Last week I signed up for a loan but I’ve had second thoughts about it. Is it too late to stop the payments?
If you buy something on credit or take out a loan, changes to the Consumer Credit Act mean you now have better protection.
This includes rights such as time to cancel the agreement, or the right to pay off your debt early. The new rules also make lenders check more carefully before they offer you credit.
You will now have the right to:
- receive enough information before you take out an agreement to help you work out whether this would be the right kind of credit for you
- cancel a credit agreement within 14 days if you change your mind after signing
- settle the agreement early, either by paying off the whole amount, or part of it
- be told if your debts are sold on to another creditor
- cancel an open-ended credit agreement at any time if you give the correct notice
- be told if you’re declined credit because of information supplied by a credit reference agency (CRA). The lender must also give you details of the CRA who supplied the information.
Lenders must now also check more carefully to assess your ability to pay back the money before they offer you or increase your credit. This includes asking you for information and getting a CRA report, if necessary.
If you take out an agreement with a credit intermediary, for example, a credit broker or a shop which has an arrangement with a creditor to supply finance, you must be told whether you have to pay any extra fees to set up the agreement. The credit intermediary must also tell you if they are independent, or whether they have any links to the creditor supplying the finance.
If you have experienced problems with credit, or you think your lender may not have acted fairly when dealing with your credit application, you can get help from an experienced adviser at your local CAB. For more information go to www.adviceguide.org.uk
I have worked in a bar full time for over a year and have only been allowed to take five days off so far. When I asked my boss if I could take two weeks holiday later in the year he refused, telling me I was only entitled to five days off a year. I’m sure this can’t be right, but I’m worried about losing my job if I kick up a fuss. Is there anything I can do?
Like most full-time workers, you are entitled to at least 28 days' paid holiday a year (5.6 weeks) including public holidays. This is a legal right.
Your contract of employment may give you the right to take more than the statutory amount of paid holiday, but it cannot give you less. To help you work out your exact entitlement, you can use the calculator on the Business Link website at www.businesslink.gov.uk
You don’t have an automatic right to take bank or public holidays off work, with or without pay., but your employment contract may give you bank or public holidays off on top of your statutory holiday. If this is the case, your contract should specify this and also say whether you will be paid for these days.
If your employer refuses to let you take holiday, or refuses to let you take holiday at a particular time, try to sort it out informally with them first. If this doesn't work, get advice as soon as possible from your trade union if you belong to one, or from an experienced CAB adviser. You may be able to take your case to an employment tribunal, but there are pros and cons to think about if you are considering this course of action.
For details of your nearest CAB, including those that give advice by e-mail, go to the Citizens Advice website www.adviceguide.org.uk
I have heard a lot in the news lately about PPI and I think I may have been mis-sold one of these insurance policies when I took out a loan. What should I do now?
There has been an important new High Court ruling about Payment Protection Insurance, or PPI. This is insurance you can take out when you take out a loan or a mortgage, to cover your repayments if you get ill or lose your job.
Some people have been sold PPI without being told that it is something separate to the loan they are taking out. This is mis-selling. Other people have been mis-sold PPI because the policy doesn't cover their circumstances and they would never be able to make a claim on it - for example self-employed people.who were sold policies excluding self-employment.
The High Court ruling means that firms selling PPI will have to review past sales of their policies, even where customers have so far not complained. Firms may need to contact all past and present customers to find out if they want to complain.
If you think you were mis-sold PPI, you can complain to the firm that sold you the policy. If they refuse to deal with your complaint or to give you a refund for the policy, you can make a further complaint to the Financial Ombudsman Service.
Banks who have sold PPI are working towards contacting customers who may be affected. They advise that if you have already made a complaint, you do not need to do anything. Your bank will be in touch with you as soon as they have processed your complaint.
If you are unhappy with the outcome of a complaint, you can complain to the Financial Ombudsman Service. For more information, go to their website at: www.financial-ombudsman.org.uk, or phone them on: 08000 234 567 (free for people phoning from a fixed landline) or 0300 123 9 123 (free for mobile-phone users who pay a monthly charge for calls to numbers starting 01 or 02).
For more information about PPI, and for contact details of your nearest CAB, see the Citizens Advice website www.adviceguide.org.uk and go to the Payment Protection Insurance pages.