Terms of Business

1. Introduction

The terms “The Finance Hut Ltd”, “us”, “we” or “our” refer to The Finance Hut Ltd, whose registered office is 10 Spring Meadow, Great Shefford, Hungerford, England, RG17 7EN. The Finance Hut Ltd’s company registration number is 13274516.

The terms “you”, “client”, “customer” or “applicant” refer to you, the credit applicant or prospective credit applicant.

The Finance Hut Ltd is an independent vehicle and asset finance brokerage and not a lender. We may introduce you to finance providers depending on your requirements, circumstances, the vehicle or asset and lender criteria.

We are not independent finance advisers and do not provide independent financial advice. We will provide information about finance options and help introduce your proposal to suitable lenders from our panel.

The Finance Hut Ltd may receive payment or another benefit from the finance provider if you decide to enter into an agreement with them. We aim to provide clients with a high standard of service. If our service does not meet your expectations, we will endeavour to find a resolution.

The Finance Hut Ltd is an Appointed Representative of AFS Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority, firm number 625035. The Finance Hut Ltd’s Firm Reference Number is 951514.

2. Our Business Activities

As part of our business, we carry out activities including:

• Introducing customers seeking to obtain credit to finance providers.
• Assisting customers by undertaking preparatory work in relation to finance agreements.
• Referring customers to lenders and finance providers from our panel.
• Helping customers understand the finance products that may be available for motor vehicles.

This document outlines the way in which The Finance Hut Ltd shall carry out these activities.

3. Agreement to These Terms

By agreeing to these Terms of Business, submitting an enquiry or proceeding with a finance application through us, you agree that you:

• Approve the Terms of Business contained within this document.
• Acknowledge that The Finance Hut Ltd shall act as a credit broker when making any referral or introduction to a lender or finance provider.
• Acknowledge that, in making any referral or introduction, no independent advice or personal recommendation is provided by us.
• Accept that these Terms of Business shall apply to all activities, referrals and introductions arranged by us following the date of your enquiry.
• Confirm that, where required by lender criteria, you are a UK resident and hold a UK bank account.

Your agreement to these Terms of Business does not oblige you to enter into any finance agreement that we may source for you.

You may opt out of future marketing communications at any time.

4. Email Communication and Authority to Act

To enable us to provide an efficient application process, we may ask you to provide an email address. You authorise us to send private and confidential information to you by email, including but not limited to credit decisions, finance documents, proposal updates and lender requirements.

If your email address changes, you must notify us so that we can update our records.

If you wish to authorise another party to act on your behalf in relation to dealings with The Finance Hut Ltd, including disclosure of finance proposal updates, credit decisions or previous transactional information, you must provide the name and position of that individual. If those details change, you must notify us so that we can update our records.

5. Complaints Policy

If you are not completely satisfied with our service, we would like to hear about it. This gives us the opportunity to investigate, respond and, where appropriate, put matters right.

To help us deal with your complaint efficiently, please provide:

• Your name and address.
• Your account number or proposal reference, where applicable.
• Details of your complaint, including relevant dates, documents and references.

What you can expect from us

Our aim is to ensure that your complaint is handled fairly and that you are provided with a clear response. If we cannot resolve your complaint immediately, we will send you a prompt acknowledgement confirming receipt of your complaint.

We will carry out an investigation addressing the points you raise and will provide our written response as soon as reasonably possible. Where a complaint falls within the scope of the Financial Ombudsman Service, we aim to issue our final response within eight weeks.

If we need more time to investigate your complaint, we will keep you updated on progress and explain the reasons for any delay.

Financial Ombudsman Service

If you are not satisfied with our final response and your complaint is eligible, you may be able to refer your complaint to the Financial Ombudsman Service. This is a free, independent service for resolving disputes between customers and financial services firms.

You will usually need to contact the Financial Ombudsman Service within six months of the date of our final response letter.

As The Finance Hut Ltd is an Appointed Representative of AFS Compliance Ltd, complaints are subject to AFS Compliance oversight and reporting requirements. If we are unable to resolve your complaint, or where appropriate, you may contact AFS directly through the AFS Complaints Procedure.

