You must provide the consumer with all of the following information: General scope of the lawObligations and information Penalties Other issues to be taken into account in contractual negotiations If you sell to a consumer without personal contact (i.e. distance selling), you must provide the consumer with all the information listed below in good time before the consumer concludes the contract with you. You must provide this information in a clear and comprehensible manner that corresponds to the type of distance communication you are using to conclude the contract. Document Content: There is no rule that the title of a pre-contractual document prevents it from being a legally enforceable contract. Therefore, the interpretation of the wording of the main part of the contract preliminary document will also be a key factor in determining whether it should have legal effect. It should be checked whether all the elements of a legally enforceable contract are present, i.e. offer, acceptance, consideration, etc. If all the elements are present, the pre-contractual document can be considered legally binding, although its title suggests otherwise. For most regulated credit agreements, businesses are required to provide this information in a format that reflects the main features of the proposed credit agreement. The format is prescribed in the Consumer Credit Directive and set out in the Consumer Credit (Disclosure of Information) Regulations, 2010. It is known as the European Consumer Credit Information Form (SECCI). The pre-contractual information you need to provide becomes a contractual condition. If the information is incorrect, you would have violated this condition.
Under the Consumer Rights Act 2015, the consumer can claim damages from you equal to the costs incurred as a result. FCA Consumer Credit Sourcebook (CONC) 2.7 for certain distance contracts As the name suggests, pre-contractual information (PCI) consists of mandatory information that must be provided to a potential borrower under a regulated credit agreement before the credit agreement is performed. Depending on the applicable rules, the information may have to be presented in a prescribed form and accompanied by mandatory declarations of protection and remedies. for a home loan agreement that would refinance an existing home loan agreement and also include an increase in the amount of outstanding capital, and where another option might be to enter into a separate home loan agreement with the lender for the amount of additional capital, the information should include an explanation of the difference. if applicable, between the weekly amount to be paid and the total amount to be repaid for a refinanced loan, in relation to the situation in which the borrower takes out a separate and simultaneous loan. If the normal period after which the next payment is due is not weekly, but a different period, the lender should refer to that other period.7 For more information about this, please contact Alexander Hansebout at ALTIUS by phone (+32 2 426 1414), fax (+32 2 426 2030) or e-mail ([email protected]). In English and Welsh law, it is generally accepted that for a legally enforceable contract that creates rights and obligations, there must be: the effect of debt consolidation involves the payment of a higher interest rate or fees, or both (if the relevant information about the existing debt is known to the lender or credit intermediary); Lenders must provide at least all the information specified in SECCI: they can provide potential customers with additional information on a separate information sheet. The information differs depending on whether it is an on-site, off-site or remote contract.
There are also information requirements for contracts concluded by electronic means, which are set out in another set of rules – the Electronic Commerce (EC Directive) Regulations 2002 (hereinafter referred to as the ”Electronic Commerce Regulation”). a copy of any other document or information relating to the agreement provided to the guarantor by the creditor or credit intermediary. Pre-contractual information must be provided ”in a timely manner” before the customer is bound by the contract. The definition of ”timely” should mean that the financial service provider cannot unreasonably delay the provision of pre-contractual information and that the customer must be able to take with it the information associated with a proposed regulated agreement for further consideration. The customer is not obliged to withdraw the SECCI if he wishes to proceed immediately with a request. Neither a lender nor a credit intermediary may require a customer to acknowledge that the information and explanations it provides are sufficient to meet the requirements of CONC 4.2.5 R. In the case of an off-premises contract, you must provide the consumer with all the information listed below in a legible, clear and comprehensible manner before the contract is concluded. You must provide it on paper, unless the consumer agrees that you will instead provide it on another durable medium (see Regulatory Requirements for Consumer Contracts for a definition of ”durable medium”). Advise the client on how to ask the company for further information and explanations.
The practical application of this principle is summarized by the Consumer Credit Rules on Pre-Contractual Disclosure (CONC 4). By requiring a lender to disclose pre-contractual information, reasonable explanations and other risk warnings to the borrower ”in a timely manner” before deciding to enter into a loan agreement, the borrower can make an informed decision about entering into the loan agreement. For more information on the conditions for entering into contracts, see Practical note: Consumer credit agreements – Contract requirements. However, you do not need to provide this information if it arises from the circumstances or if it is a daily transaction executed immediately (for example. B sale of goods in a store). If the grantor does not include any of the necessary information in the separate information document, the beneficiary may invoke the nullity of the provision concerned up to 10 years after the date of signature. Can the agreement be signed as soon as the information is provided? The licensor must provide the information to the beneficiary at least one month before the contract is signed. No commitment may be made during this standstill period and no remuneration or guarantee may be demanded or paid. the purpose of the loan, whether the lender or (if applicable) the credit intermediary knows what this purpose is;4 In the case of telephone or in-person transactions, the interaction between the customer and the company`s representative is also important.
It should be made clear to the customer that the customer may ask questions or request additional information or explanations and that, for example, an agent who merely provides the customer with a written explanation of an agreement or relies solely on a script written in connection with an agreement is unlikely to meet the requirement of CONC 4.2.5 R. Finally, and on a more commercial note, if a carefully drafted pre-contractual document does not create legally binding obligations, there is still the practical risk that once signed, it will be practically or morally difficult to renegotiate terms if a problem arises during the final contract negotiations that may not have been considered from the outset. All contractual information must be presented to customers in a clear and concise manner. Document Title: The common factor in most pre-contractual documents is that their titles imply that at the time of signing, there may not be ”the intention to create legal relationships, but that their purpose is to indicate the `intent` or `understanding` of the parties. They are generally designed as a non-binding record of the terms that may have been agreed in principle before the conclusion of the contract. In order for a regulated credit agreement that is marketed and concluded electronically to comply with CONC 4.2.5, the customer must go through screens with the necessary information and explanations that give him the opportunity to see and read the statements provided. . .