Hire Purchase

edited 30 November -1 at 1:00AM in Loans
2 replies 567 views
harmony1_2harmony1_2 Forumite
7 Posts
edited 30 November -1 at 1:00AM in Loans
Don't know if this is the right place, but maybe someone can help me!

I bought a BMW on hire purchase in JUne 2003. During the summer of 2005, it became difficult for me to meet the payments so the finance company issued a default notice. When I read the small print of the initial agreement, it said that if I had paid 50% of the total amount payable I could hand the car back. I was about £1500 short of this amount so wrote to them to request that I pay it and hand the car back. The letter was sent by me in October 2005. I never heard anything back and was quite ill at the time so dug my head in the sand and the car remained unused in my driveway.

Anyway, in July 2006 I got a letter from their solicitors saying that I could not do this as they had issued a default notice first.

I had a look on the internet as the agreement was under the consumer credit act, and the trading standards website says that the car can be handed back once 50% is paid - it doesnt exactly say that this can not be done if a default notice is given. I wrote back a letter in Aug 06 stating this but still have not had any response.

1. Can I complain to trading standards about this?

2. I would nearly have prefered that they repossessed the vehicle as it has been sitting in my driveway now for over 1 1/2 years and is depreciating in value - would i have any come-back on this?

Hope someone can help



  • mjl_3mjl_3 Forumite
    35 Posts
    Hi, I returned a vehicle under HP after half the term of the finance.
    First, are you up to date with your payments? If yes carry on.
    If no, can you pay the arrears so you have met half the repayments?
    Then, contact the finance co and ask to speak to the department for voluntary termination, they all have them.
    They will send you a couple of forms regarding the cars condition. Is it taxed, MOT'd, driveable.
    Depending on your circumstances regards the cars condition, you can SEND IT BACK.
    Be warned, if the car in't mot, driveable or needs a repair you will have to pay a penalty.
    The info they send you will explain all this.
    If you decide to go ahead, fill in the paperwork and retrn it. If you can't meet any or one of the questions, carry on paying and forget about getting shut.
    If you go ahead, they will then send you 3 options, take the car to your nearest car auction, have someone come and collect it, or have it transported away, the latter 2 will cost you.
    The most important aspect is that you MUST be half way thru the payments and not in arrears.
    If you take it youreslf to the nearest auction, don't forget to whip the tax disc out of it and claim a refund from swansea.
    Post a reply and I'll see if I can give you more info.
  • I want to hand my vehicle back to the finance company by exercising this right, but I have a feeling they're being awkward about it.

    Does anyone know the ins and outs of returning a vehicle using this clause. What section of the CCA covers it?

    The finance company i'm planning to VT with has imposed the following conditions, do any of them lawfully apply?

    1. I must make an appointment to return the vehicle to the finance company (can I not return to the supplying dealer?)
    2. Appointments are only availible on tuesdays (are they within thier rights to specify this?)
    3. Appointments will take no less than 2 hours
    4. The vehicle must be taxed and MOT'd (was not taxed when I bought it)

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