Can a debt agency buy an HP debt and convert to a loan then chase you for it.

gomt

Thanks for the input everyone.
I now have a clear idea of the course of action to take.


Merry Xmas.

[Deleted User]

have you thought of getting legal advice or at least talking to CAB?

jonesMUFCforever

As I see it you signed the credit agreement (with or without glasses) therefore you have to pay back what you signed for.
Even if an error happened you still need to pay back the monies as per your CCA.
By withholding the payments you have screwed up your credit files and if you went to court it is my opinion that you would lose.

I don't doubt you overpaid but you have gone down the wrong road by not meeting the repayments.

Anyone in theory could put a charge on your house BUT only a court can authorise the lender to use it.

gomt

Thanks. The main issues that I need to know are:
Is it legal to purchase a hp debt and demand payment as a new agreement of a different type of lending i.e. A loan. Without any signatures for that new loan.
Also can that company use the court system to demand immediate payment of the full amount by reffering to a default of payments on that new loan without me seeing or signing an agreement for such repayments.

forgotmyname

How can the factory say you overpaid by 20%?

They will have a RRP but that doesnt mean the dealer has to sell it for that price.

Dealers adds 20% onto the price expecting a customer to haggle it back down. You come along and pay the full price?

Whether they overcharged or not is not an excuse for not paying the loan/HP.

Unless they arranged a collection date and failed to turn up you chaining it to a fence could be seen as negligence and not looking after their property. So liable.

gomt

The factory had a set price and this was a factory franchise rather than an independent. So maybe that had something to do with their comments.
However that is not the issue now.
What I was wanting to know was can a dca purchase an hp debt secured on a vehicle and convert that debt into a loan without any communication or signatures from the debtor.
Thanks

fwor

I suspect that this is one of those cases where asking unqualified people on the internet is a false economy, and spending a little money on advice from a solicitor would be money well spent (or if you are a union member, no spend may be necessary, as legal advice is a benefit of membership in most unions).

I don't see how it could be possible for the DCA to be retrospectively changing the terms of your contract, but I strongly suspect that that is not what is happening. As suggested earlier, they may have applied for a charge on your property, and you are simply interpreting their actions wrongly.

Incidentally, if you do have solid evidence that you have been charged VAT twice you should raise it with (IIRC) HMRC - as I understand it, charging a customer VAT twice for the same item is fraudulent.

gomt

Thank You. The DCA has said in their letter to me that it is a loan that I am supposed to now have with them. BUT of course I have no agreement to actually check this.


As for your kind suggestion about the VAT that is possibly the case that it was fraudulent. But of course unfortunately the dealer who sold me the bike went into liquidation so they don't exist now.

jonesMUFCforever

gomt wrote: »

Thanks. The main issues that I need to know are:
Is it legal to purchase a hp debt and demand payment as a new agreement of a different type of lending i.e. A loan. Without any signatures for that new loan.
Also can that company use the court system to demand immediate payment of the full amount by reffering to a default of payments on that new loan without me seeing or signing an agreement for such repayments.

Yes it is to both questions. - HP is a loan nothing more nothing less.
You did not repay they decided to send it to a recovery agent - perfectly legal.

gomt

I will leave it at that then.


So in your opinion (which could very well be fact) it is legal to buy one type of agreement and turn it into another type without any communication or 'new' signed agreement with the debtor.


I had been taking the view, maybe wrongly, that also MSE member fwor had commented: "I don't see how it could be possible for the DCA to be retrospectively changing the terms of your contract".


Thanks anyway all who contributed.
If anyone else sees this and has another slant on it, I would be keen to know.

jonesMUFCforever

...So you completely disregard the fact that you stopped paying ......then complain about the loan going to a debt collection agency?

The debt did not just go to a DCA either - you would have had plenty of chances to pay the arrears..........but now?

To make matters worst you let the bike be vandalised!!!

.......But don't worry they won't chuck you out of your house they will just wait until you want to move - then you will pay or any sale will fail.