Personal Contract Purchase Agreement - Help!

pjones1999

I took out a Personal Contract Purchase agreement from a car leasing company in December 2008, the contracts were signed off the business premises and there was no notice of a cooling off period or any notice of cancellation supplied. I think that I should have been received a cancellation letter with my agreement but there wasn't one and nothing in the T's & C's. We are currently experiencing financial difficulties and can not really afford the monthly payments. Does anyone know if I have any rights to hand the car back without paying outstanding amount?

Kilty_2

You can't hand the car back without penalty until the final payment is due.

Do you know what the settlement figure is? If there's enough equity in the car you could possibly sell it to pay the balance.

bigjl

You can come to an agreement with the finance company, if they will accept the car the back, but only they can help you with that.

You have had the car for over 2 years,, so potentially you may have paid enough of the agreement to voluntary terminate, though the sensible option is to economise elsewhere as you will lose all the money you have paid, and still need to buy a car.

I assume this is an agreement with a lump sump at the end or balloon payment?

Sadly due to the illusion of affordability it isn't unusual for people to over commit in these kinds of agreements, I know the wife and I did back in the late '90s, we came to an agreement and surrendered the car, but lost the £4000 deposit and the £6500 of payments, but we didn't owe anymore money, if i was in the same position I would have struggled to make the payments.

pjones1999

Hi, thanks for your comments.

I understand the agreement and can hand the car back in November with no penalty. I just thought i saw somewhere that if I signed the agreement off premises I was entitled to a cooling off period and because I never received this letter or notice of the cooling off period I may be able to hand the car back with no penalties because the agreement would be unenforcable.

It looks like the agreements I have signed were supposed to be signed on premises with no cancellation rights but this wasn't the case? They were posted to me and I posted them back and took delivery of the car a week later.

I don't want to seem like I am trying wriggle out of my debts, I am happy to hand the car back and don't want any money. Just struggling at the moment and will do anything to reduce my outgoings.

Kilty_2

I've no idea but it really annoys me that people start looking for loopholes when they realise they've signed themselves up to something they can't afford.

NeverAgain_2

...I've no idea but it really annoys me that people start looking for loopholes when they realise they've signed themselves up to something they can't afford...

Best you steer clear of the bankruptcy and debt boards.

(I agree with you, but we musn't judge, must we?)

pjones1999

I am not proud of looking for loopholes and it hurts me deeply being in this situation. I have paid for this car with no problems for 2 years and my wife has now been made redundant. I have 4 kids and will do anything for them all. 2 years ago I could afford this car no problems, in fact I could 6 months ago! When Lloyds TSB are charging me £80 for going over my overdraft for 3 days taking me back into my overdraft you kind of start thinking who gives a damn anymore.

If I can find a loophole to reduce my debts to make life easier and happier for my family I will! If you think bad of me for this then you probably live on your own and have no responsibilities! Wouldn't normally pre judge, I am actually a nice guy treading water, but you quite clearly have formed an opinion of me!

bigjl

The signing of contracts on the premises of the person arranging the finance used to be the norm, I think it still is in Scotland but not really sure.

Where did you sign the contracts?

Did they post them out and you signed and returned.

The cooling off period would have been just that, a period to cool off after signing the contract, but before you have taken delevery of the goods.

Your only chance is if the finance company are willing to reduce the payments due to your current financial position.

There are no loop holes that I can see.