Hire purchase with no cooling off period!!! Please help!

katchambers

Hi,

A close friend of mine has just bought a car from 'the car shop' and bought it on hire purchase finance over 4 years. He signed the forms and everything, then 2 days later he lost his job! Since he bought the car for the job he no longer needs or wants the car and now that he hasn't got a job he cannot afford the car.

He is trying to cancel the finance but they won't let him, apparently they don't have a cooling off period - I thought you always had the right to cancel but after some research on the net I found this:

Under the 1974 Consumer Protection Act, the cooling off period does not apply if the agreement was signed on the suppliers premises.

That sounds like **** to me! Why don't we get enough protection from things like this!

We have looked into so many avenues, can't sell the car and pay off the loan as there will be about £2k interest.

Is there anything he can do? He felt pressured into the finance and now he doesn't need or want it and he can't get out of it, sounds very unfair and will cause endless problems as he has no money now!!

Please help, thanks

Kat x

carolchick

Hi Kat, I'm afraid he can't cancel as the contract was made face-to-face. The cooling off period for hp etc relates to distance sales in the main and, under the Consumer Protection (Distance Selling)Regs 2000 transport is one of the exceptions. You might want to phone your local Citizens Advice Burea or Law Centre where you'll get free advice but I am sure they will tell you the same. The good news is though that if it is HP and not a conditional sale agreement your friend could ask for a settlement fig now and perhaps it won't be as much as he fears. Good luck Carole

Cumbrian_Male

I thought if you repaid the capital value before the first installment was due the no interest would be applied?

I stand to be corrected though.

katchambers

Does anyone know if that's true? If so that would be great!