I have studied a contract from Provident Personal Credit who is offering a “Handy Cash Loan” to a customer and in this essay I will be looking at whether the terms in this contract are effective for the needs of all the parties involved, which are Provident Personal Credit and the customer. I will be looking at how the business protects itself from non-payments and what rights the customer has within the agreement through government legislation. The Terms and Conditions
We agree to lend you the amount of credit shown overleaf on the terms set out on this page and overleaf. This term set out in the agreement allows both parties to know what the exact amount has been agreed to be loaned to the customer from the firm. This protects the customer from receiving a lower amount than expected and protects the firm by stating that the amount will only be loaned under all the terms that they have set out in the contract. You agree to pay us the total amount payable by the instalments, both figures shown overleaf, paid direct to your agent calling weekly at your home. This term set out in the agreement allows the customer to know what exactly is included in their instalments such as interest and what the actual cost of the credit is. This links in with the Consumer Credit Act 1974 which states that the firm must give the customer a written copy of the agreement setting out: •The true cost of the credit, called the Annual Percentage Rate (APR). •The amount of each payment, when it is due to be paid, and how it is made up (loan, interest, administration charge).
We will supply you with a payment book. You must:
•Keep the book safe and not write in, damage or deface it. •Make the payment book available to your agent to update as often as necessary. •Provide the same on request, so that we may update it or inspect it or take it away for...