Credit agreements

[steelmanjim]

Am I right thinking that when signing up for a credit agreement you must, by law, be told the total cost of the agreement & total interest you have to pay? If you are not told, is this regarded as mis-selling?

[Chris_Sleeps]

It depends on context. If all the information is in a contract and you've signed then you have no leg to stand on.

 

Edit; being missold is normally a term used for Payment Protection and products like that. It would be a rare case where you were missold credit.

[steelmanjim]

Thanks for your feedback Chris.

[davyboy]

This is from the CAB adviceguide: (my bold)

 

Information the lender should give you about a credit agreement

 

Lenders should you give you the following pre contract information before you sign an agreement, so that you know what you are signing up to:

 

details of the goods and services you have asked for

the amount of credit or credit limit

the interest rate

how you should repay the amount borrowed including how much you will have to pay, the amount of the instalments and how often payments are due.

 

In practice lenders often only give you this information just before they give you the agreement to sign. You shouldn't feel under pressure to sign an agreement if you haven't had time to read the information and take it in. You can always ask to take away the information to look at and come back to sign the agreement later.

 

Once you have signed an agreement, the lender should send you a statement at least once a year, showing what you owe under the agreement. But you can ask for a statement at any time.

 

Note:http://www.adviceguide.org.uk is full of useful info.