Re: Cancelling Car Finance

Moneylending agreement information

Moneylenders are required under the Consumer Credit Act to provide their customers with detailed lending agreements that show the total cost of credit and the rate of interest, plus any collection charges that may apply. No other charges, such as administrative or transaction costs, are allowed to be applied by the lender. The lending agreement must also be signed by both the lender and the customer.

The agreement must also notify the customer of your right to a ten day "cooling-off" period in which you can inform the lender in writing that you have decided not to proceed with the loan. This right is guaranteed under Section 50 of the Consumer Credit Act but the law also allows moneylenders to ask customers to waive this right. If a moneylender and a customer agree that that neither wish to observe the ten-day cooling-off period, a separate signature by the customer is required in a prominent position on the lending agreement stating that they are consenting to waiving their rights in this regard. It is not legal for moneylenders to require that customers sign this waiver in order to receive the loan, but customers should bear in mind that the moneylender can decide to withdraw their services at any time prior to the signing of a loan agreement and that the customer will not receive the cash or goods until after the ten-day cooling-off period if they decides to observe it.

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