6. Proposal Process

As a credit intermediary, The Finance Hut Ltd has due regard for the FCA’s Principles for Businesses, applicable regulations and guidance, and strives to reflect these through its operational practices.

The Finance Hut Ltd is focused on providing customers with clear and transparent communication throughout the proposal process.

Where possible, we aim to avoid unnecessary or duplicated contact which may cause confusion. We will seek to keep communication clear, discreet and appropriate to the proposal.

7. Acting as a Credit Broker

Our role is to introduce your finance proposal to a panel of lenders or finance providers. We will consider the circumstances of the transaction, including but not limited to:

• The finance product requested.
• The vehicle, its age, mileage, value, specification and condition.
• The amount of credit required.
• The deposit, term and ownership plans.
• Credit profile and lender criteria.
• Speed of decision where this is relevant to the transaction.
• Product availability and suitability.
• Security provided.

Where we act as a credit broker, we may receive a commission payment for effecting an introduction. If the proposal has been introduced to us by way of a referral, we may choose to pay some of our commission to the referring party.

We are committed to placing applications with a lender or finance provider that we consider appropriate for the transaction, taking into account the factors listed above.

8. Your Proposal

It is important that you provide accurate information on your application and disclose all relevant information that would reasonably be considered to have bearing on any credit decision. This may include, but is not limited to:

• Your income, employment, residential status and financial commitments where requested.
• Any relevant credit history information.
• Any legal proceedings, insolvency events or arrangements with creditors.
• Any event that may affect your ability to make repayments under a finance agreement.
• Accurate information about the vehicle, supplier, deposit, part exchange and intended use.

When sourcing available credit, we do not seek to create unnecessary credit searches. Only one lender will usually be approached at any one time. If that lender declines the prospective transaction, we may approach an alternative lender that we consider appropriate.

In some cases, it may be necessary to consider a different product, term, deposit or vehicle structure before a proposal can proceed.

9. Credit Decisions

If a finance application is accepted, we will notify you of the acceptance and any accompanying terms and conditions. Acceptances are usually valid for a limited period. A further application may need to be submitted if this period lapses.

The Finance Hut Ltd and its lender panel reserve the right to withdraw an acceptance at any time if information becomes available that affects your financial status, the vehicle, the supplier, lender requirements or the suitability of the transaction.

Documents may be executed manually or electronically, depending on lender requirements.

10. Declines

We will endeavour to keep you updated with regard to the progress of your application for finance. You may request an update at any time during the process.

Where we decline a proposal or receive notice of a decline from a lender, we will contact you and explain the position where we are able to do so.

Multiple declines

In the event that we receive three declines from finance providers for the same credit application, your The Finance Hut Ltd representative will contact you to:

• Discuss your options.
• Obtain your consent before approaching further lenders where appropriate.
• Explain whether further searches may be required.

This approach helps ensure that the number of credit searches made against customers following a credit decline is limited.

11. Product Suitability

It is important that any finance product arranged is suitable for your requirements and circumstances. We will endeavour to understand your needs and assist you in looking for an appropriate product, but we do not provide independent financial advice.

Finance products may be restricted by the vehicle, customer profile, affordability, credit status, lender appetite, intended use, product availability or regulatory position.

If you require advice on tax, accounting, legal or financial planning matters, you should seek advice from an accountant, solicitor, financial adviser or other professional adviser.

Finance products may include documentation fees, option to purchase fees or other lender charges. These will be determined by the lender and disclosed within the relevant finance documentation.

12. Hire Purchase

Hire Purchase, often referred to as HP, is a finance agreement linked to a specific vehicle. It allows you to use the vehicle while making regular repayments over an agreed term.

The finance company usually purchases the vehicle and hires it to you under the agreement. Subject to the terms of the agreement, ownership will pass to you once all repayments have been made and any option to purchase fee has been paid.

The process

• You select the vehicle you wish to finance.
• The finance company purchases the vehicle from the supplier.
• You make the agreed regular repayments for the term of the agreement.
• At the end of the agreement, ownership can pass to you once the required final fee is paid.

