Adequate explanations

It is important that you read and understand this information and consider what is involved in entering into the agreement. If you have any questions, you should contact A Choice on 0330 127 4500.

Premium Choice Ltd, trading as A Choice, act as a credit broker, not a lender. We work with Close Brothers Limited, trading as Close Brothers Premium Finance (CBPF) as part of a panel of lenders, to arrange finance for our customers. We’ll be paid a commission for introducing you to them and for managing your finance. We’ll also receive commission if you finance mid-term adjustments, annual renewal or additional insurance policies. Commission affects the amount you pay as it’s included in the total cost of your finance. We set the interest rate for your finance.

These arrangements may impact our ability to act in an impartial manner when arranging your finance. Where possible, we’ve explained that there may be alternative ways to pay for your insurance premium and you’ve opted to proceed with finance. We’re not providing you with financial advice.

If you wish to go ahead, Close Brothers will contact you to confirm the commission amount in writing and to obtain your consent to us receiving that commission before they can progress your application. Without your consent, Close Brothers cannot finance your insurance, and you’ll need to find another way to pay.

Your offer of credit is conditional until Close Brothers has assessed your application. They may use credit scoring, information from one or more credit reference agencies, and automated decision-making systems in making this assessment. Where a credit search is made this will leave a hard footprint on your credit file. They’ll also carry out fraud and anti-money laundering checks. You can find out more information about how Close Brothers uses Personal Data at: www.closebrotherspf.com/privacy.  

Your finance arrangement explained

Your premium finance product is available to applicants over 17 years of age and resident in the UK. The product is only appropriate for the funding of your insurance products and associated costs you may have with A Choice, it may not be used for any other purpose. If you are considering paying for the insurance policy premium upfront in one payment, the finance arrangement may not be suitable for you. If you would prefer to pay using a different method at any point, please let A Choice know. A Choice will not charge you a fee for introducing you to CBPF but will receive a commission from CBPF, which is a percentage of your loan amount interest charged.

By choosing to pay your insurance premium in instalments, you are obtaining credit from CBPF in the form of a Running Account Credit Agreement, which is regulated by the Consumer Credit Act 1974. By entering into the agreement, you will be agreeing to repay the amount of credit by way of monthly repayments. CBPF will provide your Pre-Contract information by way of a Welcome Pack.

This information will help you decide if the finance is right for you. The documents within the pack will clearly explain the key details about your agreement including:

• The pre-contract credit agreement.
• The cost of the credit agreement.
• The minimum monthly payments.
• The dates payments are due.
• The terms and conditions of the credit agreement.

You will need to sign a copy of the Credit Agreement and return it by the date requested. If you don’t sign the agreement, you will need to find another way to pay for the insurance policy.

Changes to your policy

If you make a mid-term change to your policy, A Choice will always advise you of the change in insurance premium and any associated insurance charges. Most changes to your insurance premium can also be accommodated within the credit agreement if you prefer. CBPF will send you a revised payment schedule up to the renewal of your policy.

If you would prefer to pay any additional premium as a one-off payment, please let us know at the time of making the change. If the change in premium is small this could help you avoid an additional transaction charge for the credit.

Online account servicing

CBPF will give you access to your account information online. You can log in to your online account at www.closebrothersbanking.com using the details from your registration email. This facility will allow you to view your payment schedule and copies of the documentation CBPF has issued and provide a means to update your address and bank details.

It is important that you read all the information set out below so you can decide if the agreement is appropriate to your needs and financial situation.

What can this agreement be used for?

The credit agreement is designed for the repayment of insurance premiums and isn’t suitable for any other use.

If you are a company/partnership consisting of four or more persons, you will not benefit from protections under the Consumer Credit Act 1974 or the Consumer Credit Sourcebook of the Financial Conduct Authority.

What will it cost me?

You will have to pay back the money you borrow under the agreement and pay interest you may have been charged by your broker.

Your minimum monthly payments are calculated by adding interest to the amount you’ve borrowed and dividing that total by the number of months over which the money is to be repaid.

These will be provided to you and confirmed in your Welcome Pack sent by Close Brothers Premium Finance upon completion of your application.

What happens if I do not pay my monthly payment on time?

You should consider your ability to repay the agreement. For example, you should calculate if you have sufficient income considering your existing routine and regular monthly financial commitments. You must ensure you keep your repayments up to date. Please contact CBPF immediately if you are having payment difficulties or think your payment may not be made as planned. CBPF are best placed to discuss any suitable options with you, which could avoid additional charges or more serious consequences.

If you fail to make a minimum monthly payment, you will be charged a default fee of £25.00, which will be collected at the same time as the missed payment. You may be charged late payment interest until the payment is made, meaning the cost of your borrowing may increase. Your credit rating may be affected, and you may find it harder to borrow from Close Brothers Premium Finance or another lender in the future. Your credit agreement may be cancelled which could result in you being charged a cancellation fee and could lead to your insurance policy being cancelled. You will have to pay back any money you owe Close Brothers Premium Finance. All charges are set out in your credit agreement in the Interest and Charges section.

What happens if I stop repaying the agreement?

If you experience difficulties repaying the agreement, you should contact CBPF as soon as possible. CBPF will give you reasonable time to repay what is owed. If you cannot come to an agreement with CBPF you should contact A Choice. If you fail to contact CBPF or A Choice and stop repaying the agreement your insurance policy and the agreement with CBPF will be terminated.

If your insurance policy is cancelled, your insurance company may issue a refund of premium paid where appropriate. In any event, if any balance is unpaid, legal proceedings may be commenced against you, incurring additional costs and charges, to recover any amounts still owed by obtaining a County Court Judgment (decree in Scotland) against you from the court.

Do I have any right to withdrawal? If so, what are the terms?

You have the right under the Consumer Credit Act 1974 to withdraw from your credit agreement without giving any reason before the end of 14 days beginning on the day after (a) the day you sign a credit agreement that has already been signed by Close Brothers Premium Finance or (b) the day you receive a copy of the agreement signed by both of us if you sign the credit agreement before Close Brothers Premium Finance.

If you wish to exercise your right to withdraw, you must give Close Brothers Premium Finance notice by one of the following methods:

(i) by telephone on 0333 321 8566;

(ii) by e-mail to [email protected] ; or

(iii) by post or delivery to Close Brothers Premium Finance, 10 Crown Place, London, EC2A 4FT.

If you cancel the credit agreement within 14 days, as explained above, you won’t pay any interest or charges related to the credit agreement. You must pay, within 30 days, any remaining balance owed, which starts the day after you’ve notified Close Brothers to cancel. You must contact A Choice to discuss other ways to pay for your insurance.

Any refund of premium arising from the cancellation of your insurance policy will be used to repay any outstanding balance you owe Close Brothers Premium Finance, or where A Choice has paid Close Brothers Premium Finance, any outstanding balance you owe to A Choice. A Choice may also use any money you may receive from the Financial Services Compensation Scheme (in the event of an insurer being unable to meet its financial responsibilities) to repay all or part of any outstanding balance under the credit agreement.

What do I need to read before entering into the credit agreement?

It is important that you read all the information presented in the online journey, in particular, the Pre-contract credit information and the credit agreement, and take time to consider it carefully. This information will help you make an informed decision about whether this is the right product for you. If you have any questions about the agreement, you should contact A Choice on 0330 127 4500 or Close Brothers Premium Finance on: 0333 321 8566.