The Consumer Credit Act and all of the various regulations and orders which have recently been introduced are very strict on what information must be presented to the consumer, when it must be presented, and the order and manner in which it is to be shown. This is so the consumer is in no doubt as to what they are committing to, and are able to make like for like comparisons between various credit providers.
For all credit agreements made after 31/05/05, the following information must be made available to you either before the agreement is concluded or immediately afterwards.
- Nature of the agreement (fixed sum loan, HP, credit card etc)
- Parties to the agreement (the creditor and you)
- Key Financial Information, including amount of credit, credit limit, agreement duration, total amount repayable, APR, and repayment requirements.
- Other Financial Information, including description of gods or services, cash price of goods, any advance payments, total charge for credit, rate of interest, and any variations in this rate.
- Key Information, including cancellation rights (or absence of), early repayment rights, and all other statutory rights and remedies available to you
- A signature box – if you have not already signed and, where applicable, any separate boxes indicating the optional purchase of additional products (such as payment protection insurance)
All of this information must be presented clearly, legibly and prominently. It should be shown together on a separate document and sent to you either prior to signing or within seven days afterwards. It needn’t be a hard copy and can be sent to you by email as a PDF. You can however request a paper copy of the executed agreement at any time. This is sometimes called a CCA request.
If any of this information is missing, or simply not provided to you within seven days, it may mean the agreement is legally unenforceable, and the creditor may have to seek a court order.
- Consumer Credit Act and Your Rights
- Ending a Credit Agreement
- Defaults, Arrears and Debt Collection Agencies
- Consumer Credit Act