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What Is A Consumer Credit Agreement

If you received a credit for services, you will probably be reimbursed if you terminate the credit contract, if you have already made part of the payment, for example. B as a deposit. If the lender asks the consumer, with prior consent, to offer a remote contract for financial services, the lender must, on that date, indicate at least the main characteristics of the financial service – the total amount of the credit and debit terms, the duration of the contract, the interest rate, the amount, the number and frequency of the payments , the description of goods or services and the cash price when the credit is granted in the form of a deferred payment for a good or service. Are your finances struggling to cope? We outline the 13 warnings you need to keep in mind and what you can do to make things better. The CCA covers several areas covered by the general section of consumer credit and leasing contracts. These include: some agreements are covered by the Consumer Credit Act, which covers your rights when entering into a credit contract. This includes: The information that these credit references contain about you is referred to as your credit file. As part of the CCA, you have the right to see this file and make sure it is correct and correct. Advertising for credits, which has aspects related to the cost of this credit (for example. B the interest rate), must provide standard information on the basis of a representative example, including: consumer credit contracts include, on the one hand, professional lenders and, in some cases, credit intermediaries and, on the other hand, consumers who enter into a consumer credit contract.

The CCA gives you the right to terminate a credit contract within 14 days of acceptance or if you receive a copy of the agreement if the agreement has been concluded by phone, mail or online. For credit cards, it`s 14 days after you`ve been informed of your credit limit. The lender or, if so, the credit intermediary must also provide the consumer with sufficient information to enable the consumer to compare the various available credit contracts and determine whether the proposed credit contract corresponds to their needs and financial situation. They must also inform the consumer of the risks and consequences of default when repaying the loan. In addition, the lender must assess the solvency of the consumer before granting a credit contract (or a significantly increased amount). This must be done on the basis of information provided by the consumer and a credit reference agency licensed FCA. The CCA understands that, in the case of remote credit contracts, consumers can make a hasty or ill-thought-out decision. For this reason, the CCA gives consumers a “reflection period” in which they have the right to terminate a credit contract within five days of filing the application, if it has been purchased by the lender`s premises, but personally, i.e.

on a pop-up stand. The consumer can reimburse all or part of the amount in the credit agreement at any time. In this case, the consumer is entitled to a reduction in the total cost of the credit corresponding to the interest and taxes due for the remainder of the contract. The Consumer Credit Act is an important law that covers most commercial loans in the UK. It defines what creditors should do when they borrow money and when they withdraw it.

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