The Consumer Credit Act describes the basic obligations of a provider to borrowers that you should firmly insist on. We have chosen three that we consider essential.
Right of withdrawal
Have you changed your mind about the loan? The law records you, but only fourteen days after signing the contract. This is the maximum period within which the consumer has the right to withdraw from the credit without any charge. However, fair companies can extend this period. We have decided to extend our client’s loan repayment period free of charge and any interest up to one month.
Right to be informed
The consumer is entitled to have access to sufficient data that may influence his decision. The client should be given enough time to study the contract and explain it in detail . The creditors are therefore obliged to provide the draft contract before signing it. Taking this design home is often a major problem, and many lenders do not offer this option at all.
By law you must be acquainted with:
- type of loan,
- the length of repayments and the amount of repayments,
- interest rate,
- the annual percentage rate of charge,
- with consequences in the event of inability to repay.
Early repayment of the loan
Did you get a bonus at work or did you postpone a higher amount from your budget? You can use the saved money to repay the loan early. You have the right at any time. All you have to do is ask your lender to quantify and then send the money.
It is important to announce in advance the intention to repay the loan early. Whether all or part of it. By law, lenders cannot charge more than one percent if less than a year is left by the end of the loan, even half a percent.