Round 1 – Consumer Credit Act – Which offers you protection?
It’s written on the “tin” where it says “Regulated”. Regulation means that the Consumer Credit Act is looking out for you and offering consumer protection under law. Unregulated does not offer the same.
Round 2 – Financial Conduct Authority – which allows them to pull punches?
Again, being Regulated means that the Financial Conduct Authority (FCA) is there to protect you and help fight your corner in the event of any issues. Unregulated, you are fighting alone.
Round 3 – Over-payments – Which offers flexibility?
Regulated offers total flexibility in managing your loan facility. The ability to overpay and no early settlement penalties are part of the agreement.
Round 4 – Early Settlement – Which holds hidden costs and penalties?
Unregulated can hold high documentation fees and most certainly early settlement penalties and there is not a lot you can do about it.
Round 5 – Fees – Which dictates that the lender has to declare the fees?
Choosing a Regulated agreement means the lender has to operate a full discloser policy under the FCA consumer rules.
Round 6 – Who are you up against? – What clarity is there around the lender?
Regulated is fully disclosed with all fees, interest charges and the interest rate being confirmed on the document. Unregulated, not so!
Round 7 – Complaints? – Am I protected when things do not seem fair?
Regulated means you are covered under the Consumer Credit Act 1974 with recourse on any advisor or lender. Unregulated means you have removed yourself from consumer protection by declaring certain aspects when setting up the agreement and may not have the appropriate FCA protection.
Round 8 – Legal Battles? – Where do I stand and who protects me?
Regulated dictates that you are advised correctly and protected accordingly. Unregulated means you have signed the document and taken full responsibility for that signature.
Round 9 – Confused about the difference? – Lack of professional advice
Anything in the commercial world that is Regulated means there is a governing body to protect the consumer about being advised correctly and with clarity. By removing yourself from this protection you have made a decision that could financially affect your agreement in the future. Please ensure that when you are looking for quotations you are given a full description of both facilities that you are legally entitled to. Any business that fails to do so is breaking the law and is acting against their license.
Knockout. If you have any further queries regarding the differences of regulated and unregulated agreements, give us a call and we can advise what is best for you.