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CCA (Consumer Credit ACT 1974)

With effect from the 6th April 2008 new legislation was introduced removing the upper loan amount limit making all new personal loans, whether secured or unsecured, regulated under the Consumer Credit Act 1974

CCJ (County Court Judgement)

A court order, usually against a borrower who has defaulted on credit payments. If settled within 30 days it won’t appear on your credit record.

Consideration Period

Secured loans are regulated by the Consumer Credit Act 1974 which means your lender or broker must give you a 7 - day “Cooling off” period between sending out the loan quotation and the credit agreement you will need to sign. Neither the lender or Broker are allowed to contact you during this time, although you may contact them. You will receive a further 7-days to consider the signable loan agreement but this will cease when you sign and return your signed loan agreement. Should you take out any associated payment protection insurance you will be given a 30-day cooling off period

Credit Report

A report showing your credit history, provided by two main companies (Experian and Equifax). Companies providing you with credit will almost always look at your credit report to establish how creditworthy you are. You can obtain your own credit report, for a small fee, directly from Experian or Equifax.

Credit Score

An assessment made by the lender to evaluate the level of risk you pose as a borrower. This can take into account things such as age, how long you’ve been in your job, your marital status and so on- as well as your credit history.

Credit Search

A search carried out by a credit reference agency in order to check your credit record, identify whether you have CCJs, defaults or a history of missing payments or not paying on time. You must give your permission for the search, as in most cases a record of the search will appear on the credit report.

Critical Illness Cover

Insurance, where a lump sum is paid out if you are diagnosed and survive a critical or serious illness as stated by the insurers terms and conditions.

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