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Adequate Explanation

An adequate explanation is defined as information the customer needs to be aware of when entering into a finance Agreement.

Customers are provided with a number of documents before taking out a loan.  One of these documents is an Adequate Explanation.  It is within the document that the loan purpose, terms and conditions and the financial obligations are explained in Plain English to the customer.

Adverse Credit

‘Adverse credit’ is credit slang for people with a less-than-perfect record of repaying their credit commitments. Those with ‘adverse credit’ have something seriously nasty on their credit report, such as a default, or an arrangement to pay, an insolvency, such as a bankruptcy or an IVA, or a mortgage repossession. Adverse credit can also refer to a series of late payments on a credit report.

Adverse credit affects the credit rating and subsequent ability to obtain credit. Such credit account information remains on the credit report for six years from the date of account closure, after which it will automatically be removed from the file.

Adverse credit can result from house repossession orders or repayment arrears on personal loans or mortgages. Most lenders take a person’s credit rating into account prior to offering a loan. Adverse credit may prevent a person from receiving the best credit terms.

Annual percentage rate (APR)

A percentage rate that allows customers to compare the interest rates that are charged on different products.

Used when talking about the interest rates that apply to financial services products.

All providers of financial products that charge interest must give the APR interest rate. APR is always worked out using the same formula, which means that it gives customers a way of comparing interest rates from one product to another.

The APR takes account of different factors such as the interest rate, the period the payments will be made over and certain other fees. 

Appointed Representative

In broad terms, an appointed representative is a business which is not authorised by the FCA, but has a contract with a firm (called ‘the principal’) that allows it to carry out certain activities under the permission of the principal. An Appointed Representative can be authorised with the market instead of by the regulator.

City Energy Network is the Principal for a network of Appointed Representatives who may offer its products to their customers.  City Energy is ultimately responsible for the way in which the Appointed Representative sells those financial products.

Arrangement Fee

Some lenders charge a fee for arranging a loan, usually a one-off payment.

City Energy Network does not have an arrangement fee.


Arrears are defined as money owed by the borrower that is not paid to the firm by the due date. Arrears is another word for 'overdue'. Customers who miss payments on a credit facility, are said to be ‘in arrears’ by the sum they haven’t paid.

This can be expressed by amount of the missing payments, or by the number of months’ payment you have missed, such as ‘£50 in arrears’ or ‘3 months in arrears’.

Depending on the severity of the arrears they can have a varying impact on a person’s credit rating and their subsequent ability to obtain credit.

Payments in serious arrears can often result in default and possibly further court action. At this time, collections actions would have failed, and the matter passed to the lender’s recoveries department. The aim of this department is simply to recover monies due by whatever means are deemed appropriate.

City Energy Network considers customers to be in arrears (overdue) if at least one but no more than two consecutive payments are unpaid or only partially paid by the customer. We will call and write to our customers to discuss and deal with such arrears in the most suitable way.

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