Credit Guide Factsheet

Guide to credit in the UK

Law: To authorize credit you must have a license issued by the Financial Conduct Authority(FCA)

The Consumer Credit Act 1974

The majority of credit agreements are enclosed under the act and these are known as regulated agreements.

Having a regulated agreement allows certain information to be incorporated within:

  • Amount borrowed
  • Period of time of agreement
  • Fees
  • Interest Rates
  • Payment Plan
  • Cancellation Rights
  • Total Charge for Credit
  • Annual Percentage Rate

Total Charge for Credit and Annual Percentage Rate must be integrated within the agreement otherwise it becomes unenforceable pending a court order.
Regulated agreement further entitles you to a signed (by both parties involved) duplicate of the agreement. An unsigned document or no duplicate also makes the agreement unenforceable pending a court order.
In addition you are entitled to ask for another copy to be sent upon request although there will be a fee.
Lastly, they have a duty to inform you of all the next steps to be taken before court action can take place. This includes the drafting of a default notice.

Areas Covered

  • How do you know if it is a regulated agreement?
  • Did the agreement laws change post 6th April 2008?
  • Which credit to go with?
  • Can you receive insurance to cover your payments?
  • Should you use a credit broker?
  • Can you secure a loan on your home?
  • The 'Pre-Contract Information' document
  • What if there is an issue with the product or service?
  • Can you cancel your credit related agreement?
  • Is this the same for regulated hire agreements?
  • Can the credit company cancel the agreement?
  • What are the steps taken to see if you can receive credit?
  • Credit Scoring
  • What information do the credit reference agencies hold?
  • What information is not held with the credit reference agencies?
  • Can you have your credit repaired?
  • What if you cannot pay off your credit card debt?

Download Credit Guide Factsheet