Adequate explanations
Premium Credit Limited:
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 Premium Credit Limited, 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. If you would like further information, please contact us. 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.
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.
Finance is subject to status. Premium Credit will use credit scoring and credit reference agencies to assess your application – this will leave a hard footprint on your credit file and will be visible to other lenders, but not the outcome of the search. They will also carry out identity checks. If your application is unsuccessful, Premium Credit will notify A Choice, and they will contact you to arrange alternative payment. You can find out more information about how Premium Credit uses Personal Data at: www.premiumcredit.com/privacy-notice
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 Premium Credit but will receive a commission from Premium Credit, which is a percentage of your loan amount interest charged.
By choosing to pay your insurance premium in instalments, you are obtaining credit from Premium Credit 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 monthly repayments. If your credit application to Premium Credit is approved, you will receive your information pack within the next 14 days.
You will find your monthly repayment schedule in your information pack. Please read the pack carefully to ensure you understand the terms and conditions and it is right for you.
If you wish to proceed, please make sure you sign the Credit Agreement as soon as possible. This can be done online. A £25 charge will be incurred if Premium Credit are required to write to you to remind you to sign your credit agreement. Alternatively, you can print out, review and sign a copy of the agreement and post it to Premium Credit using the address details in the agreement. The credit agreement will need to be signed and returned to Premium Credit within 27 days of receiving you’re your welcome pack.
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. Premium Credit 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.
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 A Choice. Premium Credit will apply a facility fee to the first payment. The amount will be confirmed to you before you buy the policy.
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 Premium Credit 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 Premium Credit immediately if you are having payment difficulties or think your payment may not be made as planned. Premium Credit 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 Premium Credit or another lender in the future. Your credit agreement may be cancelled which could lead to your insurance policy being cancelled. You will have to pay back any money you owe Premium Credit. 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 Premium Credit as soon as possible. Premium Credit will give you reasonable time to repay what is owed. If you cannot come to an agreement with Premium Credit, you should contact A Choice. If you fail to contact Premium Credit or A Choice and stop repaying the agreement your insurance policy and the agreement with Premium Credit 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 of 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 Premium Credit or
(b) the day you receive a copy of the agreement signed by both of us if you sign the credit agreement before Premium Credit Limited. If you wish to exercise your right to withdraw, you can give notice by calling, emailing or writing to Premium Credit using the details they will send to you.
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 Premium Credit 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 Premium Credit, or where A Choice has paid Premium Credit, 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 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 Premium Credit by: Phone: 0344 736 9836. or online at www.premiumcredit.com/faq/frequently-asked-questions/.