What is a pre-contract credit information?

For most regulated credit agreements firms are required to provide this information in a format which captures the key features of the proposed credit agreement. This usually requires pre-contract disclosure (taking the customer through the pre-contract information) before the customer signs or approves the agreement.

What is a customer credit agreement?

a consumer credit agreement is an agreement under which credit is extended to an individual. These include credit sales, hire-purchase, secured and unsecured loans; they may be bipartite debtor-creditor agreements or tripartite debtor-creditor-supplier agreements.

What should be included in a credit agreement?

Important lending terms included in the credit agreement include the annual interest rate, how the interest is applied to outstanding balances, any fees associated with the account, the duration of the loan, the payment terms, and any consequences for late payments.

What responsibilities do you have when agreeing to a credit agreement?

You must ensure the proposed credit agreement is adequately explained to the borrower. This should cover: any potentially adverse features which may operate in a way the borrower might not expect – eg how repayments are allocated for credit cards. the cost and other consequences of missing payments.

What is a pre-contract agreement?

noun. a preexisting contract that legally prevents a person from making another contract of the same nature. (formerly) such an agreement constituting a legally binding betrothal. verb (used with object) to bind by means of a precontract.

What is a pre-contract loan agreement?

Consumer credit pre-contract requirements By requiring a lender to disclose pre-contract information, adequate explanations and other risk warnings to the borrower ‘in good time’ before they decide to enter into a credit agreement, the borrower can make an informed decision about entering into the credit agreement.

What is credit agreement and example?

A credit agreement is an agreement between a credit provider and a consumer where the credit provider sup- plies goods or services or lends money to the consumer with a deferral or delay of pay- ment, and fees and interest are charged for the deferred payment. It is a legal contract. It sets out all the terms and.

Who is subject to consumer credit rules?

Consumer credit regulations apply to agreements, regardless of the amount of credit or the cost of the hire, where the borrower or hirer is: an individual. a sole trader. a partnership with three or fewer partners.

What is a credit agreement in terms of the National credit Act?

A credit agreement is an agreement entered into between a credit provider and a consumer in which the credit provider supplies goods or services or lends money to the consumers.

What are 3 important federal laws regulating consumer credit?

The CCPA includes several important laws, including the Truth in Lending Act, Fair Credit Reporting Act, and Fair Debt Collection Practices Act.

What is Section 75 of the Consumer Credit Act?

What is Section 75? It’s part of the Consumer Credit Act 1974 that means your credit card provider is jointly and severally responsible for any breach of contract or misrepresentation by a retailer or trader.

Is a pre-contract legally binding?

They are usually intended as a non-binding record of the terms that may have been agreed in principle prior to finalising the contract. Document Content: There is no rule that a Pre-Contract Document’s title prevents it from being a legally enforceable contract.

What is included in the pre-contract credit information?

(4) For the purposes of these Regulations, the pre-contract credit information comprises— (b) the identity and geographical address of the creditor and, where applicable, of the credit intermediary, (c) the total amount of credit to be provided under the agreement and the conditions governing the draw down of credit.

When does a creditor not have to disclose pre contract information?

(3) Paragraph (2) does not require a creditor to disclose the pre-contract credit information where it has already been disclosed to the debtor by a credit intermediary in a manner which complies with paragraph (2). (4) For the purposes of these Regulations, the pre-contract credit information comprises—

Do you need to read the pre contract information?

A) It is very important that you read the pre-contractual information (known as the Standard European Consumer Credit Information or SECCI) included within your Welcome Pack and take time to consider it carefully.

Why do I need a copy of my credit agreement?

You have rights to ask for personal information from creditors and other organisations because of two laws: the Consumer Credit Act 1974. The kind of information that you can get is different under each law. The Data Protection Act gives you the right to access personal information held by the organisation about you.