Can anyone help with credit agreement querie ??

Question

What is the legal requirement on a credit agreement, I checked online and got (from CAB) that they have to have 2 signatures (customer and lender) to be legal but what about agreement numbers, dates ect...
What makes it legally binding ?
Can't seem to find anything (understandable) more when I google.

If my copy of the agreement has only one signature and the one the finance company has, has two so fundementally they do not match , is this legally binding?

Answer 1

In general four important elements must be present in a credit agreement. If any of these are absent, the agreement will generally be unenforceable. That means that the company cannot legally re-claim the money they have loaned you. The things to watch for are:

1) The agreement must specify the names and addresses of both parties, that is you the borrower and the lending company, and must be signed by, or on behalf of each. If there is a guarantee, this must also be in writing and signed by all parties.

2) You should receive a copy either at the time you sign or within 10 days of making the agreement (this also applies to any guarantors for your credit repayments). If a signature is missing on your copy of the agreement, request a copy from the finance company.

3) The agreement must tell you about your right to a 10-day cooling off period within which you are entitled to change your mind. You may be asked if you want to sign away this right, for example if you need the money or the goods straightaway.

4) The agreement must also tell you about any costs or penalties that you may have to pay if you default on payments, or otherwise break the terms of the agreement; although these rules do not apply in every case, e.g credit card, overdraft and housing loan agreements are exceptions.

It is difficult to give anything other than general advice without seeing the agreement, but if you are unsure, contact the office of fair trading. Some finance companies charge extortionate intersts rates, and may be invalid, but the OFT can advise on that, for free.

Answer 2

For a contract to be legally binding it has to be signed by both parties, nothing else is required although dates and agreement numbers should be on the agreement. Always sign the date when you put your signature to anything.

Answer 3

If the agreement is regulated by the Consumer Credit Act 1974 you should heve been handed a copy when you signed it AND have been sent another copy when the lender signed it. If you haven't received the second copy you need to talk to the lender to make sure it was sent and when. If it wasn't sent, see a solicitor.

Answer 4

Any contract must be dated and signed by each party. I doubt that there are any more regulations on a credit agreement

Answer 5

It depends on where you live and whether your trying to get in or out of a the contract. My advise is spend the $65.00 in Missouri to talk to a lawyer to know your rights.

Hope this helps