57AObligations of creditor in relation to application

1. On receipt of an application by a debtor under section 55, the creditor must do the following:

2. within 5 working days after receiving the application, acknowledge receipt of the application by giving a written notice to the debtor (see section 26B(1)(a) and (2)(b)):
3. within 10 working days after receiving the application, request any further information from the debtor (but only if that further information is necessary to decide the application) by giving a written notice to the debtor:
4. within 20 working days after receiving the application,—
   1. in compliance with the lender responsibility principles (see section 9C), decide whether to agree to change the consumer credit contract in accordance with the application; and
   2. give written notice to the debtor of that decision; and
   3. if the creditor does not agree to change the consumer credit contract in accordance with the application, give written notice to the debtor setting out—
      1. the creditor's reasons for that decision; and
      2. a clear summary of the debtor's rights under section 58.

5. However, if the creditor has requested further information in accordance with subsection (1)(b), the time within which the creditor must comply with subsection (1)(c) is the later of—

6. 10 working days after receiving the further information; and
7. 20 working days after making the request under subsection (1)(b).

8. A creditor—

9. must not charge any credit fee in relation to an application (whatever the outcome of the application) if that fee would not, in the absence of the application, be otherwise payable:
10. must, if Part 3A applies, comply with section 83J (which prevents enforcement action until the application is decided).

11. However, if the application is successful, nothing in subsection (3)(a) prevents a creditor from charging a credit fee that reasonably compensates the creditor for the costs incurred by the creditor in documenting the changes to the credit contract.