CONSUMER CREDIT AGREEMENT

FIXED SUM LOAN AGREEMENT TERMS & CONDITIONS

 These terms and conditions are suitable for use in England, Wales and Scotland by a company when providing the loan of a fixed sum – with interest - to another business.

What the terms and conditions contain

 The following terms and condition provide a framework within which you - the creditor – can lend money or provide goods and services on credit to another business within the terms of the Consumer Credit Act 1974.  This agreement deals with key financial information, such as the amount of credit and the duration of the agreement, as well as providing for standard business eventualities, like resolving disputes and the right to cancel.

How to use the terms and conditions and why you should use them

 Before you enter into an agreement to loan money, or provide goods and services on credit, these terms and conditions must be agreed by both parties. Once these terms and conditions are signed then they become effective as the set of guidelines that will apply until the money has been repaid.

 It is important to ensure that you have a framework such as this in place before you enter into a fixed sum loan agreement as this can save both time and money in the long run, should any disputes or queries arise further down the line.  Having everything clearly set out in writing – and signed – prevents any selective memory loss or issues with forgotten agreements.  Using these terms and conditions will also ensure that your loan falls within the requirements of the Consumer Credit Act 1974.

Standard content

 These terms and conditions contain all the standard ‘boilerplate’ clauses that are required in fixed sum loan agreement.  These cover the mechanics of the loan and are listed below:

• Key financial information, including the amount of the loan and the number of repayments.
• Other financial information, such as the total charge for credit.
• Key information with respect to early settlement or repayment of the loan.
• The borrower’s rights under the Consumer Credit Act 1974.
• The consequences of missing payments.
• The borrower’s right to cancel.
• The way in which payments should be made.
• The consequences of a default.
• Procedure for notices and complaints.
• Language, jurisdiction and the application of the Consumer Credit Act 1974 to certain entities.

This document is specifically aimed at the supply of a fixed sum loan

 This document will not provide an effective structure for anything other than a fixed sum loan.

 If you are looking for terms and conditions for the supply of services, or any other document, please see our contents pages.

 

File Type: Word File