Government rounds on loan agreement 'clarity'

The government has introduced new rules on lending, which will bring “a new level of clarity” to loan agreements.

Under the new rules, lenders will have to provide customers with pre contractual information, which will set out the main factors of the loan, such as the total amount borrowed and the amount that has to be repayed; the amount and frequency of repayments and APR. Lenders will also be required to display this information clearly on the loan agreement, as well as provide separate information on the agreement regarding additional payment protection insurance.

The new regulation also includes protection for borrowers who wish to settle loans early. Under the new rules, lenders will still be able to recoup some administration costs, but the burden placed on consumers repaying loans early will be reduced.

The new regulations follow the re-introduction to Parliament of the Consumer Credit Bill, which contains more changes to Britain’s consumer credit laws, which have not been reformed for three decades.

Commenting on the new regulations, Consumer Minister Gerry Sutcliffe said: “Hidden payments and lack of clarity are very unhelpful for people trying to manage their credit commitments, which is why we’ve brought in these changes.

“The pre-contractual information will help people shop around and make informed choices between the different products available to them and the new level of clarity on loan agreements will mean that no-one is in the dark about what they are signing up for.”


Related Northern Ireland Business News Stories
Click here for the latest headlines.

10 February 2015
Purepipe To Invest £250,000 And Create Six New Jobs
Belfast-based Purepipe is investing £250,000 and creating six new jobs as part of plans to boost sales in Great Britain and the Republic of Ireland. Invest Northern Ireland has offered the company £45,000 towards its expansion which involves investing in new state-of-the-art specialised pipe manufacturing equipment needed to target new business.
04 April 2012
Invest NI Information Service Helps Westland Launch New Product
Westland Horticulture in Dungannon has been assisted by Invest Northern Ireland to launch a new range of bird care products in the United Kingdom.
05 January 2016
Pale Blue Dot Announces Five New Posts
Belfast based creative agency Pale Blue Dot is taking on five new staff as part of an ambitious growth strategy. Invest Northern Ireland has offered the company £37,500 of support for the new jobs which will see the company increase its workforce to 11 staff in the next 18 months.
06 May 2015
Technology Services Firm Creates Five New Jobs
Antrim technology services company Outsource Solutions (NI) Ltd is creating five new jobs, with support from Invest NI. The new staff will help the company grow sales and service new customers in Great Britain and the Republic of Ireland.
14 November 2008
Republic's Minister Welcomes Subway Jobs Boost
Irish Enterprise Minister Mary Coughlan has welcomed Subway's decision to significantly increase its operations across Ireland The development will be over the next two years - a move that is expected to create 1,300 new jobs.