As overdrafts are not payment services, does that mean that none of the overdraft terms are part of the framework contract or covered by schedule 4?
While the provision of credit is not in itself a payment service, the execution of payment transactions covered by a credit line is. Many or most of the terms for an overdraft are inextricable from the payment service and form part of the framework contract or the schedule 4 information that has to be disclosed under regulation 40. Examples include, where relevant, details of interest rates. However, regulation 34 disapplies certain information requirements for agreements that are regulated agreements under the Consumer Credit Act 1974 (CCA), given that the CCA regulates the provision of credit rather than the provision of payments. The carve out is there to avoid the overlap and inconsistency that would result from, for example, different requirements for varying interest rates and credit limits applying under the CCA and the PSR.
