Terms and Conditions

As the Agreement has no fixed end date, we may need to make changes to it to take account of changes affecting our business or changes affecting your financial status. If you are unhappy with any changes we make, you can end your Agreement at any time by repaying your Outstanding Balance (including, for the avoidance of any doubt, any interest that has accrued up to this point) in full and choosing to end the Agreement through your Fairlo Account at www.fairlo.co.uk.

13.1 Changes to the credit limit

We will review your Credit Limit on an ongoing basis and may change it from time to time to respond proportionately to:

• A change in the risk of you breaking your Agreement, having regard to how you have been making repayments on your account;
• A change in your financial status; or
• A change in the value of money.

We will normally give you at least 30 days’ notice of a reduction in your Credit Limit. However, we may reduce your Credit Limit without notice (in which case we will tell you about the reduction as soon as possible afterwards) where:

• We reasonably think that the reduction is needed to stop you carrying out further Withdrawals that would increase your Outstanding Balance to an amount that you cannot afford to repay; or
• There is a substantial change for the worse in your financial status or your ability to afford the repayments you must make to us under your Agreement; or
• We need to make the reduction to comply with legal or regulatory requirements.

You may ask us to reduce your Credit Limit at any time. However, we will not reduce your Credit Limit to a level below your Outstanding Balance.

You may be able to apply for a higher Credit Limit at any time on your Fairlo Account. If you do so we may perform a creditworthiness and affordability assessment to confirm your eligibility.

WARNING: A higher Credit Limit may offer greater flexibility, more convenience and a lower cost of credit to meet your financial needs. However, it may also increase the risk of taking on too much debt, which may be costly, or take a long time to pay off. You should carefully consider whether you need a higher limit.

13.2 Changes to interest rates

Your interest rate is linked to the Bank of England Base Rate and Fairlo has the right to reflect any changes to this in your interest rate immediately.

We will give you at least 30 days’ notice of any increase in your interest rates due to other factors referenced below:

• A change beyond our reasonable control in the cost of providing your Account;
• A change in the cost to us of funding the provision of credit under your Agreement;
• A change in legal or regulatory requirements or in any code of practice affecting our business; or
• A change in the cost to us of complying with any legal or regulatory requirements that apply to us (but excluding any additional costs we have to bear as a result of a failure by us to comply with those requirements).

Where we decrease your interest rates, we will notify you before the variation takes effect.

If we give you notice of an increase in your interest rates, you will have 60 days, starting with the date when you receive the notice, in which to tell us that you reject the increase. If you do this, the increase will not apply to you but:

• No further Withdrawals may be carried out;
• You must immediately repay all the money you owe under your Agreement;
• Your Agreement will end and your Account will be closed when all the money you owe has been repaid.

13.3 Changes to the other terms of your agreement

We may from time to time make changes to the other terms and conditions of your Agreement for any one or more of the following reasons:

• to correct an error;
• to make the terms easier for you to understand;
• to enable us to offer you a new service or feature in connection with your account;
• to reflect improvements in the systems we use to run our business (including changes in the capabilities of those systems) or other changes to those systems which are beyond our reasonable control;
• to reflect changes in technology, fraud prevention requirements or payment methods;
• to reflect changes beyond our reasonable control in the costs of providing the services we supply to you;
• to reflect a change which has occurred or we reasonably expect to occur in the near future in legal or regulatory requirements or in the requirements of any trade body that apply to us;
• to reflect the requirements of any code of practice which promotes good practice in the financial services sector.

We will ensure that any change we make to the Terms and Conditions of your Αgreement is a proportionate response to the reason relied on for making the change.

We will give you at least 30 days’ notice of any change we make to the Terms and Conditions of your Agreement, except that, where the change is in your favour, we may make it on giving you not less than 7 days’ notice.