Help with a Hire Agreement regulated by Consumer Act 1974

jmickey4

HI I took out a Hire Agreement regulated by the consumer credit act 1974 with Admiral Leasing. The agreement was for a Sunbed worth approx. 48,000 gbp. I paid a deposit of £12,180 in April 2013 and have made 17 monthly payments of £1370.44 since then. My shop has ceased trading due to a business partner stealing. I have put the sunbed in storage, I thought that maybe admiral would take back the goods seeing as I had paid over half and thought I could exercise my rights through the consumer credit act 1974, but they have told me it doesn't apply to me and that even at the end of the agreement I wouldn't own the goods. This has cost me £117,000 so far and I have had to sell my home, any ideas on what I can do?? I have tried to sell the bed but having no luck at all TIA

dealer_wins

I thought the CCA only applied to loans of upto £25000?

fermi

dealer_wins wrote: »

I thought the CCA only applied to loans of upto £25000?

Think the maximum limit was removed from April 2008 onwards?

May still be exempt due to being for business (i.e. NOT consumer) purposes or to a person of high net worth I think?

Will have to look it up, as not something I come across very often.

Apples2

I only found one non motorcar example of ending a lease like this early.

The terms were all payments due until the end of lease, minus any interest rebate plus adminstration (circa £250).

chanz4

whats your agreement say

thebritishbloke

What does it say in the contract in regards to how many payments you had to make? How long was the original contract?

bris

You are not a consumer so this law does not apply to you.


This was a business transaction and your contract says what your rights are.


If you are a ltd co just let them bankrupt you, if you are a sole trader or partnership with assets then you are stuck with the contract.


As a business you are supposed to read and understand contracts or hire someone who can.

InsideInsurance

bris wrote: »

You are not a consumer so this law does not apply to you.


This was a business transaction and your contract says what your rights are.


If you are a ltd co just let them bankrupt you, if you are a sole trader or partnership with assets then you are stuck with the contract.


As a business you are supposed to read and understand contracts or hire someone who can.

Some micro businesses do gain the benefit of some consumer protection law

Not a CCA expert but the FOS website talking about S75 protection under CCA does state that small partnerships, sole traders and other unincorporated businesses are covered by it. If this one section does apply to small businesses then it may well be that others do as well.

A Ltd company isnt made bankrupt, it goes insolvent and then into liquidation.

SeanG79

bris wrote: »

You are not a consumer so this law does not apply to you.

This is not correct, if you have signed an agreement regulated by the consumer credit act, you are afforded the same rights as a private individual.

A lease is different from an HP/Conditional Sale agreement and as such you do not have the right to voluntarily terminate (VT) the agreement after making 50% of the payments. You are liable for all the payments and at the end of the lease agreement, you will not own the goods, you are left with the following options at the end of the lease:
1. Carry on leasing the equipment
2. Return the goods to the finance company at you own cost and terminate the agreement.
3. Some brokers/lenders offer you a route to title where the goods are sold via an independent 3rd party and allow you to purchase title to the goods for a fee.

Please note: You must notify the finance company in writing 90 days (3 months) prior to the end of the primary period of your intention to terminate the lease after the primary period.

Some finance companies, if you terminate before the end of the primary period, the finance company will offer a discount of 3% of the remaining payments, but legally you are obligated to pay all the remaining rentals that fall under the primary period of the agreement if you terminate the lease early.