Some advice would be much appreciated
Stupidly I took out a £400 loan with a cheque cashing company.
I was paying £80 interest per month as an extension fee, or my cheques went to the bank.
I could not keep on paying £80 per month and not reducing the debt so I cancelled my cheque book with the bank and phoned the creditor to say I could afford to pay £40 per month.
I also informed them I was in financial difficulties. Their response was to add £100 onto the amount outstanding, meaning I am now repaying £500.
Please can someone tell me if any of the terms in the credit agreement could be deemed unfair, and what action I can take, or what agencies could take action for me.
(The text of the credit agreement below...)
CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974
Agreement No ******
Tel: **** *** ***
IMPORTANT –YOU SHOULD READ THIS CAREFULLY –YOUR RIGHTS
The Consumer Credit Act 1974 covers this Agreement and lays down certain requirements for your protection
which must be satisfied when the Agreement is made. If they are not, the creditor cannot enforce this agreement
against you without a court order.
The Act also gives you a number of rights. You have the right to settle this Agreement at any time by giving
notice in writing and paying off all amounts payable under this Agreement.
If you would like to know more about the protection and remedies provided under the Act, you should contact
either your local Trading Standards Department or your nearest Citizens’ Advice Bureau.
THE CREDIT LIMIT OF £100.00 may be varied to such sum as may be determined by the
Creditor and notice of it will be given to the customer.
INTEREST will be charged at a rate of %on the credit provided, calculated at 20.00%of
the face value of the cheque payable in advance. The Interest Rate may be varied when any change is
made to the Bank Rate and notice will be given to the customer in writing.
REPAYMENT is by presentation of each cheque 30 days from the date of the cheque
AMOUNT OF EACH REPAYMENT is equal to the value of each cheque
THE APR in respect of this service is 1413.1
Signature for (or on behalf of) Creditor
You may during the currency of the agreement:
· receive advances on your cheques providing the total value not yet repaid is less than the Credit Limit.
· within the terms set out in the Financial Information, select a different date for presentation of a cheque.
· that signature to this agreement acknowledges receipt of a true copy of the agreement
· if your cheque is not honoured we may share information about you and your account with other
· to a creditor making a credit reference and fraud prevention Agency search which may be recorded
by the Agency concerned and shared with other creditors
· the creditor may disclose to such agencies how you conduct your account
· if you default or are suspected of fraud that other lenders may use this information
about you and others with whom you are financially linked for credit assessment,
debt tracing, and fraud and money laundering prevention.
You have a right to be told which Agency we use to obtain from the Agency a copy of your file.
You must tell us within 14 days if you change your name or address.
We will require you to pay all our expenses and legal costs as follows:
· if a direct debit or cheque is not honoured
· the amount of any other losses or reasonable costs we incur (but are not limited to) for tracing you,
notifying you of the breach, communicating with you about the breach and enforcing payment due
under this Agreement.
· end this agreement after giving you proper notice in writing if:
o You fail materially to fulfil your obligations set out in any part of the agreement
o You have given false information in connection with this agreement
o You commit an act of bankruptcy (such as failing to pay a debt as ordered by a Court)
· allow another person to take over our part of the agreement, that person will then take over
all rights and responsibilities under the agreement
· charge default interest on arrears as long as they are in arrears at the rate set out above.
By signing this agreement you agree:
· That the details you have given are true and complete;
· To pay the Creditor the instalment as set out in the Financial Information;
· To the Terms and Conditions below.
We may use the details we have about you to provide you with information about other products or services
offered by us or other persons. If you do not wish to receive this information please write to us at the above
address or tick this box.
This is a credit agreement regulated by the Consumer Credit Act 1974.
Sign it only if you want to be legally bound by its terms.
Signature of Customer
Date of Signature
Creditors copy (copy must be given to Customer) 73.1v3 Debtor Creditor Unrestricted Use Executed Running Account Non Cancellable (Adv) © CCAUK 2001. This agreement may not be copied or reproduced.
THE CONSUMER CREDIT ASSOCIATION Promotes high standards of business and consumer relations in the home credit industry. The Association has over 800 full and associate members who range from large public limited
companies to small firms providing cash loans or the sale of consumer goods or gift vouchers on credit and cheque encashment. The Association has a Code of Practice to which their members must subscribe. If you would like
a copy of the Code of Practice or information about your rights as a consumer in relation to this agreement, contact: The Consumer Credit Association, Queens Road, Chester CH13BQ. Tel 01244 312 044 Fax 01244 318035