulation 3(4)(c), (d), (e), (f), (g), (h), (i) F1, (j) and (w),

(c)

the total price to be paid by the debtor to the creditor for the credit including all taxes paid via the creditor or, if an exact price cannot be indicated, the basis for the calculation of the price enabling the debtor to verify it,

(d)

notice of the possibility that other taxes or costs may exist that are not paid via the creditor or imposed by the creditor,

(e)

whether or not there is—

(i)

a right to withdraw under section 66A of the Act, or

(ii)

a right to cancel under regulation 9 of the Financial Services (Distance Marketing) Regulations 2004 M1 and, where there is such a right, its duration and the conditions for exercising it, including information on the amount which the consumer may be required to pay in accordance with regulation 13 of those Regulations, as well as the consequences of not exercising that right,

(f)

that other information is available on request and the nature of that information.

(3)

Where the agreement is not a distance contract the creditor must disclose the information in paragraph (2)(b) before the agreement is made.

(4)

The creditor must disclose the pre-contract credit information in the manner set out in regulation 8 immediately after the agreement is made.

Annotations

Textual amendments

F1: Words in reg. 4(2)(b) substituted (1.7.2018) by The Financial Services and Markets Act 2000 (Benchmarks) Regulations 2018 (S.I. 2018/135), regs. 1(2)(a), 57(3)

Marginal citations

M1: S.I. 2004/2095, as amended by S.I. 2009/209; there are other amending instruments but none is relevant.

Notes on the whole SI

Textual amendments

F1: Words in Regulations substituted (26.7.2013 for specified purposes) by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) (No.2) Order 2013 (S.I. 2013/1881), art. 26(2)