Your rights under a credit agreement
Statements
You can request a statement at any time, showing the amounts owing under the agreemen t. For credit cards and other running-account credit, the lender must also send you regular statements – usually monthly. From 1 October 2008 you will be entitled to an annual statement on all credit agreements. This must contain certain minimum information – Click link for information. http://www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/Postcontractinfo
Default notices
If the lender wants to enforce the agreement against you – for example because you have broken the terms of the agreement – he must send you a default notice. From 1 October 2008 this must include an OFT information sheet [http://www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/CCA2006/information/]] highlighting your key rights and responsibilities and where to go for help or advice.
Arrears notices
If you fall behind with payments by more than a certain amount, the lender will be required to send you an arrears notice from 1 October 2008. This must include an OFT information sheet [http://www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/CCA2006/information/]. A notice will also be required if the lender imposes a default sum – for example, because you are late with a payment.
If information is not provided
If the lender fails to provide information when he is required to under the law, he is not entitled to enforce the agreement, or to charge interest or default sums, until the correct notice has been sent. If in doubt, speak to a Consumer Direct adviser.
Ending the agreement early
You have a right to end a credit agreement at any time, by repaying what you owe less a rebate, calculated in accordance with regulations. You can ask the lender at any time for a settlement statement showing how much you would have to pay. There are special rules for terminating a hire purchase agreement.
Time orders
If you are having problems paying, you may be able to apply to the court for a time order giving you more time to pay – but speak to a debt adviser first. From 1 October 2008 you will be able to apply after being sent an arrears notice. For a factsheet on time orders Click here
Unfair relationships
You may be able to challenge a credit agreement in the courts if the overall relationship is unfair - for example, because of the terms of the agreement or the way the lender has operated or enforced it. Speak to a debt adviser first. The OFT has produced guidance on unfair relationships [http://www.oft.gov.uk/advice_and_resources/resource_base/legal/cca/CCA2006/unfair/].
Complaints
If you have a complaint in relation to a credit agreement, which you have been unable to resolve with the lender, you can approach the Financial Ombudsman Service (FOS). This offers a way of resolving disputes without the need for court action. You can contact FOS on 0845 080 1800 or www.financial-ombudsman.org.uk
And remember – if you have a problem with goods or services which have been financed by credit, you may have a claim against the lender as well as the supplier – Click here for more information
