Non Regulated Lease Agreement (vehicle)

arizonaswift

Hi I'm new to the site. Does anyone know an answer to this?

If an Agreement (Lease for Vehicle) was signed by customer on 25/3/09 and a date was manually added by Finance Co on 2nd April 2009 would this be Non Regulated Lease? It states it is a Non Regulated Business Lease.

Customer is a Sole Trader. Not Ltd Company.

The total amount of credit was, I think £23,942.50

I thought that since 2008 all Lease Agreements are Regulated by CCA? If so what the are implications of this being stated as Non Reg?

Does anyone know? I'd be grateful for any replies or if anyone has had a similar situation.

nomoneytoday

Was it signed by the customer AFTER the finance co changed the agreement type?

arizonaswift

Hi - thank you for your reply
It has always stated it was a Non Reg Lease (business) agreement and was signed on 28th March 2009 and dated by the finance company on 2nd April 2009 after the customer signature yes.

i thought that all finance was regulated by CCA as there was a change to the CCA by new legislation?

So I wonder should it be regulated - does this mean it could be unforceable - as it says unregulated and they have never changed it? or is it presumed to be regulated - even if it states non reg?! thanks for any help

Tixy

There may be an answer on this link, which covers agreements between 08 and early 11.

Eg possibly it comes under the agreements for business purposes section 3.14? http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft140.pdf
(may be it could be exempt for some of the other reasons in that link, as you can see the agreement and know the circumstances it might be worth considering the various exempt clauses on there)

arizonaswift

Thanks for that link.

I tried to check what they define ' business' as in Section 189 of the Act but it is not that clear!

This particular agreement was in Name of Custome e.g. Mr A Example and then t/a mybuisness and then a home address

Therefore as a Sole Trader / self employed basis with no employees so would this be a business or individual?

arizonaswift

Since 6 April 2008 most consumer lending falls under the CCA. Previously lending had to be for less than £25,000. This limit has now been removed. Lending to incorporated entities and partnerships of more than four individuals falls outside the CCA. As well as individuals the CCA applies to sole traders, small partnerships and lending in a non-business capacity. The CCA also applies to persons carrying out ancillary business:

JUST FOUND THIS on a website so would seem it is regulated? Does this mean that it could be unenforceable as it has been drafted as a non reg when it should have been regulated and they had presumed business and not explained clearly the terms and implications?

molerat

I wondered in which direction this thread would be heading.

arizonaswift

Asked question after looking on internet. Thought might be a similar case or situation i.e. someone would know if a lease agreement to a sole trader should be regulated and if it has been signed as non reg then what can be done - if anything about it ?

Tixy

Some hire agreements did not need to be regulated, all depended on how the agreement/payments were structued etc I believe. There are so many different types of loans / structuring of hire purchase / vehicle leasing etc that I doubt anyone can answer your question without knowing exactly what type of agreement it was, how the loan was structured etc.

If you are unsure why it was non regulated then you could always write to the lender and ask them to clarify why its an unregulated agreement, they'll probably be able to explain it - and you can then check the legislation based on their answer.

ILW

I believe if it is a rental agreement it will not fall under CCA.

chanz4

should be regulated and you can keep the car for free