HP Agreement - Unenforceable or not?

suziedarkness

I am just wondering if anyone knows whether an acceptance fee on an hp agreement can be included in the credit or if it should be paid seperately?

Suzie

fatbelly

Hmmm - it's a 'charge for credit' isn't it? Section 9(4)?

Does your agreement bung it into the 'credit' figure?

CCA 1974
9.—(1) In this Act " credit " includes a cash loan, and any other form of financial accommodation. (2) Where credit is provided otherwise than in sterling it shall be treated for the purposes of this Act as provided in sterling of an equivalent amount. (3) Without prejudice to the generality of subsection (1), the person by whom goods are bailed or (in Scotland) hired to an individual under a hire-purchase agreement shall be taken to provide him with fixed-sum credit to finance the transaction of an amount equal to the total price of the goods less the aggregate of the deposit (if any)
and the total charge for credit. (4) For the purposes of this Act, an item entering into the total charge for credit shall not be treated as credit even though time is allowed for its payment.

suziedarkness

Hi Fatbelly,

thanks for replying.

Im really sorry I dont understand what that actually means.

Basically I have an HP agreement which I am now querying due to their stroppy behaviour.

There is an acceptance frr of £145 and a purchase fee of £75.

Now it clearly states on the agreement that the last payment will collect the £75 in addition to the last payment, but there is no mention of the acceptance fee and from what I can tell it has just been included in the total charge for credit along with the loan for the car and interest added.

now I an trying to find out if this is a no no as in the case of Wilson v First County Trust.

Suzie

petermb_2

All fees and charges should be included in the total cost of credit. each item that makes up the cost of credit should be indivually listed.

The only way such a charge could make the contract unenforceable is if the fee was accidently included the "Amount of Credit". This would make the credit mis-stated.

suziedarkness

The agreement is set out:

Total Cash price £=========
Advance payment £===========
Hire purchase charges (i) £ =====
Acceptance Fee (ii) £ =====
Purchase Fee (iii) £ =====

Total charge for credit (i)=(ii)=(iii) £ =========



is this correct?

standupguy

suziedarkness wrote: »

The agreement is set out:

Total Cash price £=========
Advance payment £===========
Hire purchase charges (i) £ =====
Acceptance Fee (ii) £ =====
Purchase Fee (iii) £ =====

Total charge for credit (i)=(ii)=(iii) £ =========



is this correct?

Yes, it is correct.

HP companies introduced fees of one kind or another a long time ago to try and protect their profit margins and as time has passed the fees are constantly being increased.

suziedarkness

I thought that the acceptance fee was not credit as such and had to be paid seperately instead of being incorporated into monthly payments

Suzie