Credit Agreement With Customers
If you do not comply properly with consumer credit rules, executing a credit contract against a customer is only possible through a court order. Some agreements reached before April 6, 2007 may not be applicable at all. With respect to the management of one or more accounts that must be opened to cover both credit payment and usage; You must provide the customer with a copy of the signed contract as well as the details of its cooling rights. And they can ask for another one at any time. If the customer misses payments or falls more than a certain amount, you must provide payment notices in case of a delay. You must also indicate whether you intend to impose a late amount – for example. B if you violate the agreement by missing a rate – or if you collect interest. A credit contract is a legal contract issued by a lender that provides for the terms of credit renewal to customers for a specified period, in accordance with the strict requirements of the Consumer Credit Act 1974. The credit contract describes all the rules and rules that are related to the contract. These include the interest payable on the loan and when and how it should be repaid. Bank customers can terminate the contract without having to justify their decision with respect to the credit institution. If you offer or offer credit to consumers, you must comply with the Consumer Credit Act and all relevant rules. Contractual terms must also comply with unfair clauses in consumer contracts – see customers` rights to challenge abusive contractual clauses.
The consumer may also request a free copy of the draft credit agreement, unless the lender already knows at the time of the application that it does not intend to enter into a contract with the consumer. Lenders fully announce all the terms of the loan in a credit agreement. The important credit terms included in the credit agreement include the annual interest rate, the application of interest on outstanding balances, all account-related fees, the duration of the loan, payment terms and possible consequences for late payments. In some cases, the consumer may challenge the agreement in court and bring legal action because the relationship as a whole is unfair to the borrower. Consumers have 14 days to cancel the credit contract. They may inform the lender, either in writing or orally, that they wish to exercise their right of withdrawal. Consumers do not need to justify their decision to opt out of the credit contract. 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.