Financial Promotions Guide
2.5 // Restrictions
Financial Promotions Guide
2.5 // Restrictions
As per CONC 3.5.12R, the following words and expressions are restricted, and should only be used in line with the
guidance below.
Word or expression | Restriction |
|---|---|
“Interest free” | Can only be used where there are no interest charges or fees of
any kind. |
“No deposit” | Can only be used if there is no advance payment of any kind. |
“Gift”, “present” or any similar expression | Can only be used where there are no conditions which would require
the customer to repay the credit, or return the financed item. |
“Weekly equivalent” or any similar
expression or other periodical equivalent | Can only be used if weekly payments or other periodical payments are
provided for under the agreement. |
Financial Promotions Guide
FCA - Misleading terms
In a ‘Dear CEO’ letter issued to consumer credit firms in May 2022, the FCA highlighted the use of phrases such as “no credit check loans”, “loan guaranteed”, “pre-approved” or “no credit checks” in promotions by credit brokers. The FCA stated that while a credit broker may not conduct a creditworthiness assessment itself, they are concerned that this could mislead consumers into believing that the lender will not carry out any checks on their credit status.
0% finance
There are different rules where a financial promotion is completely free from interest or charges for the term of the agreement. You can promote 0% finance without triggering the need for either a representative APR or representative example.
Promotions of interest-free products are not exempt from any other regulations however, and must remain clear, fair and not misleading for consumers.
