What is a Regulated Credit Agreement?
If you have a loan, or you have purchased goods on credit, to the value of £25,000 or less, then your lender should have provided you with Regulated Credit Agreement. The content of the agreement has to conform to Regulations in accordance with the Consumer Credit Act 1974 and should be signed and dated by both you and the lender for it to have been properly executed. Top
What type of agreement is caught by the Regulations?
a) Agreements applicable to cash loans or loans to purchase specified goods (typically vehicles). These agreements are categorised as Fixed-sum loan agreements, Hire purchase agreements or Conditional sale agreements.
b) Agreements applicable to overdraft, credit card and store card facilities. These are classed as Running account agreements and are categorised as Credit Card agreements or Credit agreements.Top
What type of agreement is exempt from the Regulations?
Generally agreements issued to incorporated companies, Charities, firms with more than four partners, certain specified overdraft accounts, Utilities and land agreements (mortgages specifically for the land and buildings).Top
What type of agreement can the Checker system check?
The Checker system is capable of checking the content of most credit agreement types that are regulated by the Consumer Credit Act 1974. Interest rates, payments and APR can also be calculated for Un-regulated agreements.Top
What type of agreement cannot be checked by the Checker system?
The Checker system will not assess or check Credit Card Agreements or agreements with linked insurance contracts such as Payment Protection (PPI) or Accident, Sickness and Unemployment (ASU) nor will it assess agreements with maintenance contracts. If you have such an agreement please email us at info@checkmyagreement.co.uk. and a member of staff will be more than willing to check this type of agreement for you. We will advise you of our fee depending on the complexity of your agreement.Top
How does the Checker calculator work out the interest?
The Checker Interest figures are calculated on a daily basis on the balance outstanding at the end of each monthly period taking account of the monthly payments. This method of calculating Interest is the most common method used by lenders and it is likely to be the one used for your agreement. If you have doubts as to how interest and payments are applied to your agreement please refer to your agreement general terms and conditions for clarification or contact info@checkmyagreement.co.uk. where a member of staff may be of help.Top
For what reasons can agreements be unenforceable?
Pursuant to the Consumer Credit Act 1974, regulations to the form and content of documents embodying regulated consumer credit agreements ensure that the debtor is made aware of:
- The rights and duties conferred or imposed on him by the agreement;
- The amount and rate of the total charge for credit;
- The protection and remedies available to him under the "Act"; and
- Any other matters which it is desirable for him to know about in connection with the agreement.
A regulated agreement is not properly executed unless:
- A document in the prescribed form containing all the prescribed terms is signed by the debtor and the creditor;
- The document embodies all the terms of the agreement, other than implied terms; and
- The document is, when presented to the debtor for signature, in such a state that all its terms are readily legible. Top
What if my agreement is shown to be non compliant with the Regulations?
The Regulations contains requirements as to the form and content of documents embodying regulated consumer credit agreements. If these requirements are not complied with, the agreement is not properly executed and is enforceable against the debtor only with a court order. The court must dismiss a lenders application for an enforcement order if it regards that prejudice has been caused to any person by the breach in question, and the degree of responsibility for it.
The Regulations also provides that certain terms are 'prescribed terms' and must be contained in the "agreement" if it is to be properly executed. If any of the prescribed terms is missing, or incorrect, the "agreement" is not enforceable against the debtor and the court is precluded from making an enforcement order in such cases.
From 6th April 2007 the Financial Ombudsman Service offers you mediation and conciliation scheme to cover consumer credit disputes. Decisions will be made using guidance from the Office of Fair Trading as to possible infringements of the Consumer Credit Act 1974 and the Regulations. The scheme is free and is referred to as the Alternative Dispute Resolution (ADR).
All Consumer Credit Agreements regulated by the Consumer Credit Act 1974 are only enforceable by order of the court. In the absence of such an order, the lender may not take steps to enforce the agreement or to reclaim goods or security that are covered by the agreement .Top
What if my agreement is shown to be enforceable?
The agreement technically complies with the most important Regulations and would therefore probably stand up in court in favour of your lender. However, there might be other aspects such as the interspersing and prominence rules that may breach the regulations. Due to the Checker system not covering these aspects you might find it worthwhile contacting us at info@checkmyagreement.co.uk. where a member of staff will be willing to analyse your agreement further. Top
How do I get to know more about the Checker process?
You can contactus at any time and we will explain furter Top
How do I know if I have entered the correct detail in the Questionnaire?
If you are unsure on any of the fields that you need to fill in then please contact us and we will only be too happy to assist you.Top
What can I do if the assessment shows that the agreement might be unenforceable?
You can make a complaint or issue a claim against your lender via:
- Our appointed professional company that specialise in compensation claims for clients.
- Our appointed professional company that specialise in compensation claims for clients for a fee.
- Your own Do-It-Yourself method (£155.00 fee if you want the Checker report and a bespoke self help pack). If you want to proceed along this route you can send a cheque or a postal order for £155 made payable to 'Recover' to 'Check My Loan, Ravenstone House, Brittannia Road, Sale M33 2NN (packs are dispatched within 14 days of cleared funds).
When you have completed the questionnaire and viewed the assessment you will go to the 'make a claim' page where the above facilities will become available to you.
Please call us for further information about making a complaint or a claim. Top
Can I see the sample report?
There are links to view a sample report in various places throughout the site. Top
What if I am experiencing pressure from my lender?
You can contact info@checkmyagreement.co.uk. listing the current problems you are experiencing along with the status of any proceedings your lender may have taken. A member of staff will contact you and offer you the right legal services that might help with your circumstance. Top
Can Financial Agreement Solutions help with my mortgage account or any other account that I have that is not Regulated?
We will try. We have 15 years experience in auditing mortgage accounts, business accounts etc. and have gained success for clients in resolving issues between our clients and their lenders. Please go to'Other services' for more information or contact info@checkmyagreement.co.uk with your details and brief explanation as to what you require and a member of staff will contact you by return. Top |
