Handing my car back

cureforsanity

Hi
it says CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974.
Thats it

standupguy

cureforsanity wrote: »

Hi
it says CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974.
Thats it

That means it is not a HP agreement.
If it was it would say "hire purchase agreement regulated by the consumer credit act"

You have a loan agreement which means you are responsible for the full amounts - there is no right to vt and return the car as there would be with a regulated HP agreement.

~Brock~

cureforsanity wrote: »

Hi
it says CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974.
Thats it

There's your answer. You have a simple straight forward loan agreement, which will be for the loan of a fixed sum of money over a pre-specified term. It is not secured on your car. If it was a HP agrement it would say "Hire Purchase Agreement regulated by the Consumer Credit Act 1974"

That explains why you cannot find termination rights on the agreement, because you have no right to terminate.

As I said before, the lender has registered a financial interest in the vehicle, although this does not necessarily mean that they own it. This is the subject of a lot of controversy because although you are free to sell the vehicle (it is your property), the existence of the entry on HPI could make this difficult.

~Brock~

standupguy wrote: »

That means it is not a HP agreement.
If it was it would say "hire purchase agreement regulated by the consumer credit act"

You have a loan agreement which means you are responsible for the full amounts - there is no right to vt and return the car as there would be with a regulated HP agreement.

Standupguy got in before me but at least our advice is consistent :beer:

standupguy

Going back to the original problem it seems you have the following options: -

1. Keep and run the car until the agreement expires and cancel the order for the new car on the basis that you were mislead by the contract hire company.

2. Sell the car and pay the settlement to the Finance company - you will have to add the shortfall to the sale proceeds.

Whichever you choose it seems you cannot escape the negative equity

cyril82

i'll admit i was presumptuous in stating it would either be a hp agreement or a personal loan with bill of sale, but these presumptions were based on several years experience (yes i do have experience, although not 30 years because i'm not old ) dealing with disputed hp and loan agreements under the consumer credit act

Although, brock and stand up are being equally presumptuous to say that the term "credit Agreement" means it's an unsecured loan. All lending agreements, including, secured loans, unsecured loans, hire purchase, conditional sale agreements, credit cards, store cards, are in fact "credit agreements", the term "credit agreement" is non descriptive.

the likelyhood that you were permitted to drive away in a nearly new piece of collateral without the lender securing their asset remains slim, however one thing has been overlooked here by myself, and by brock and stand up. You may well have a conditional sale agreement, that means the car would remain the property of the lender until the last payment was made, it is like hp but with less rights to cancel for you.

The title of your agreement is non descriptive, it only tells you that the agreement is a credit agreement regulated by the consumer credit act.

The best thing to do at this point is get some clarification. Ring the finance company and ask if you’re allowed to sell the car without settling up, if they say no ask why not, if they say because the loan is secured on the car ask how, i.e hire purchase, bill of sale, or conditional sale agreement.

if they say you can sell ask if it is an unsecured loan agreement. One way or another you will get your answer.

There’s some better advice, apologies for earlier assumptions, but beware of others assumptions too, seek clarification as stated above, it should only take a phone call.

Gorgeous_George

Interesting thread. I had no idea that HP worked as described.

OP, assuming that they will charge the ointerest anyway, you could sell the car and continue to make payments on the loan - rather than pay the loan off with the proceeds from the sale. At least you will have use of the money.

Good luck and please remember to update the thread with the result.

GG

angelicmary85

cyril82 wrote: »

the likelyhood that you were permitted to drive away in a nearly new piece of collateral without the lender securing their asset remains slim, however one thing has been overlooked here by myself, and by brock and stand up. You may well have a conditional sale agreement, that means the car would remain the property of the lender until the last payment was made, it is like hp but with less rights to cancel for you.

Like I said earlier I done exactly that...drove away in a 'nearly new piece of collateral' after signing what I though was an HP agreement...but it was an unsecured personal loan (which I know for a fact is unsecured because I phoned Barclays and asked them)

cyril82

angelicmary85 wrote: »

Like I said earlier I done exactly that...drove away in a 'nearly new piece of collateral' after signing what I though was an HP agreement...but it was an unsecured personal loan (which I know for a fact is unsecured because I phoned Barclays and asked them)

oh, thats alright then, the op must have an unsecured personal loan because you did. :rolleyes:

my point is that when cars are bought, through a dealer in particular, there is usually some form of security on the vehicle.

I think that just about every possible scenario has already been covered here, and as i said earlier, i may have made some assumptions but no more so than those who assume the lack of the term "hire purchase" means it is unsecured and therefore the op owns the vehicle and can sell it. A conditional sale agreement is not a hire purchase agreement but in such an instance the op would not own the car untill the last payment was made.

As i say, the term "credit agreement" is non descriptive therefore, on reflection, i have advised that the op seeks clarification as to what type of agreement they actually have.

standupguy

cyril82 wrote: »

All lending agreements, including, secured loans, unsecured loans, hire purchase, conditional sale agreements, credit cards, store cards, are in fact "credit agreements", the term "credit agreement" is non descriptive.

the likelyhood that you were permitted to drive away in a nearly new piece of collateral without the lender securing their asset remains slim, however one thing has been overlooked here by myself, and by brock and stand up. You may well have a conditional sale agreement, that means the car would remain the property of the lender until the last payment was made, it is like hp but with less rights to cancel for you.




Cyril, some people say that a little knowledge can be a dangerous thing.

If it were a conditional sale agreement the agreement would be headed
" conditional sale agreement regulated by the consumer credit act" and the agreement would have termination rights, the same as HP, but the op states there is none on his agreement.

To say that "the likelyhood that you were permitted to drive away in a nearly new piece of collateral without the lender securing their asset remains slim" - shows that you do not understand the type of underwriting that takes place within Finance companies.

To get around the issue of the half rule on regulated agreements, Finance companies do lend substantial monies unsecured -up to £25000 - that is just on loan agreements to customers that meet the lending criteria for such agreements.

Cyril, I do applaud your enthusiasm but sometimes, if you are not sure, it may be better to keep your own counsel?