Getting A Quote

When you enquire about a loan or credit deal, the lender or shop must normally give you a written quotation covering certain details about the loan if it's a regulated one, or one secured on your home. But a quote doesn't. have to be given if the goods or services you're interested in cost no more than £100, or full details of the loan are prominently displayed in the shop when you visit it, or in certain other circumstances.

The quotation must include information such as the name and address of the lender, the cash price of the goods or services you want, the amount of any deposit that you have to put down, the number, frequency and amount of the repayments, the need for any security, the total amount that you'll have to pay over the period of the loan, and the total cost of the loan expressed as an Annual Percentage Rate (APR - see below), and whether the interest rate or any other costs are variable. There must also be a note saying how long the quote is valid.

If the lender can't give you a quote because, say, they haven't got enough information about you or your needs, they can either write to you for the details they need, or they can supply you with a quote based on assumptions which they must make clear.

TIP - Unfortunately, shops in particular are sometimes very lax about producing proper quotes despite the requirements of the law. Don't be fobbed off by counter staff; insist on seeing the manager or someone else who can give you the proper details.


For more information about Compensation

Guarantors

If you're having difficulty getting a loan, a lender might be more willing if you can find someone to act as guarantor. This means that in the last resort the guarantor will pay back what you owe if you can't. But before going down this course you should consider whether it would be better to do without the loan. Be wary of acting as a guarantor yourself - you could be left out of pocket. And make sure that you cancel in writing your agreement to act as guarantor once the loan has been repaid otherwise you could find yourself liable for other loans subsequently taken out by the same borrower.Guarantors


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