Fortis Lease UK Retail

Clayers

Hi

I;ve got what is titled a fixed sum loan agreement with the above company. I'm looking at changing my car and have negative equity on it. I'm looking into the halves and thirds option, and have paid 31/60 payments, and my settlement figure is less than 50% of the credit I was given.

Their terms and conditions state that they are the owners of the car until I've paid the loan off - which is not how a fixed sum loan works I believe as the title to the car should pass to me as soon as I've taken the loan out. I know that under a fixed sum loan agreement I can't hand the car back, but the terms and conditions seem to indicate that it's actually a Hire Purchase - indeed one of the clauses says that I am hiring the car from them.

I'm pursuing this with Fortis, but wondered if anyone else had experienced it?

Thanks

ILW

Sounds like a loan agreement secured on the car.

Clayers

Are you aware of whether that would meet the criteria for me to able to hand it back?

Thanks

SeanG79

You will have to read the T&C's, it should define voluntary termination rights.

VT, if available is when you have paid 50% of the agreement (total vehicle cost + total charges).

chanz4

Its a lease agreement though, so wont be hp

SeanG79

chanz4 wrote: »

Its a lease agreement though, so wont be hp

How do you know its a lease agreement? Fortis Lease UK who are no longer lending, wrote Finance Lease and Hire Purchase/Lease Purchase agreements, irrespective of the agreement the vehicle is hired for the duration of the agreement?

Although you are correct if its a finance lease there is no VT available.

Also if it is a loan agreement there is no VT as generally there is no security held.

however if it is a HP agreement, which the OP suggests the T&C's imply, then there will be termination rights provided the agreement was regulated.

Clayers

Thanks to everyone who has contributed so far.

Having spoken to the CAB, I'm putting my complaint in writing to Fortis on the basis that dispite this being called a Fixed Sum Loan agreement, their T&Cs actually make it a HP agreement.

Has anyone got any ideas on where I could get legal advice about it?

Is there anywhere I could look at on the web to see if this has been successfully pursued previously?

DCFC79

Clayers wrote: »

Is there anywhere I could look at on the web to see if this has been successfully pursued previously?

Google is your friend

Clayers

I've written to Fortis, who replied, ignoring all the points I made about their conditions indicating that the contract is a hire purchase, and declining my request.

I'd joined Which, and using their Legal service have written to them again, quoting the exact clauses in the contract which indicate its Hire Purchase (in particular the clause that says that I'm hiring the car from them!), and asking them to either precisely confirm why they don't believe it to be a HP agreement or agreeing to have the car returned.

I await their response, but suspect I'm off to the Financial Ombudsman. Cheers for all the previous advice - just thought I'd update, in case there are any other Fortis customers out there in the same situation as I am.

Clayers

Final update - I VT'd the car last Wednesday, after the Financial Services Ombudsman agreed with Fortis that I could do this to resolve my complaint. Had to spend £360 on the car to clean it up before Fortis would take it to auction (the auction place, Manheim wanted to charge me £1600 for the work!), but it's now gone!

Finally sorted - thanks for the advice!

love_a_bargin_2

Does anyone have contact details for Fortis Lease Uk retail ltd, struggling to get hold of them.
Thanks