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Draft Adequate Explanation

An example of our loan agreement.

Adequate Explanation


Please consider this information carefully before continuing.

humm will also provide you with some pre-contract information about your loan which you should read carefully.

The loan is to finance the purchase of goods or services from the Retailer. It cannot be used for any other purpose.

The loan will be used to pay the Retailer, but we will not do this until the following steps are completed:

  • we have issued a copy of the Agreement to you;
  • you have agreed to be bound by the Agreement by completing our on-line journey and acceptance procedure;
  • you have provided us with confirmation of your Payment Card which we have validated; and
  • the Upfront Payment has been paid in full.

You will need to pay an Application Fee of £ [ ] (“Application Fee”) which is your Upfront Payment.

You will also pay a monthly Account Fee of £ [ ] (“Account Fee”) which is included in your monthly Instalments.

The Instalments are set out below and the Total Amount Payable can be found in the ‘Important Information’ section at the front of your Agreement.

Monthly Instalment

Total Monthly Instalment including Account fee

Total Term

[ ] months

0% p.a fixed (Interest Free Period)

[ ] months

£ [ ]

£ [ ]

[ ] % p.a. variable (Standard Variable Rate*)

*This is the Standard Variable Rate as at the Start Date. It may vary thereafter in accordance with Clauses 12 and 15.

[ ] months

£ [ ]

£ [ ]

Continuous Payment Authority (“CPA”)

By entering into the Agreement, you are consenting to the use of continuous payment authority as the means of repaying the Loan.  This means that we can collect the Instalments automatically on the Instalment Payment Date, as set out in the Agreement, from the Debit or Credit Card you used to make your Upfront Payment. You can change the Instalment Payment Date in accordance with the terms of the Agreement.

This is the only repayment option available, but you can change the Debit Card or Credit Card and make manual card payments at any time through our app.

If you wish to cancel the CPA, you may do so at any time by contacting your bank directly, or by contacting us at [email protected]. If you do cancel, you remain responsible for paying the outstanding balance of the Loan and any charges in full.


On each Instalment Payment Date, we will attempt to collect the amount due. If this fails we will attempt to collect this amount again the next day, and if this too fails, a late fee of £7 will be applied.  This will mean that the total amount you owe will increase and may also mean that it will take longer for you to complete your repayments.

We may make up to two (2) further attempts to collect the relevant Instalment, plus the late fee unless we have agreed an alternative repayment plan with you.

If we are not able to collect your Instalment and you remain in arrears at your next Instalment Payment Date we will repeat the process set out above but will only seek to collect the current Instalment amount on the due date.

We will also continue to attempt to contact you to discuss your arrears.

You can defer your Instalment Payment Date provided is it not extended more than three days after the agreed Instalment Payment Date.

Missing payments can also affect your credit rating, which may limit your ability to access credit in the future or make obtaining it more expensive and have severe consequences which include (a) registering of a default against you at credit reference agencies and (b) possible legal proceedings which may include incurring legal costs.

Right to Withdraw

You have the right to withdraw from the Agreement, without giving any reason, for a period of 14 days beginning on the later of (i) the day after the Agreement Date and (ii) the day after the date on which you receive a copy of the Agreement.

You may exercise your right by contacting us at [email protected] and you will then have 30 calendar days to repay any outstanding balance. If you withdraw from the Agreement within the 14-day period it will be treated as if it was never entered into.

If you have any further questions or would like any further information please visit