Pre-contractual Explanations

Insurance premium finance pre-contractual explanations

It is important you read this entire page carefully. You may wish to take advice from an independent financial adviser, not-for-profit organisation or charity, such as Citizens Advice.

Your finance provider

Your deposit is paid to us. We are a credit broker and we use Premium Credit Limited (PCL) exclusively to provide premium finance. We receive a commission for introducing you to PCL. Your data will be shared with PCL who will assess your creditworthiness using a range of tools to carry out anti-money laundering checks and credit assessments. Your application will include a search of your records at a credit reference agency. This search leaves a footprint that other lenders will be able to see regardless of whether or not the application for credit goes ahead. However, other lenders will not be able to see the outcome of the search.

Insolvency

Premium finance is not available if you have been made bankrupt within the last 12 months, or you are currently in an Individual Voluntary Arrangement (IVA).

The credit agreement

You will receive a credit agreement from PCL soon after your insurance has started. You should read the pre-contract credit information provided to help you decide if their product is suitable for your needs and financial situation. The credit agreement will need to be signed and returned to PCL within 27 days of receiving your PCL welcome letter. It is also possible to sign your credit agreement online at www.mypremiumcredit.com. There is a £25 charge for failing to sign and return your credit agreement. The credit agreement can only be used to finance insurance premiums and any other amounts payable for changes to your insurance that we arrange. You may use the agreement to renew your insurance policies. PCL will take security over any monies payable to you under any insurance policies that are financed by the credit agreement. This means they can use any money you would normally receive under those insurance policies or under the Financial Services Compensation Scheme (FSCS) to repay all or part of the outstanding balance under the credit agreement.

Your responsibility

The Direct Debit payments are collected by PCL and will show as Premium Credit on your bank statements. The first Direct Debit instalment is due one month from the day the insurance starts unless otherwise specified. You should make sure there is sufficient money in your account on the correct day each month. This is not month-by-month insurance. The Direct Debit payment will not necessarily equal the cost of insurance for one month. The monthly payment will remain constant during the agreement unless additional transactions are applied. We are acting on your instructions when directing PCL to add further transactions to your account. PCL can change the transaction fee and any other fees and charges under the credit agreement at any time by giving you 30 days' notice in writing. If you cancel your Direct Debit instruction or fail to make a payment you will be in default of your agreement with PCL. PCL will try to collect the missed payment again with a £25.00 default charge. Missed payments can also be made by credit or debit card online or over the phone to PCL. If the default is not resolved then PCL will cancel the credit agreement. The entire remaining balance will be payable to us. The insurance policies financed by the credit agreement will be cancelled if you do not arrange alternative payment promptly.

Cooling off period

You have the right to withdraw from the credit agreement within 14 days. If you do so, you will be responsible for making alternative arrangements to pay us for the insurance otherwise it will be cancelled. To exercise this right, you must notify PCL by calling 0344 736 9836 or by writing to Premium Credit Limited, Ermyn House, Ermyn Way, Leatherhead, Surrey, KT22 8UX. You must pay the entire remaining balance no later than 30 days after withdrawing from the credit agreement to avoid paying interest on the balance.

Insurance policy cancellation

If you would like to cancel your insurance, you should call us straight away. Simply cancelling or defaulting on your Direct Debit does not immediately cancel your insurance. If you contact us immediately, we can cancel your insurance policy sooner, which will result in a smaller charge from the insurance company. We will determine what you will owe as a final payment by taking into account what you have paid so far along with the charges made for the time you have been covered. If there have been any claims against your insurance, there will be no cancellation refund to use, and the entire outstanding balance will be payable. The terms do not affect your right to pay the remaining balance in full at any stage. Please contact us in order to clear the balance on your loan and save some of the interest paid on the total amount financed.