Borrower adequate explanation
Silverline Autos Limited t/a Angel Loans
IMPORTANT INFORMATION ABOUT GUARANTOR LOAN
Before we can process your loan application we must provide you with important information to explain the details of your proposed guarantor loan.
This document should be read carefully along with the other information we provide to you, including the Pre-Contract Consumer Credit Information form or PCCI, the draft loan agreement and the guarantee and indemnity agreement (the Guarantee and Indemnity) which we require the person you have nominated to guarantee your obligations under the loan (your Guarantor) to sign.
These documents should be considered in detail to help you to decide if our loan is suitable for you. You must not sign the loan agreement until you are satisfied that you fully understand the terms of the loan and wish to proceed to borrow from us.
If you have any questions, please contact us by:
writing to us at Angel Loans, 333 Edgware Road, London NW9 6TD
calling us on [insert number]; or
emailing us at [email address].
You can also access our website at [address], which includes information about the product and a number of frequently asked questions.
Making sure this loan is suitable for you
This is a medium term, cash loan which is secured by your Guarantor. This is an expensive form of credit and you should consider whether you could access cheaper credit elsewhere before you borrow from us.
The loan will not be suitable for you if:
you do not have anyone who is willing to act as your Guarantor;
you do not wish to your Guarantor to receive information and copies of communications about your loan, including whether you miss repayments; or
you are not willing to grant us access to your bank statements via open banking, which we use to assess if you can afford the loan.
It may not be suitable for you if you intend to use the loan to pay off your existing loans with other lenders and you will end up paying more in total by doing so; for example, if the interest rates on those loans are lower than on this loan agreement. You should check any consequences for you of settling other loans early.
The role of the Guarantor
It is a condition of our loan agreement that you nominate someone who is willing to be your Guarantor. This is usually a friend or family member. We can’t lend to you unless you have a Guarantor. You must have the Guarantor's permission to nominate them and to provide us with their name and contact details before you apply for the loan.
Your Guarantor is required to provide us with personal security by signing the Guarantee and Indemnity. Under the Guarantee and Indemnity, they promise to meet your obligations under the loan and repay what you owe us (including any default charges) if you fail to do so. This means that if you miss any payments when they fall due or otherwise fail to comply with the loan agreement terms, the Guarantor will be legally responsible for fulfilling your obligations (including making the loan repayments).
Becoming a Guarantor is therefore a major financial responsibility and should not be taken on lightly. Your Guarantor will receive a separate explanation document in a similar format to this, outlining their responsibilities as Guarantor. They will also receive a copy of all the information we provide to you and the completed loan agreement that you enter with us, as well as copies of all statements, notices and other communications we send you about the loan. This means that your Guarantor will be informed if you miss any payments.
Your loan amount and costs
You have requested a loan for £[amount]. You must repay this loan over [xx] monthly instalments of £[instalment]. The interest rate is [annual interest rate] % per annum and the APR is [insert APR]%. If you make each of your repayments on time you will pay £[total Interest] in interest, and the total amount that you will have to repay under the loan agreement will be £[total amount payable].
Once the loan agreement has been signed by you and by us and your Guarantor has signed the Guarantee and Indemnity, we will transfer the loan amount to your nominated bank account. You should receive it within [2] working days.
We will conduct a detailed assessment to check that you can afford to repay the loan. This is based on information we obtain from you as part of the application process, on credit reference checks and on a review of your bank account information we obtain with your permission via open banking. We will only lend to you if we are satisfied that you can afford to make the repayments. Missing payments can have serious consequences as set out below. Please consider any expected changes in your income and expenditure before you borrow. If you do not think you can afford the monthly payments you have to make under the loan without relying on your Guarantor to help, you should not enter the loan agreement.
Repayment methods
When you take out the loan, if your payments are to be made by debit card, you must provide us with a continuous payment authority (CPA) so that we can take payments due from your bank account using your nominated debit card.
We may also accept payments made by standing order. Please get in touch with us if you prefer to pay this way.
Your Guarantor will also be asked to provide us with their debit card details and to provide us with a CPA as part of their Guarantee and Indemnity so we can take payment from them if you fail to pay.
You or your Guarantor may cancel the CPA you or they have provided to us by contacting the bank where the debit card is held or by contacting us. However, cancellation will not change the underlying obligations of you or your Guarantor to repay the outstanding debt and arrangements should be made for an alternative method of repayment on the agreed payment dates to avoid going into default and incurring unnecessary charges and interest.
Payment attempts & use of CPA
We will make one attempt to collect the amount of repayment due from your bank account, including interest and any applicable charges, using CPA for the amounts and on the agreed payment dates set out in your loan agreement. Your first payment is due one month after the loan agreement is made. It may be possible to agree an alternative payment date; please contact us if you wish to discuss. We will usually need 30 days' notice to agree a change and if this results in a payment date after the original due date you may have to pay more interest. Details are set out in your loan agreement.
