Monthly repayments for insurance

Zapp_from_Planet_Zogg

I would greatly appreciate any advice on the following....

I have arranged motor insurance through a broker who has, in turn, offered a monthly payment scheme for the premium. This scheme is operated by a regulated lender who is also a member of the FLA.

I have received a copy of the Credit Agreement to sign and return. However, I wished to modify the repayment period (i.e. increase the monthly payment). The Credit Agreement is between myself and the lender, where the lender pays the broker/insurer a lump sum and benefits from monthly direct debit repayments from me.

The broker is not mentioned as a party on the credit agreement.

I have contacted the lender, asking to increase the monthly payment and for them to recalculate the period of the loan. They have declined, stating that they must have authorisation from the broker. The broker has, in turn, also declined to authorise any such amendment, as they, and I quote “have never done that before”.

Is anyone able to clarify the following:

- Under the Consumer Credit Act, does the broker have any rights to the agreement?
- Is the creditor correct in claiming that they cannot reschedule the loan payments (even though the agreement is not yet signed and, therefore, enacted?)
- Is this situation fundamentally not the same as that of early repayment, where the lender must recalculate the interest and repayments accordingly?
- Should I chose to reject the credit agreement having now read the detailed terms (which were not outlined to me at the point that I opted to pay by monthly instalments), is the lender or broker lawfully entitled to charge me any ‘administration’ fee?

I look forward to reading your thoughts!

Thanks