Potential benefits

• A structured route to ownership.
• Fixed monthly repayments over an agreed term.
• Funding secured against the vehicle.
• Clear end-of-agreement ownership route, subject to the terms of the agreement.

13. Personal Contract Purchase

Personal Contract Purchase, often referred to as PCP, is a finance agreement that may provide lower monthly repayments than some equivalent Hire Purchase structures because part of the vehicle’s value is deferred to an optional final payment.

PCP agreements usually include an agreed mileage allowance, vehicle condition requirements and an optional final payment if you wish to keep the vehicle at the end of the agreement.

At the end of the agreement

Depending on the agreement and lender terms, you may have options which can include:

• Paying the optional final payment to keep the vehicle.
• Returning the vehicle, subject to mileage and condition requirements.
• Part exchanging the vehicle, subject to valuation and settlement position.

Excess mileage charges, condition charges or other fees may apply depending on the terms of the agreement.

14. Lease Purchase

Lease Purchase is a vehicle finance structure that may include regular repayments during the term and a larger final balloon payment at the end of the agreement.

Lease Purchase may suit customers who intend to own the vehicle at the end of the agreement and are comfortable with a final balloon payment, subject to lender criteria and product availability.

The process

• You select the vehicle you wish to finance.
• The finance company purchases the vehicle from the supplier.
• You make agreed repayments over the term.
• A final balloon payment is due at the end of the agreement.

The availability and structure of Lease Purchase will depend on the vehicle, customer profile, intended use and lender criteria.

15. Refinance

Refinance may allow an existing finance agreement on a qualifying vehicle to be restructured, subject to lender criteria, valuation, settlement position and the terms of the current agreement.

A refinance proposal may involve settling an existing agreement and replacing it with a new agreement. This may change your term, monthly payment, total amount payable and overall finance position.

Refinance is not suitable in every circumstance. We will explain the information available to us, but you should ensure you understand any costs, settlement figures, fees and changes before entering into a new agreement.

16. Identification and Verification

The Finance Hut Ltd is committed to maintaining appropriate standards of compliance, including the need to identify and verify customers, whether existing or prospective.

As well as regulatory responsibilities, we take the view that customers and their data should be treated in a proper and professional manner.

At the point of receiving an application for credit or personal data, the applicant is deemed to be a customer of The Finance Hut Ltd and we may commence the verification process.

We may discuss generic matters with existing or prospective customers at any time. However, we recognise the need to verify identity before engaging in customer-specific discussions, whether from memory or by accessing customer records.

17. Standard Verification

Before entering into any discussion with an individual relating to customer-specific information, including but not limited to proposal status, financial circumstances, existing or previous transactions, we must ensure that the individual has been identified.

Identity may be verified using information such as:

• Date of birth held on file.
• Deal or proposal reference number.
• Mobile number.
• Banking details.
• Last lender or finance provider.
• Rental, repayment amount or total credit.
• Vehicle details.
• Finance product type or purpose.

Once an individual has been identified and verified, we must also ensure that this individual is authorised to discuss the matter on behalf of the customer.

18. Reduced Verification

Due to the nature of our business, our representatives may build established relationships with customers and individuals representing customers, particularly where finance has been arranged previously.

Where a representative can confirm relevant relationship and customer criteria, a reduced verification process may be followed for that communication. This may include confirming the individual and customer name without requiring the full standard verification process.

Reduced verification will only be used where we consider it appropriate and where sufficient information is held to support the interaction.

19. Customer Responsibilities

You are responsible for ensuring that all information you provide is accurate, complete and not misleading. You should read all finance documents carefully before signing and ask questions if anything is unclear.

You should ensure that the vehicle, finance product, repayment profile, term and any final payment are appropriate for your circumstances before entering into an agreement.

You should also ensure that any insurance, maintenance, warranty, servicing, taxation, charging, storage or other vehicle-related obligations are understood before proceeding.

20. Legal Entity and Regulatory Information