If the attempt to collect repayment by CPA on the scheduled payment date is unsuccessful, we will try to contact you by telephone, email and/or SMS message to discuss the reasons for the missed payment. If at any point you inform us that you are unable to make the repayment due to a change in your financial circumstances, or where making the repayment would cause you financial hardship, we will try to agree a repayment plan and treat you with forbearance.
If we cannot contact you to agree alternative repayment arrangements, we may make one further attempt to take payment from your Debit Card using the CPA within [one] week of the repayment date. We will not try to take part-payment by CPA unless you instruct us to do so.
If the second attempt to collect the repayment from you is unsuccessful, we will contact your Guarantor. We will explain to them that you have missed your repayment, tell them of the arrears amount and provide them with at least 5 working days' notice of our intention to attempt to collect repayment from their bank account via CPA.
If our attempt to collect repayment from the Guarantor using the CPA is unsuccessful and we are unable to agree alternative repayment arrangements with you and/or your Guarantor then, as a last resort and subject to giving the Guarantor 5 working days' notice of any request to take payment from their account by CPA, we may make one further attempt each week to collect the repayment from you and one attempt each week to collect it from your Guarantor. We will only use the CPA in a reasonable manner which is proportionate to your and your Guarantor’s individual circumstances.
Throughout the period that the loan remains in arrears we will make reasonable attempts to contact you and the Guarantor to discuss why repayment remains outstanding. Where you and/or the Guarantor are experiencing financial difficulty we will exercise forbearance.
If your circumstances change and you cannot meet the full repayment on the scheduled repayment dates, or you are experiencing financial difficulties, please get in touch with us as soon as possible using the contact details provided in this document, so that we can discuss the options available to you. If you believe that, as a result of our attempts to collect repayment, you have been unable to meet priority debts, such as rent, mortgage or utility bills, you should contact us as soon as possible using the contact details provided above. We may be able to refund the repayments taken.
The consequences of missing one or more payments
If you miss one or more payments we may charge you default charges. This will mean that the total cost of your debt will grow, and you will end up paying more overall. These charges are:
£17.50 for each missed payment not made 3 days after the due date.
Any expenses and costs that we incur in tracing you or your Guarantor if either of you change your address or contact details without telling us.
Any reasonable expenses and costs we, or our agents, incur in taking steps to enforce our rights under the loan agreement.
Default interest, charged at the contractual interest rate on the amount of credit outstanding, including any missed payments.
We will report missed payments by you or by your Guarantor to credit reference agencies. This information will appear on your credit record and may be accessed by organisations making decisions in respect of other products or services you are interested in. Missing payments can make it more difficult and/or more expensive for either of you to obtain credit in the future.
It can also result in legal proceedings being brought against you and/or your Guarantor. If a court judgment is obtained we may seek an attachment of earnings order, a property charging order or warrant of execution. If we obtain an order over your property your home may be repossessed.
When we may enforce the agreement against your Guarantor
Where you breach the terms of the loan agreement, for example by missing one more payments, we may contact your Guarantor and request them to make the payments instead.
If the agreement remains in default and if we cannot agree a solution with you, we may serve a Default Notice on you and provide a copy to your Guarantor. This notice gives you 14 days to put matters right by bringing your payments up to date.
If the breach is not remedied within 14 days we may:
demand payment from the Guarantor of any overdue payments and associated charges and or costs due under the loan and collect such payment(s) from the Guarantor using their CPA; or
terminate the loan agreement and demand payment from you or the Guarantor of the full outstanding balance.
Before demanding (as opposed to requesting) any payment from the Guarantor we must serve a Default Notice.
If your Guarantor fails to comply with their obligations under the Guarantee and Indemnity this may increase the overall costs (due to the addition of late payment interest and charges).
Your right to withdraw from the loan agreement
Once the loan agreement is made, you have the right to withdraw. You don’t need to give a reason for this. The period in which you can withdraw starts on the day after the day on which you receive a signed copy of the loan agreement or we tell you that it has been signed in an identical form to the copy you already have. It ends 14 days later.
To exercise your right to withdraw, contact us by telephone, email or post using the details given above. You must repay the loan to us within 30 days of telling us of your withdrawal. You must also pay interest from the date the loan was transferred to the date you repay us. The rate of interest is set out in the loan agreement along with the amount of interest payable each day. You can repay over the phone by debit card, or by electronic funds transfer.
Commission
We will pay a commission to the credit broker who introduced you to us in the sum of £[ ]
Other Sources of help and advice
We are always available to discuss any difficulties should they arise, but there are also a number of independent free debt-counselling organisations who can help you. These include:
Citizens Advice – www.citizensadvice.org.uk (telephone 0800 144 8848 in England, 0800 702 2020 in Wales
MoneyHelper – www.moneyhelper.org.uk (telephone 0800 138 7777 in England, 0800 138 0555 in Wales)
National Debtline – www.nationaldebtline.org (telephone 0808 808 4000)
Step Change – www.stepchange.org (telephone 0800 138 1111)
