| ref:FAS/2007/xx/xx/xxxxxxxxxxxxxxxx |
Date:14/03/2007 |
|
|
Assessment of a Regulated Credit Agreement
between xxxxxxxx xxxxxxxx Bank (creditor)
and
Not available (debtor) |
|
The Checker method
The assessment shown in the panel below has been returned from our Internet based, automated Checker system and relies on the information entered by the user. The data input is shown under the data entry column alongside the assessment column, which shows the corresponding Checker results.
The data entries have been tested by the Checker system for faults that may be inherent with reference to the Consumer Credit Act 1974 (CCA) and its regulations (Regs) pursuant to section xxxx.
The Regulations
Pursuant to section xxxx, regulations to the form and content of documents embodying regulated consumer credit agreements ensure that the debtor is made aware of:
- xx xxxxxxx xxxx xxxxxxxxxx xxxx xxxxxxxxxx xxxxxxxx xxxxxxxxxxx;
- xxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxx x xxxxxxxx xxxxxxxx xxxxxxxxxxx;
- xxxxxxxx xxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxx; and
- xxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxx.
Section xxxxxx prescribes that a regulated agreement is not properly executed unless:
- xxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxx x xxxxxxxx xxxxxxxx xxxxxxxxxxx;
- xxxxxxxx xxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx xxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxx; and
- xxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxx.
Reg xxxx of the "Regs" 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.
Reg xxxx of the "Regs" provides that the terms specified in schedule xxxx of the "Regs" are 'xxxxxxxxxxx' for the purpose of section xxxx. The terms must be contained in the "agreement" if it is to be properly executed.
The xxxxxxxxxxxxxxx relate to the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. If any of the xxxxxxxxxxxxxxxxxx is missing, or incorrect, the "agreement" is not enforceable against the debtor. The court is precluded by section xxxxx from making an enforcement order in such cases.
Assessment table
|
Assessment:
|
FAS reference: FAS/2007/xx/xx/xxxxxxxxxxx |
| Debtor: |
Data protected |
| Creditor: |
Xxxx Xxxxxx Xxxxxx Corporation |
| Agreement date: |
|
| Assessment category: |
Regulated Consumer Credit Agreement |
| |
|
| Agreement terms |
Data entry |
Assessment |
Difference |
| Amount of credit: |
£12,000.00 |
£12,000.00 |
£0.00 |
| Total cash price: |
|
£12,000.00 |
£-12000.00 |
| Term (months): |
12 |
12 |
0 |
| APR: |
9.0% |
11.2% |
-2.2% |
| Interest rate: |
7.6700% |
7.6700% |
0.0000% |
| Total interest: |
£960.00 |
£504.36 |
£455.64 |
| Total charges/fees: |
£200.00 |
£200.00 |
£0.00 |
| Total charge for credit: |
£1,160.00 |
£704.36 |
£455.64 |
| Cost of goods, services etc: |
£12,000.00 |
£12,000.00 |
£0.00 |
| First payment: |
£1,200.00 |
£1,058.70 |
£141.30 |
| Subsequent payments: 10 |
£1,200.00 |
£1,058.70 |
£141.30 |
| Last payment inc. deferred payment: |
£1,200.00 |
£1,058.66 |
£141.34 |
| Total payments: |
£0.00 |
£12,704.36 |
£-12704.36 |
| Advance payment: |
£0.00 |
£0.00 |
£0.00 |
| Total amount payable: |
£13,400.00 |
£12,704.36 |
£695.64 |
Note: the payments shown include payment of the charges.
Conclusion:-
FAS consider the agreement to have been improperly executed and, in accordance with CCA section xxxxxx, the creditor may not take steps to enforce the agreement.
First payment
Shown on agreement:- £1,200.00
Checker result:- £1,058.70
The first payment is incorrect and is therefore in breach of Reg xxxxxx. This provides that the repayments are a prescribed term for the purpose of section xxxxxx. The repayments must be contained correctly in the agreement if it is to be properly executed.
Subsequent payments
Shown on agreement:- £1,200.00
Checker result:- £1,058.70
The subsequent payments are incorrect and are therefore in breach of Reg xxxxxx. This provides that the repayments are a prescribed term for the purpose of section xxxxxx. The repayments must be contained correctly in the agreement if it is to be properly executed.
Last payment
Shown on agreement:- £1,200.00
Checker result:- £1,058.66
The last payment is incorrect and is therefore in breach of Reg xxxxxx. This provides that the repayments are a prescribed term for the purpose of section xxxxxx. The repayments must be contained correctly in the agreement if it is to be properly executed.
Total payments
Shown on agreement:- Missing
Checker result:- £12,704.36
The total payment amount is missing from the agreement and is therefore in breach of Reg xxxxxx. This provides that the repayments are a prescribed term for the purpose of section xxxxxx. The repayments must be contained correctly in the agreement if it is to be properly executed.
Other incorrect terms
There are other terms of the agreement that are also incorrect, which would only render an agreement unenforceable by order of the court.
Agreement Date
The agreement date is missing from the agreement and is therefore in breach of Reg xxxxxx.
Agreement Title
The heading shown on the agreement is not in the prescribed form and is therefore in breach of Reg xxxxxx. This requires a heading to the agreement in one of the forms set out in Sch xxxxxx para xxxxxx. If none of these is applicable, the heading prescribed in para xxxxxx must be used.
Debtor name and address (parties to agreement)
The Debtor name and/or address is not shown on this agreement and is therefore in breach of Reg xxxxxx. This requires the name and postal address of the Debtor as set out in Sch xxxxxx para xxxxxx.
Total cash price
Shown on agreement:- Missing
Checker result:- £12,000.00
The total cash price is missing and is therefore in breach of Reg xxxxxx. This requires the total cash price as set out in Sch xxxxxx para xxxxxx.
APR
Shown on agreement:-9.0%
Checker result:- 11.2%
The APR is incorrect and is therefore in breach of Reg xxxxxx. This requires the APR as set out in Sch xxxxxx para's xxx, xxx and xxx.
Total Interest
Shown on agreement:- £960.00
Checker result:- £504.36
The total interest amount is incorrect and is therefore in breach of Reg xxxxxx. This requires the total interest to be a constituent part to the total charge for credit as set out in Sch xx para xxxxxx.
Total charge for credit
Shown on agreement:- £1,160.00
Checker result:- £704.36
The total charge for credit is incorrect from the agreement and is therefore in breach of Reg xxxxxx. This requires the total charge for credit as set out in Sch xx para xxxxxx.
Total amount payable
Shown on agreement:- £13,400.00
Checker result:- £12,704.36
The total amount payable is incorrect from the agreement and is therefore in breach of Reg xxxxxx. This requires the total amount payable as set out in Sch xx para xxxxxx.
Declaration
We believe that the facts stated in this assessment are true and that the results shown are correct. FAS has indicated the sources of all the information that has been used in compiling this assessment.We have not (without forming an independent view) included or excluded any facts or details that may have been suggested by others. We will notify those involved in the initiation of the assessment immediately and confirm it in writing if for any reason the assessment requires any correction or qualification. We understands that the assessment (subject to any corrections before swearing) may form part of the evidence that could be given under oath or affirmation. |
