Document background
The Voluntary Credit Agreement serves as a fundamental instrument in credit relationships under English and Welsh law. It is used when parties wish to enter into a consensual lending arrangement, whether for personal or business purposes. The agreement must comply with the Consumer Credit Act 1974 and FCA regulations, particularly regarding responsible lending practices and consumer protection. This document typically includes detailed terms about credit limits, interest calculations, repayment schedules, and default provisions. The Voluntary Credit Agreement is distinct from mandatory or court-ordered credit arrangements and represents a mutually agreed financial relationship between the parties.
