The goods may be taken back in the event of default without a court order, unless the customer has paid one third or more of the total amount to be paid under a regulated credit agreement; 4. Duration of performance of the obligations assumed under the loan agreement. The date of repayment of the loan is specified in the agreement (see section 3.1.). On that date, the entire loan must be repaid. If a payment schedule is prescribed in the agreement, payments are made on the basis of the payment plan. Different interest rates and fees apply to different elements of the loan granted (e.B. higher cash withdrawal costs); the risk to the customer resulting from the loan (plus the higher the total cost of the loan relative to the customer`s financial situation);4 Even if a customer indicates or implies that no explanation of the regulated credit agreement is required, the lender or credit intermediary must continue to comply with CONC 4.2.5 R. The creditor or credit intermediary shall allow a customer to request and receive additional information and explanations about a regulated credit agreement without incurring unreasonable costs or delays. Separate rules apply to the termination of a hire-purchase or conditional purchase agreement. If the customer misses payments or defaults on more than a certain amount, you must cancel the overdue amounts.
You must also cancel if you intend to impose a default amount – e.B. if they violate the agreement due to the absence of a payment – or to charge interest on it. If the pre-contractual disclosure requirements are not met by the lender, the agreement may not be enforceable without a court order and the lender may have breached its regulatory obligations. This last point should be at the forefront in the minds of businesses, as it is unlikely that the FCA will be reluctant to exercise its enforcement powers against companies that do not, interaction is an important element of compliance with the requirement of CONC 4.2.5R (1), for example if the agreement is marketed and concluded electronically. In the case of an online application, the requirement of CONC 4.2.5R (1)(c) (right to ask questions) may be fulfilled by the customer being able to access a corresponding complete set of answers to frequently asked questions about the contract or by speaking to a representative of the provider online. in the case of hire-purchase agreements and conditional purchase agreements: 4CONC 4.2.5R(1) requires the customer to receive an appropriate explanation of the facts in CONC 4.2.5R(2). If more than one customer acts jointly as a “co-borrower”, the creditor or credit intermediary should consider whether to provide separate statements to each customer and whether the statement should be the same or different for each customer, rather than giving a single explanation to all together. (If the borrower is an unregistered partnership or association, members or partners may be treated as a single customer.) an undertaking should conclude a regulated credit agreement; and if the regulated credit agreement is a contract in which a person4 can pledge an item: a person other than the borrower (generally referred to as “the guarantor”) must provide collateral or set-off (or both) in relation to the regulated credit agreement. . . .