in the case of home loan agreements and high-priced short-term loans, the effect of refinancing (within the meaning of CONC 6.7.17 R) or any other extension of the term of the loan or credit agreement; Neither a lender nor a credit intermediary may require a customer to acknowledge that the information and explanations it provides are sufficient to meet the requirements of CONC 4.2.5 R. Different elements of the loan granted are subject to different interest rates and different fees (e.B. higher cash withdrawal costs); When deciding on the level and scope of the declaration required under CONC 4.2.5 R, the creditor or credit intermediary should take into account the factors (and each of them should ensure that any person acting on its behalf) takes into account, where appropriate, factors such as: A creditor or credit intermediary may require confirmation that it has made a declaration, and the receipt of all written information that is part of the explanation, but not an acknowledgment of its relevance. ConC 4.2.13 R does not prevent the lender or credit intermediary from asking whether the customer has understood a given statement. In its consultation paper “Detailed Proposals for the FCA Consumer Credit Regime” (CP13/10), the Financial Conduct Authority (FCA) highlighted that one of the key principles underlying consumer credit rules is to ensure that consumers are treated fairly while being responsible for their own choices. This form contains important details, including yours; Type of loan, APR, down payment, monthly payments, lump sum payment (or optional final payment), the total repayable amount and finally the terms of the agreement. All contractual information must be presented to customers in a clear and concise manner. A lender or credit intermediary shall not encourage or induce a customer to waive the rights of CONC 4.2.5 R. Your credit agreement should not be confused with standard European consumer credit information (SECCI), also known as pre-contractual credit information. Lenders must provide you with a copy of this document during the loan application process to explain the key features of the product. A person other than the borrower (generally referred to as “the guarantor”) must provide security or set-off (or both) in respect of the regulated loan agreement.
Before reviewing and signing your Polar credit agreement, you will receive pre-contractual credit information, also known as SECCI, that describes the main features of the Polar line of credit. Provided you wish to proceed with your application, you will receive our loan agreement for review and signature, unless we are unable to approve your application at that time. Most credit agreements fall under the Consumer Credit Act and must include your rights when entering into the contract. Your creditor must provide you with a written copy of the agreement that clearly states the following: By presenting the information in a clear standardized format among all FCA-regulated lenders, you can clearly see what you are committing to. If the regulated credit agreement is a short-term loan with high costs, the lender or credit intermediary must declare, in accordance with paragraph 4.2.5R(1)(a) of the CONC, that entering into this agreement would not be appropriate to support sustainable borrowing over long periods of time and would be costly as a means of borrowing in the longer term. applies to a business with respect to consumer credit; in the case of a credit agreement containing a condition requiring a guarantor, the obligation for the customer to provide a guarantee in the form of a guarantee. For regulated consumer leases and certain regulated credit agreements, the form and content of pre-contractual information is required by the Consumer Credit (Disclosure of Information) Regulations, 2004. This usually requires disclosure prior to the contract (secci`s management of the client) before the client signs or approves the agreement. Lenders must provide at least all the information specified in SECCI: they can provide potential customers with additional information on a separate information sheet.
Paragraphs 1 to 4a7 shall not apply to a creditor where a credit intermediary has complied with those subparagraphs in respect of the agreement. The main consequences for the Customer resulting from the failure to make payments under the Contract at the times prescribed in the Contract, including, where applicable and depending on the nature and amount of the loan and the Customer`s circumstances: in telephone or in person transactions, the interaction between the Customer and the Company Representative is also important. It must be clearly indicated to the customer that the customer may ask questions or request additional information or explanations, and for example, the agent who provides the customer with a written explanation of an agreement or who relies solely on a script written in connection with an agreement is unlikely to comply with the requirement of CONC 4.2.5 R. the risk to the customer arising from the credit note (the higher the total cost of the credit in relation to the customer`s financial situation, the higher the risk to the customer is likely to be);4 The practical application of this principle is summarized in the Consumer Credit Rules on Pre-Contractual Disclosure (CONC 4). By requiring a lender to disclose pre-contractual information, reasonable explanations and other risk warnings to the borrower “in a timely manner” before deciding to enter into a loan agreement, the borrower can make an informed decision about entering into the loan agreement. For information on post-contract requirements, see Practical Note: Consumer Credit Agreements – Requirements by Contract. . . .