Help with Hire Purchase Agreement? Missold?

In_a_state

Hi Guys

Last year I bought a motorhome using a very attractive 12 month 0% finance deal from the dealer.

Basically I financed £40k with Bank Of Scotland (via dealer).

The first 12 months were 0% finance but the dealer stated that I should change the MH every 12 months to take advantage of the MHs small depreciation, 0% finance and trade up to a newer MH.

I had planned to do this but the dealer went under.

0% consisted of a cash payment from the dealer every month.

I then subsquently received a letter from the BoS regarding how I was sold the MH and that the dealer was being investigated for fraud.

I lost 3 months of my 0% finance cash repayments and I wish to change the MH.

I just rang the BoS this morning regarding a settlement figureand I still owe them £39,180 ish from a £40k borrowed.

I wish to know if I have any recompense regarding possibly being missold this agreement.

I'll be the first to admit that the dealer probably pulled some wool over my eyes regarding any small print..I did ask questions but the answers all seemed fine.

Luckily the MH still a decent value but not as much as I owe on the HP, about £3k or £4k less.

Do I have a case to maybe give back the MH back and owe the BoS nothing? I don't wish to have my credit affected in anyway.

All help appreciated.

eschaton

Your issue will be with the dealer, not BOS.

PNPSUKNET

is it an unregulated hp agreement?

In_a_state

eschaton wrote: »

Your issue will be with the dealer, not BOS.

That's what I thought...but they've went under after 12 years of business...I thought I was buying from a strong dealer.

is it an unregulated hp agreement?

How could I tell? I'm not sure...

CLAPTON

you need expert advice... try CAB

as you had a credit agreement then they are equally responsible for the total deal so even if the dealer is out of business you probably have a valid claim on the credit company

seek proper advice.

PNPSUKNET

as its over £30k it is highly likely to be an unregulated finance agreement

lawrie28

Were there not some CCA changes last year. Can you be specific with the date of the purchase, it may make a little difference.

By the sound of it though, there is not much you can do. BOS won't w/off anything, although you need to ask how much of a rebate you are getting on the interest payments. You also need to ask which method they have used to calculate the settlement figure. THey should have used the actuarial method if regulated, and the rule of 78 if not. Actuarial is better for you.

See what kind of deal you can get for selling the MH, either privately or to a dealer. Losing £4k in 12 months on that value asset is exceptional. Your alternative is to keep paying, and keep the MH.

PNPSUKNET

should say on top of the agreement if regulated or un-regulated