Loans Move Fully Online
05 January 2005
Customers can complete the entire loan process online, without needing to sign a hardcopy of their deal.
Previously, while applying for credit online was possible – customers had to sign a paper copy of their deal before the contract was complete.
Now new rules mean consumers can carry out the whole transaction electronically.
Lenders will still be required to send paper letters when charges for missed payments are imposed, or if the agreement is cancelled.
Consumer minister Gerry Sutcliffe said: “We are undertaking the biggest shake-up of the consumer credit market for 30 years, making it relevant for today’s market.
“Enabling consumers to complete credit agreements from the comfort of their own homes is a key part of this modernisation process. This new rule will improve consumer choice without removing any consumer protection, and save business time and resources.”
Online agreements are subject to a 14-day “cooling off” period, when consumers can cancel the agreement.