Credit Guide Factsheet
Guide to credit in the UK
Law: To authorize credit you must have a license issued by the Financial Conduct Authority(FCA)
The Consumer Credit Act 1974
The majority of credit agreements are enclosed under the act and these are known as regulated agreements.
Having a regulated agreement allows certain information to be incorporated within:
- Amount borrowed
- Period of time of agreement
- Fees
- Interest Rates
- Payment Plan
- Cancellation Rights
- Total Charge for Credit
- Annual Percentage Rate
Total Charge for Credit and Annual Percentage Rate must be integrated within the agreement otherwise it becomes unenforceable pending a court order.
Regulated agreement further entitles you to a signed (by both parties involved) duplicate of the agreement. An unsigned document or no duplicate also makes the agreement unenforceable pending a court order.
In addition you are entitled to ask for another copy to be sent upon request although there will be a fee.
Lastly, they have a duty to inform you of all the next steps to be taken before court action can take place. This includes the drafting of a default notice.
Areas Covered
- How do you know if it is a regulated agreement?
- Did the agreement laws change post 6th April 2008?
- Which credit to go with?
- Can you receive insurance to cover your payments?
- Should you use a credit broker?
- Can you secure a loan on your home?
- The 'Pre-Contract Information' document
- What if there is an issue with the product or service?
- Can you cancel your credit related agreement?
- Is this the same for regulated hire agreements?
- Can the credit company cancel the agreement?
- What are the steps taken to see if you can receive credit?
- Credit Scoring
- What information do the credit reference agencies hold?
- What information is not held with the credit reference agencies?
- Can you have your credit repaired?
- What if you cannot pay off your credit card debt?