Early Repayment Charge

A lender must provide proper notice and a meaningful opportunity to remedy arrears before defaulting an account, and early default registration breaches statutory consumer credit protections.

A mortgage lender must act reasonably when managing a customer's mortgage and should not arbitrarily refuse to engage with reasonable requests for rate renewal or term extension.

A lender is entitled to decline a mortgage application based on its own risk appetite and lending criteria, but must respond to customer proposals in a timely manner.

A lender must correctly administer a loan account in accordance with the terms agreed and accurately communicate the loan's status to the consumer.

A bank must communicate clearly to a customer about the actual terms it is willing to lend on, rather than providing misleading reassurances about loan approval.

A lender must carry out proportionate affordability checks before lending, but checks may be less thorough in early lending relationships if the borrower's income is verified and appears sustainable relative to the proposed repayments.

Early repayment of a fixed-term loan reduces the outstanding balance and interest accrual, but cannot be used as a credit to offset future missed or late payments.

A lender's porting clause is limited to properties being purchased, not properties already owned by the borrower, and this restriction must be clearly stated in the mortgage terms.

Early settlement figures under the Consumer Credit Early Settlement Regulations 2004 must allow lenders to retain up to 58 days interest, which is a statutory requirement rather than a discretionary fee.

A lender must carry out proportionate affordability checks before lending, with the level of scrutiny adjusted based on risk factors such as low income, high loan amount, or impaired credit history.

Credit card payment allocation operates on a statement cycle basis, not in real-time, and payments are applied to previously billed balances before unbilled transactions.

A lender must carry out proportionate affordability checks before approving credit, with the level of checks calibrated to the borrower's circumstances and the size/term of the loan.

A lender must carry out proportionate affordability checks before lending, but checks need not be exhaustive if the borrower's income after committed expenses and existing credit commitments covers the proposed repayments.

A lender must carry out proportionate affordability checks before lending, but is not required to obtain bank statements for unsecured personal loans.

A lender must carry out proportionate affordability checks before providing credit, with the level of checking depending on factors such as the borrower's income level, loan amount, and stage of the lending relationship.