The Direct Debit Guarantee
Q: Are there any uses for which this credit agreement is not suitable? If so, what are they?
A: The running account credit agreement gives you an easy way to spread the cost of your insurance premium over a period of time. It is specifically designed for the repayment of insurance premiums and isn't suitable for any other use.
Q: What will it cost me?
A: You will have to pay back the money you draw down under the agreement and pay interest, a facility fee (if charged) and any credit arrangement fee you may have been charged by your broker if you have chosen to fund this with us. Your minimum monthly payments are calculated by adding interest to the amount you’ve drawn down and dividing that total by the number of months over which the money is to be repaid. These have already been provided to you and will be confirmed in your Welcome Pack sent by Close Brothers Premium Finance on completion of your application.
Q: Are there any features of the credit agreement which could have an adverse impact on me?
A: Yes. As the insurance policy forms the security for your credit, your insurance policy is at risk of cancellation if you fail to meet your repayment obligations. If your insurance policy is cancelled in such circumstances, Close Brothers Premium Finance has the right to receive any proceeds or refunds paid. They will use these funds to reduce the amount you owe.
Q: What will happen if I do not pay my minimum monthly payments on time?
A: You may have to pay a charge plus interest if Close Brothers Premium Finance doesn’t receive a minimum monthly payment on time. If you are in breach of the terms of the credit agreement, Close Brothers Premium Finance may have a right to terminate it and in such circumstances a termination fee may be charged. These fees are set out in the Standard European Consumer Credit Information (SECCI). Close Brothers Premium Finance may enforce any security given under the terms of the credit agreement, which will result in the cancellation of your insurance policy. You’ll be liable to pay all sums owing to Close Brothers Premium Finance, as well as any charges. Your credit record may be affected, and you may find it harder to borrow from Close Brothers Premium Finance or another lender.
Q: Do I have any right of withdrawal? If so, what are the terms?
A: You have the right under the Consumer Credit Act 1974 to withdraw from your credit agreement without giving any reason before the end of 14 days beginning on the day after:
a) the day you sign a credit agreement that has already been signed by Close Brothers Premium Finance
or
b) when you sign the credit agreement before Close Brothers Premium Finance your right starts when you receive a copy of the agreement signed by both of us.
If you wish to withdraw you must give Close Brothers Premium Finance notice by one of the following methods:
- by telephone on 0333 321 8566
- by e-mail to customerservicespf@closebrothers.com; or
- by post or delivery to Close Brothers Premium Finance, Wimbledon Bridge House, 1 Hartfield Road, London, SW19 3RU.
If you withdraw as described, the credit agreement is treated as if it was never entered into and you must repay the amount of credit within 30 days beginning with the day after the day you notified Close Brothers Premium Finance of your intention to withdraw. You will not have to pay Close Brothers Premium Finance any interest or charges but you will have to make alternative arrangements to pay for your insurance.
Q: How can I get further information about my credit agreement?
A: If you have any questions or you would like more information, you can call Close Brothers Premium Finance on 0333 321 8566 at any time between 9:00am and 5:30pm, Monday to Friday. You can also contact Sure Thing! on or by emailing motor@policyexpert.co.uk.