BCOB Regulations

Re: BCOB Regulations

I hope no one on CAG is going to assume that this offers a new line for Unfair Charges cases because it does not.

I think you posted about BCOBS in 2010. Sadly they are what they are, and not as powerful as one might expect.

[leclerc]

Re: BCOB Regulations

BCOBS does not apply to overdrafts or unfair charges. The regulatory change put the OFT in charge in this relation. I hope no one on CAG is going to assume that this offers a new line for Unfair Charges cases because it does not.

[Dougal16T]

Re: BCOB Regulations

Morning all,

Whilst it appears that this is the case, I believe that it may cover other institutions including sub-prime lenders by virtue of the following:

Taken from the BCOB Regulations:

Annex B
Amendments to the Principles for Businesses (PRIN)
In this Annex, underlining indicates new text and striking through indicates deleted text.
Accepting deposits and issuing electronic money
1.1.3 G The Principles apply with respect to regulated activities generally, but, in
applying the Principles with respect to accepting deposits and issuing
electronic money the FSA will proceed only in a prudential context. That is to
say, in this context, the FSA would not expect to exercise the powers brought
into play by a contravention of a Principle unless the contravention amounted
to a serious or persistent violation which had implications for confidence in
the financial system, or for the fitness and propriety of the firm or for the
adequacy of the firm’s financial resources.
…
3.2.1 R PRIN applies with respect to the carrying on of:
(1) regulated activities;
(2) activities that constitute dealing in investments as principal,
disregarding the exclusion in article 15 of the Regulated Activities
Order (Absence of holding out etc); and
(3) ancillary activities in relation to designated investment business,
home finance activity, and insurance mediation activity and
accepting deposits.

Here are some examples of unfair treatment:

The FSA Conduct of Business Sourcebook rules make it illegal for your bank or your credit card issuer or your lender to treat you unfairly.

Banking:Conduct of Business Regs - (BCOB or BCOBS) gives you the right to sue your bank in the county court in respect of unfair treatment received in connection with the provision of retail current account services.

Unfairness in connection with the provision of credit card services or a loan is a breach of an implied term in your contract and you can sue for breach of contract


If you sue your bank for breaking the law under BCOBS, you are suing them for Breach of Statutory Duty.
If you sue your bank for breaking the law in respect of unfairness in a credit card or loan contract, you are suing them for breach of contract.

Here are some examples of unfair treatment.

Some of these are actually identified in the FSA guide or the BBA guide.

However, as has been pointed out elsewhere, these guides are rather restricted in their treatment of BCOB and are limited in their description of unfair scenarios.

You should check out BCOB rule 5.1.1 which creates a general duty to treat you fairly.

The list below includes common complaints on this forum which think would probably be a breach of the BCOB rules.
You can probably come up with more examples.

It should be noted that banks cannot act illegally either by treating you unfairly directly - or through their agents.


In no particular order:-
Refusing to discuss financial difficulties and to suggest positive solutions
Unexplained peremptory closure of accounts - the longer the account has been held, the greater the requirement of an explanation and of tolerance to difficulties
Unexplained peremptory withdrawal of overdraft facilities - once again, the length of time that the account or overdraft has been in place is highly relevant - especially in respect of small businesses
Refusal to accept reasonable repayment proposals on the evidence of an income expenditure schedule
Ignoring a letter of appropriation
Harassment of debtor on the phone
Charges on bounced DDs or cheques
Imposing an overdraft on a basic account
Charges on paid DDs or cheques
Treating bank-imposed charges as unauthorised - (RBS has already conceded as a "gesture of goodwill" on this BCOBS point)
Levying charges upon charges - (RBS has already conceded as a "gesture of goodwill" on this BCOBS point)
Failure to accept instructions not to make further payments on a credit card/debit card number
Refusal to cancel DD instruction
Refusal to offer basic bank account without good reason
Charging more than cost for duplicate bank statements - £5 fee is probably unfair
Failing to supply bank statements on accounts in difficulty where account fee is still paid
Reneging on an instalments agreement by, for instance, by beginning recovery measures directly or through an agent while the agreement is in place.
Insisting on payments being made only in some particular form such as by direct debit - and refusing to accept payments made by some other method, for instance Standing order.
Suing your bank in these circumstances is usually a relatively straightforward County Court action

If you really want to teach your bank a lesson that unfairness doesn't pay, then prove a breach of FSA regulations and then use that to challenge the fairness of the relationship under s.140A Consumer Credit Act. The effect of this could be to have the entire loan declared unenforceable.

I cannot advocate that people should avoid their legitimate debts, but on the other hand if it takes some debt avoidance to persuade the banks to start behaving themselves and to stop bullying their customers - then so be it.


Methinks more research is needed by yours truly....any comments anyone?

Best wishes to all:

Dougal

Re: BCOB Regulations

Here they are folks:

FSA Handbook - Full Handbook

An important point to make clear is these regulations cover only the non lending section of the Banking Code, hence I presume, the introduction of the Lending Code.