Clarification of 'legalese'

[wilsmith3868746]

I'm looking over some old documents and looking to clarify some information, if someone would be so kind? I appreciate some of these questions may sound silly, but I'd rather ask than assume. These questions relate to an agreement titled "Credit agreement regulated by the consumer credit act 1974 running account short term flexible loan facility ("Overdraft")". This is in relation to an 'overdraft facility' provided by a pre-paid card company.

1. Firstly, the agreement states that repayments must be made 'on or before the 21st day of the month following the month on which the agreement is made'. Am I right in assuming that because the agreement was signed 13/10/2012, no payment would be due on 21/10/2012, and would instead be due on or before 21/11/2012?
2. The agreement also states, "The duration of this credit agreement. This agreement is for a duration expiring on the 21st day of the month following a period of 12 months from the date this agreement is made." Would this agreement have essentially expired the 12 months later, or was it correct that the contract/service was automatically extended each year? There was a fee of £50 charged to the account every year following the original agreement, to provide the overdraft facility, but my (limited) understanding is that this agreement would have expired each year and a new agreement would have needed to be signed?

Apologies for the potentially silly questions, I'm currently trying to understand the terms of an old account that has recently surfaced.

[warwick65]

Re: Clarification of 'legalese'

Was this some kind of pay day loan ? It sounds a bit like the type of loan that minicredit and txtloan did - basic credit facilities that you could take whenever you wanted but had to pay at least the interest on the due date.

If so I would think the first payment was actually due of 21st Oct but without actually seeing the agreement it is hard to say - a few lines possibly taken out of context is difficult to interpret

Again the law did change regarding overdrafts and I believe it worked that the bank had to renew your overdraft and send you new terms erevy year but you didn't have to sign anything - I stand to be corrected if i am wrong