26 Kwi Pre-contractual information
The lender must provide certain pre-contractual information, including before a customer enters into a credit agreement
- an 'adequate description' of numerous certain attributes of the credit contract, so that you can place the client able to evaluate if the contract matches their needs and financial predicament;
- the Standard European customer Credit Suggestions, which contains detailed information concerning the credit contract; and
- a synopsis field, made to lay out key details about the bank card item in an easy, standard structure, so as to make it simple for clients to comprehend and compare charge cards.
The lender must undertake a reasonable assessment of the creditworthiness of the customer before entering into a credit card agreement. The assessment should account for not just the client's capability to repay the proposed credit inside a period that is reasonable additionally the possibility when it comes to commitments underneath the credit contract to adversely influence the consumer's financial predicament. The evaluation needs to be predicated on 'sufficient information' obtained through the client 'where appropriate' and a credit reference agency 'where necessary'. The financial institution must execute a brand new creditworthiness check before considerably increasing a client's borrowing limit.