Car Finance

NCA, Chapter 6 Part A

125. Consumer's or guarantor's right to settle agreement
1) A consumer or guarantor is entitled to settle the credit agreement at any time, with or without advance notice to thecredit provider.


2) The amount required to settle a credit agreement is the total of the following amounts:
a) The unpaid balance of the principal debt at that time;
b) the unpaid interest charges and all other fees and charges payable by the consumer to the credit provider up to the settlement date; and
c) in the case of a large agreement-
i) at a fixed rate of interest, an early termination charge no more than a prescribed charge or, if no charge has been prescribed, a charge calculated in accordance with sub-paragraph (ii); or
ii) other than at a fixed rate of interest, an early termination charge equal to no more than the interest that would have been payable under the agreement for a period equal to the difference between-
aa) three months; and
bb) the period of notice of settlement if any, given by the consumer.
 
The fixed monthly service fee cannot be added to settlement amount. Thieving bastards.



Actually the service fee is the maximum amount that can be charged as per the NCA and is open to negotiation.... but nobody ever bothers to query ......
 
Sinbad said:
NCA, Chapter 6 Part A

125. Consumer's or guarantor's right to settle agreement
1) A consumer or guarantor is entitled to settle the credit agreement at any time, with or without advance notice to thecredit provider.


2) The amount required to settle a credit agreement is the total of the following amounts:
a) The unpaid balance of the principal debt at that time;
b) the unpaid interest charges and all other fees and charges payable by the consumer to the credit provider up to the settlement date; and
c) in the case of a large agreement-
i) at a fixed rate of interest, an early termination charge no more than a prescribed charge or, if no charge has been prescribed, a charge calculated in accordance with sub-paragraph (ii); or
ii) other than at a fixed rate of interest, an early termination charge equal to no more than the interest that would have been payable under the agreement for a period equal to the difference between-
aa) three months; and
bb) the period of notice of settlement if any, given by the consumer.
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