CAB advice: Too late to stop payments?

LAST week I signed up for a loan but I’ve had second thoughts about it. Is it too late to stop the payments?

LAST week I signed up for a loan but I’ve had second thoughts about it. Is it too late to stop the payments?

If you buy something on credit or take out a loan, changes to the Consumer Credit Act mean you now have better protection.

This includes rights such as time to cancel the agreement, or the right to pay off your debt early. The new rules also make lenders check more carefully before they offer you credit.

You will now have the right to:

– receive enough information before you take out an agreement to help you work out whether this would be the right kind of credit for you

– cancel a credit agreement within 14 days if you change your mind after signing

– settle the agreement early, either by paying off the whole amount, or part of it

– be told if your debts are sold on to another creditor

– cancel an open-ended credit agreement at any time if you give the correct notice

– be told if you’re declined credit because of information supplied by a credit reference agency (CRA). The lender must also give you details of the CRA who supplied the information.

Lenders must now also check more carefully to assess your ability to pay back the money before they offer you or increase your credit. This includes asking you for information and getting a CRA report, if necessary.

If you take out an agreement with a credit intermediary, for example, a credit broker or a shop which has an arrangement with a creditor to supply finance, you must be told whether you have to pay any extra fees to set up the agreement. The credit intermediary must also tell you if they are independent, or whether they have any links to the creditor supplying the finance.

If you have experienced problems with credit, or you think your lender may not have acted fairly when dealing with your credit application, you can get help from an experienced adviser at your local CAB.

CAB adviceline 08444 111444 or 0300 3300 650 (mobile).

For online advice read the advice guide.

Your local CAB is in Market Square