If you have received something which your lender claims to be properly executed CCA you should now read it with a large magnifying glass.
It must be signed by you and must contain on a single sheet at least the following details (the prescribed terms):
The Prescribed Terms are these
A Amount of credit
A term stating the amount of credit
B Repayments
A term stating how the debtor is to discharge his obligations under the agreement to make the repayments, which may be expressed by reference to a combination of any of the following-
(a) Number of repayments;
(b) Amount of repayments;
(c) Frequency and timing of repayments;
(d) Dates of repayments;
(e) The manner in which any of the above may be determined; or in any other way, and any power of the creditor to vary what is payable.
C Rate of interest
A term stating the rate of interest to be applied to the credit issued under the agreement
D Credit limit
This may be a term or the manner in which it will be determined or that there is no credit limit.
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Which of these applies to you depends on the type of agreement you have.
For a Running Account (credit card) agreement
BC and D Apply
For a Restricted Use Debtor Creditor Supplier
- Where the dealer is the supplier and the creditor is the one providing the finance.
- The money can only be used for the purpose it is given.
- There is no interest on the purchase (the cash price is the same as the total price)
- And there is no advance payment
A is applicable
For a fixed Sum Credit Agreement
A conventional credit agreement with none of the above restrictions
A and B apply
For a Hire Agreement
B is Applicable
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Now you hopefully have the relevant information to allow you to decide whether the agreement is properly executed in accordance with the consumer credit act.
Before you go any further we would recommend registering at the CAG forums and do some more in reading, it's a veritable gold mine.
We would also recommend seeking legal advice before proceeding with any dispute.
