Question about Car Finance HCP with agreement secured against the house

nissanxtrail

Hi
I took out a HCP in November 2018 with a Finance company beginning with B for a Nissan X Trail 2015 model circa ~£15k. It is a 5year agreement however I was not informed that in the event of any late payments/missed payments they may repossess the house. I am not a registered business, rather a straightforward employee working full-time. I complained to this company who agreed on the phone that this form was an error however in the official response letter they were not going to do anything about it. Case it now with the Ombudsman.
Has anyone faced anything like this before? I believe it is a case of a product being miss sold and was not informed at the time of this being secured against the house.

DrEskimo

Is it a unregulated loan agreement?

foxy-stoat

What is HCP, neither I or Google have heard of it?
Did you read what you were signing, and still do not know how a finance company can secure against your property without your mortgage lender agreeing.

nissanxtrail

Apologies it's a Hire Purchase agreement. Not sure why I mentioned HCP.  It's covered by the Consumer Credit Act of 1974. Should I look out for any other regulatory body? 

Nearlyold

Motor Vehicle Hire Purchase will be secured on the car because that is the item you are hiring. Has something happened to the car, eg stolen not recovered, accident damaged and wasn't insured - are you behind on payments.?

foxy-stoat

I very much doubt they will be able to repossess your if you fail to keep up with payments on a HP agreement for a car.

What does the wording say on your credit agreement?

nissanxtrail

Not behind on Car Finance payments and the car appears fine besides the usual services/MOT that it goes through annually, which they have passed w/o major faults. I am just concerned that I was not told at the beginning of the agreement and the form appears faulty. Wording says:
Missing or Late Payments:
If you fail to make any Repayment on time we will charge you interest on it at the Interest Rate and we may charge you fees. If we (B) end this agreement, you must return the goods to us and pay the amounts remaining. If you do not do so, we may bring legal proceedings and obtain an order to repossess your homr

Nearlyold

What is the "form" you are referring to, is it a document you have only received recently or do you mean that wording is in the original finance agreement you signed?

I don't think it means that the loan is secured on your house, just that if you default on the loan and owe them money they will take action to recover the monies from you including perhaps a charging order on your property.

Thrugelmir

Has anyone faced anything like this before? I believe it is a case of a product being miss sold and was not informed at the time of this being secured against the house.

Have they actually threatened repossession? Or simply put a charge on the property to secure the debt owed. If so, very much standard practice for significant sums of money. 

Nearlyold

Thrugelmir said:

Has anyone faced anything like this before? I believe it is a case of a product being miss sold and was not informed at the time of this being secured against the house.

Have they actually threatened repossession? Or simply put a charge on the property to secure the debt owed. If so, very much standard practice for significant sums of money. 

OP says they are not behind on payments.

nissanxtrail

No repossession and the form is the electronic agreement signed at the beginning. How do I know if the form is unregulated etc?