The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007

Regulation 14

SCHEDULE 2 FORMS OF WORDING AND INFORMATION TO BE INCLUDED IN STATEMENTS RELATING TO RUNNING-ACCOUNT CREDIT AGREEMENTS

1.  The following form of wording shall be contained in a statement under this Part—

“Minimum payments

If you make only the minimum payment each month, it will take you longer and cost you more to clear your balance.”.

2.  If at the end of the period to which the statement relates, the debtor has paid less than the minimum payment required to be paid by him in accordance with the agreement, the statement shall contain the following form of wording—

“You have failed to make a minimum payment

Failing to make your minimum payment can mean that you have broken the terms of this credit agreement and could result in us taking legal action against you. It could lead to your having to pay additional costs and make it more difficult for you to obtain credit in future.”.

3.  The following information shall be contained in the statement—

A statement of the order or proportions in which any amount paid by the debtor which is not sufficient to discharge the total debt then due under the agreement will be applied or appropriated by the creditor towards the discharge of the sums due in respect of:

(a) the amounts of credit provided for different purposes; or

(b) different parts of the agreement.

4.  The following forms of wording shall be contained in the statement—

“If you do not pay off the full amount outstanding, we will allocate your payment to the outstanding balance in a specific order, which is set out [NOTE 1]. The way in which payments are allocated can make a significant difference to the amount of interest you will pay until the balance is cleared completely.”;

NOTE 1: state where in relation to this form of wording this information is located on the statement;

“Dispute resolution

If you have a problem with your agreement, please try to resolve it with us in the first instance. If you are not happy with the way in which we handled your complaint or the result, you may be able to complain to the Financial Ombudsman Service. If you do not take up your problem with us first you will not be entitled to complain to the Ombudsman. We can provide details of how to contact the Ombudsman.”.