RESTRICTED - REGULATORY

REQUIREMENTS IMPOSED BY THE OFFICE OF FAIR TRADING
(''the OFT .. ) PURSUANT TO SECTION 33A AND SECTION
33D(4) OF THE CONSUMER CREDIT ACT 1974 ("the Act")

REQUIREMENTS PROPOSED BY AND RELATING TO:

Royal Bank of Scotland pic (company number SC090312) which holds
licence numbered 0176720 ("RBS") and whose registered office address
is at 36 St Andrew Square, Edinburgh EH2 2YB.

THE OFT REQUIRES THAT:

1 .
Where RBS proposes to vary, replace or cease to follow the policies,
procedures, practices or processes it has disclosed in writing to the
OFT which relate to the circumstances in
which it will apply for
charging orders and orders for sale in respect of debts owed to it by
individuals under consumer credit agreements ("Customers") it will
for a period of three years from the date of these requirements
provide to the OFT details of such proposals at least one month prior
to the variation, replacement or cessation coming into effect.

2.
RBS will not take steps to obtain a charging order (interim or final) or
an order for sale in relation to a sum owed to it by a Customer
unless it has, from time to time, before the Court makes such an
order considered whether the steps it proposes to take are
appropriate and reasonable having regard to the interests of both
RBS and the Customer and it will in particular (but without limitation)
take account of:

2.1
the extent to which such Customer has engaged with RBS or
its agents to try to agree a repayment plan and the extent to
which such Customer has made payments in accordance with
such a plan;

2.2
the personal and financial circumstances of the Customer,
including the value of his or her assets, to the extent known to
RBS or to the extent they would have been known to RBS had
it made reasonable enquiries of the Customer or his or her
appointed representative;

2.3
the amount of the sum owed;

2.4
the length of time that the sum has been owed by the
Customer to RBS; and

1

RESTRICTED - REGULATORY

2.5
whether it is reasonable for RBS to take alternative steps to
recover the sum due.

3.
RBS or its agent (as the case may be) will, where a charging order
(interim or final) or an order for sale is sought against a Customer,
include in the relevant customer/account file a note that evidences
the review undertaken by RBS or its agents in accordance with
requirement 2 and the matters it has taken into account when
deciding to apply for a charging order (interim or final) or an order for
sale, and RBS will upon request make such note available to the
OFT.

ANY FAILURE TO COMPLY WITH THE ABOVE REQUIREMENTS WILL
RENDER ROYAL BANK OF SCOTLAND PLC LIABLE TO FURTHER
FORMAL ACTION BY THE OFT. THIS COULD INCLUDE THE IMPOSITION
OF FINANCIAL PENAL TIES PURSUANT TO SECTION 39A OF THE ACT
AND/OR THE REVOCATION OF ROYAL BANK OF SCOTLAND PLC'S
CONSUMER CREDIT LICENCE PURSUANT TO SECTIO~
ACT.

Authorised signatory on behalf of OFT ....... ~ .~~.~
.... ~ .................. ..

(David Fisher - Director of Consumer Credit

1
.~./~.~ . t~.~·'J. ................. ..

2