FAQs*

What is the consumer credit act 1974?

This is a piece of legislation introduced in 1974 to give people who enter into a loan agreement i.e. credit, certain protection from less than reputable lenders.
In summary, the main areas of interest regarding the act and personal loans are:

The first covers a period of time you have to reflect on whether you really want the loan after you have signed the agreement. This applies in all cases unless you signed the agreement at the lenders office or agreed to the loan over the phone direct with the lender.
The lender must then send you a letter advising you how long you have to change your mind by letting them know in writing.

The second area of interest concerns the lender who cannot demand early payment without notifying you in writing up to 7 days before trying to enforce the payment. This notice must also detail out how much of the loan is outstanding, when the payment should be made and how it can be brought to an end.

The final area is your right to have certain written information from the lender that must detail the total charge for the loan and the annual percentage rate (APR).
Usually any loan agreement will make reference to how it has complied with the Act.

*Nothing in these FAQs constitutes advice and is intended for general information purposes only. For qualified advice, please speak with UK Personal Loans Limited 08000 196 777.