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Hire purchase - cancelling an agreement
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# 1
denis06
Old 21-07-2007, 7:04 PM
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Default Hire purchase - cancelling an agreement

I have today signed an agreement for hire purchase of a caravan. I am not taking delivery of the caravan for another 7 days. Since arriving home I have seen that personal loans are alot cheaper than hire purchase.
The question is - can I now cancel the HP agreement and take out a personal loan or am I stuck with the HP agreement.
I thought that I had a cooling off period but the agreement says that I have no right to cancel the agrement under the Consumer Credit Act 1974.
What is the legal position please???
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# 2
Cats pajamas
Old 10-12-2007, 5:56 AM
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Dear all,
I'm in a very similar position. I bought the car Sunday last week and STUPIDLY didn't check the fine print (I'm on strong meds although I know that's no excuse).
Can it be true that there is no cooling off period? even a week? I have worked out that this mistake is going to cost me 1500 over the 5 years of the agreement.
Please come back to me - clearly I need to act really quickly, assuming I can act at all. My credit score is excellent and normally I'm really vigilant.
Cat
Amazon Sellers Club member 0021/Ebay/carboot/extra hours junkie
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# 3
CLAPTON
Old 10-12-2007, 11:31 AM
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If you signed the agreement on the agent's (seller's) premises, i'm afraid there is no cooling off period. You can of course ask.
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# 4
Xsniper
Old 20-01-2009, 12:53 PM
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Im also in an a Hire Purchase Agreement and would like information on the Termination of Rights why must I pay 345.87.40
The Ballance Payable is 46174.80

Details

Total cash price [inc VAT] A 46587.00
Less Deposit B 23000.00
Amount of Credit C 23587.00

Charges D 22407.80
Accept Fee E 105.00
Credit Facility Fee F 75.00

Total Charge for Credit D+E+F G 22587.80
Ballance Payable C+G H 46174.80
Total Amount Payable A+G I 69174.80

Monthly installments
1 488.29 Incudes the GAP Premium
119 383.29

Already Paid 27758.09 in instalments + Deposit of 23000.00

Termination of your Rights

Total Amount Payable under this Agreement is 34587.40 if you have paid this amount you will not have to pay any more !!!

Your help in this matter would be appreciated
Many thanks in advance
" Sniper "

" Hope all your Children are Generals "

" Quo Fata Vocant "
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# 5
ILW
Old 20-01-2009, 1:49 PM
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I never knew you could buy a car over 10 years.
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# 6
standupguy
Old 20-01-2009, 1:50 PM
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Quote:
Originally Posted by Xsniper View Post
Im also in an a Hire Purchase Agreement and would like information on the Termination of Rights why must I pay 345.87.40
The Ballance Payable is 46174.80

Details

Total cash price [inc VAT] A 46587.00
Less Deposit B 23000.00
Amount of Credit C 23587.00

Charges D 22407.80
Accept Fee E 105.00
Credit Facility Fee F 75.00

Total Charge for Credit D+E+F G 22587.80
Ballance Payable C+G H 46174.80
Total Amount Payable A+G I 69174.80

Monthly installments
1 488.29 Incudes the GAP Premium
119 383.29

Already Paid 27758.09 in instalments + Deposit of 23000.00

Termination of your Rights

Total Amount Payable under this Agreement is 34587.40 if you have paid this amount you will not have to pay any more !!!

Your help in this matter would be appreciated
Many thanks in advance


May have been better to start your own thread.

You seem to have paid over 50k already so that satisfies the half rule - you have already paid over the 34587.

So you can terminate the agreement and return the asset.

Are you sure the value of the asset is worth less than the settlement figure?
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# 7
Xsniper
Old 27-01-2009, 3:14 PM
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Quote:
Originally Posted by standupguy View Post
May have been better to start your own thread.

You seem to have paid over 50k already so that satisfies the half rule - you have already paid over the 34587.

So you can terminate the agreement and return the asset.

Are you sure the value of the asset is worth less than the settlement figure?
If the Ballance payable is 46174.80 x .5 = 23087.40 which is half ? where does this fig come from 34587.00 !!!
" Sniper "

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# 8
standupguy
Old 27-01-2009, 3:57 PM
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Quote:
Originally Posted by Xsniper View Post
If the Ballance payable is 46174.80 x .5 = 23087.40 which is half ? where does this fig come from 34587.00 !!!

It is half the total amount payable not half the balance payable.

so, it is half of 69174.80 which is 34587
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# 9
Keyboard
Old 17-10-2010, 11:37 AM
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Talking There might be a way.....

Hi

I came across this thread via Google a couple of weeks ago having found myself in a similar position to the OP. I was told by the garage that I could not cancel the HP agreement as I had no rights to a cooling off period and it was a "non-cancellable HP agreement". However, and the reason I'm posting here, I was able to cancel it, at a fee........

The HP agreement was for 9,049 with interest and fees over 5 years amounting to 3,048. The APR being some 12.6%.

I now have a personal loan for the same amount but interest and fees over the same period amount to 'just' 1,791. The APR being 7.6%.

Therefore a gross 'interest' saving of 1,257.

After getting nowhere with the garage I decided to call the finance company. I was very surprised to learn that they couldn't cancel the agreement but that the garage could if they so wished. I was dealing with a fairly large garage group so I rang the head office rather than the local branch I had previously dealt with. I explained that I had made a mistake and now wished to end the agreement early - I still wanted the car, I just wanted to pay by a different means. They were very understanding but couldn't actually answer the question, but would pass it back to the local branch.

I had a call from the branch the next day, they oddly stated that the finance company should not have told me the agreement could be cancelled as they had already received the money. However I could for a cost of 129.55. I then had ten days in which to pay the 9,178.55 to the finance company - just enough time to take out a personal loan with a much lower interest rate.

The letter I received from the finance company stated that I was entitled to a rebate on the interest/fees in accordance with the "Consumer Credit (Rebate on Early Settlement) Regulations 2004". That rebate, in my instance, was 2,918.45!

I'm afraid I have no knowledge of how much time those 'early settlement' regulations give you but I would suggest the quicker you act the more chance and cheaper it will be to cancel an agreement.

The ability to end the HP and take out a personal loan has thus saved me 1,127.45.

I do hope this information helps others, I know that when I searched there were lots of sites saying I couldn't cancel - and this one seemed the same - and I was becoming rather despondant. I'm sorry that I don't have more detail about how the regs work.

The moral of course is to check other methods of finance before signing up to anything!

Good luck.
Did you know that you can get cashback from Ebay via: www. quidco.com ?
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# 10
standupguy
Old 17-10-2010, 2:08 PM
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Keyboard, what you did was to early settle your agreement rather than use the word cancel.

All settlements have to be calculated within the cca rules and as you only had the agreement a very short time, most of what you had commited to regarding interest and fees was rebated.

Anyone can settle their agreement at any time, just ask for a settlement figure.
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# 11
ilovebanksMCMLXXXI
Old 17-10-2010, 10:17 PM
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You can probably get out of the HP agreement if you've not yet taken delivery.

With HP the title of the goods passes to you but if you've not yet received them goods then legally the title cannot be tranferred.

Bit of a grey area but you should be able to get out of it.

CLAPTON is correct what has been posted but a HP agreement is only 100% live once you are in receipt of the goods.
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