Help with a Contract Purchase Agreement Please

jonnybrilliant

Hi all, I have lurked for ages on here, and got some fabulous advice and hints and tips! I wonder if anybody could help me with this please?

I have a 2005 Contract Purchase agreement (non regulated) with £36,000 worth of borrowing.

Page 2 of the contract states, Terms and Conditions (For use when hirer is not a corporate body and the balance financed does not exceed £25,000)

My question is - is the £25,000 a limit imposed by law, or just by the finance companies choice, and if its the law, is the contract still valid?

If it is invalid, does anybody know the correct term I would use in a court defence please?

((This is a long standing wide ranging argument I am having with the finance co))

Many thanks for any help anybody could give!


Jon.

standupguy

The £25k limit applied to regulated agreements for individuals. It was the limit imposed by the CCA regulations not the Finance companies

If an individual borrowed over this amount the agreement was un-regulated - which means the terms are outside the Consumer Credit Act.

This rule has recently changed so that any amount borrowed by an individual must now be on a regulated agreement but this does not make an old agreement such as yours invalid.

jonnybrilliant

Thanks, I think I get you, I am still a bit unsure as the agreement was only ever a non regulated contract purchase agreement. I don't understand how an agreement that says it is for a financed amount of £25,000 or under, can actually be filled in for £36,000!

Jon

standupguy

Oh, I see what you mean now.

Does your agreement have clauses detailing one third and one half HP amounts and your rights regarding terminating the contract?

If so, it looks like you have been signed up on a regulated agreement when it should have been an unregulated agreement.

If this is the case, the Finance company would have to stand by the terms and conditions on the agreement that you signed.