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Car Finance - can I hand back car

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Hello,

I hope you can help. We took a car out, paperwork is headed ' Credit Agreement Regulated by the Consumer Credit Act 1974'

In the agreement it states 'You do not not have the right to cancel this agreement under the Consumer Credit Act 1974 or the time share act 1992. In addition you will not have any right to cancel under the Financial Services (distance marketing) regulations 2004 unless we tell you otherwise in writing.'

We have paid more than 50%, but can we hand car back given this statement?

Thanks in advance,

GK
Sealed pot challenge - 561
«1

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    how much was the credit for
    when was it taken out
    was it HP
    or what
  • CLAPTON wrote: »
    how much was the credit for
    when was it taken out
    was it HP
    or what

    Hi,

    I don't know if it was HP it just says 'Credit Agreement regulated by the Consumer Credit Act 1974'. It has all the car details on it - mileage, registration etc... We have the balloon payment option or hand car back.

    It was taken out Feb 07 for 43 payments of £302. We have paid more than half the total amount payable on the agreement.

    Look forward to your response,

    Thanks
    Sealed pot challenge - 561
  • ~Brock~
    ~Brock~ Posts: 1,715 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The wording you have given is in relation to the fact that there is no cooling off period because the agreement would have been signed on trade premises.

    The fact that the agreement is headed 'credit agreement........' sounds like it is not a hire purchase or conditional sale agreement so, no, there will not be a right to terminate. The flipside to this is likely to be that you may sell the car yourself and settle the finance.
  • Thanks guys,

    I have read through this agreement a few times now:

    Brock: Through out the terms and conditions (two pages long in tiny print) it consistently talks about the goods - keeping the goods in good condition, keeping the goods insured, keeping the goods serviced etc.... Would it say all this if it was a personal loan? Also we either give car back OR make balloon payment so my feeling is it is not a personal loan.

    B-A-A-B: It has none of those other headings anywhere. From reading it, I really think it is some kind of HP/conditional sale agreement. I just think they have worded this to confuse us in this situation!

    There is a box that says ' The Consumer Credit Act 1974 lays down certain requirements for your protection which should have been complied with when this agreement was made. If they were not we cannot enforce this agreement without a court order. The act also gives you a number of rights 1) you can settle this agreement at any time by giving notice in writing and paying off the amount you owe under the agreement which may be reducced by a rebate. 2) If you received unsatisfactory goods or services paid for under this agreement, you have the right to sue the supplier or us both. 3) You can still sue us if the supplier goes out of business'.

    It also says in the small print somewhere 'If a clause or section of tis agreement is not legally effective, the remainder of this agreement will remain effective.

    It's not my car it's my OH. Even if we had the option to sell it wouldn't cover the finance. I dont think we can sell becausee it also say things like 'you cannot let a creditor take the goods, you cannot give anyone rights or possesion of the goods'.

    We will call the finance people today but don't want to be fobbed off so your thoughts are greatly appreciated. Would be very helpful to get rid of the car instead of letting it run into next year.
    Sealed pot challenge - 561
  • Update:

    Ok, I'm just off the phone to Capital Bank. Spoke with someone who first said it was a personal loan but I queried that as the paper work has so much to do with the car on it. (inc mileage allowance and others as per above posts). She then changed her mind, and said that I have a 'Car Credit Sale' agreement

    She said we can't hand the car back before the balloon payment is due. She said we could voluntary assign the car to them which means they would sell car at auction and then we would have to pay the difference.

    I pushed her on the VT but she said no, it tells me on my loan agreement I can't VT. At that point I said just because you have said that on the agreement doesn't make it true - ie you can't take away my rights under the CCA 1974. I said this, but do not know if it is itrue - I was just trying to push her to see if she would change her mind on the volutary terminate.


    Any thoughts?? Does this mean I cannot VT?

    I would really appreciate your help.

    GK
    Sealed pot challenge - 561
  • More info!

    Someone else has a very similar agreement to me. Here is a link to the thread which has his agreement.
    http://www.consumeractiongroup.co.uk...-car-loan.html

    http://cdr.fastmail.fm/cca/pg3.JPG
    http://cdr.fastmail.fm/cca/pg4.JPG
    http://cdr.fastmail.fm/cca/pg5.JPG

    First link has the first two pages with amounts borrowed etc.. the other three links are the terms and conditions.

    Just to confirm this is not my agreement but my agreement is the same as this one. I am unable to scan mine hence this example.

    This person is questioning enforcebility but we just want to VT the agreement having paid over 50%.

    Your advice is appreciated,

    GK

    Thanks
    Sealed pot challenge - 561
  • Bump bump bump
    Sealed pot challenge - 561
  • ~Brock~
    ~Brock~ Posts: 1,715 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 7 October 2009 at 10:58PM
    As I said earlier, it is not a HP agreement. It is an unsecured loan. The ownership of the vehicle lies with you as explained under section 3 of the terms & conditions.

    Just because the agreement mentions the car does not mean that it is secured on it, although providing the lender paid the dealer directly then you would have still had rights to satisfactory quality under s75 of the Consumer Credit Act.

    If you are wanting out of the agreement then you can sell the car and settle it off.

    The reason why the agreement details the car and has a whole section of the terms devoted to it is, I suspect, because the same type of agreements are used for loans that have large baloon payments at the end, and this type of agreement gives the borrower the choice of returning the car at the end of the term and 'selling' it back to the lender for the amount fo the final payment. This does not seem to apply in your case.

    Note to blind as a bat: I would be interested to see an example of a HP agreement that is not described as an HP agreement in its title - can you give me an example of a lender that has done this?

    EDIT: Sorry, I have just realised that the agremeent posted is not yours, and it sseems that you do have the baloon payment at the end. Same advice applies though - the terms do seem pretty straightforward to me.
  • Thanks Brock,

    Having checked OH's credit file it states this is Hp. I suspect if I do a HPI check on the car, the finance will be secured on it. When buying the car the salesman told us it was a PCP.

    Having spent most of yesterday googling I think this is something Capital are known for.
    Sealed pot challenge - 561
  • ~Brock~
    ~Brock~ Posts: 1,715 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If an interest is noted with HPI, it doesn't mean the finance is secured on the car, just that an interest is noted. Black Horse, for example, do this all the time.

    I agree that there are confusing elements to the agreement, but it is not HP. The terms clearly state that the car is yours, which means that you cannot be 'hiring' it from them.

    The CRA file is likely to be marked as the closest one from the limited number of options describing the type of credit agreement.
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