unregulated hire agreement

Blackhill1948

hi all, been offered re finance agreement by nationwide corporate finance to save a management fee they charge every 6 months seems to good to be true? 
any had same offer

[Deleted User]

I don't understand what that means.  What is too good to be true? And who is charging what every 6 months?

Blackhill1948

company charges a management fee of £200 plus vat each 6 months for loan now why would a company making this sort of money decide they would no longer charge this amount and let the customer just keep it hence looking for some sort of catch

[Deleted User]

The catch, or lack of it, will be in your agreement.

That will explain what the loan is costing you via fees or interest.

Clive_Woody

They will have built the cost in somewhere else - higher APR, variable APR, extended term, completion fee - or they want to tie you in for long term finance.

I assume this company has no connection with Nationwide building society?

Clive_Woody

I'm not entirely sure of the implications of signing an unregulated hire agreement, but you might want to clarify these before agreeing.

Blackhill1948

Thanks Clive,   unfortunately unregulated agreement  signed awhile back now so some of loan has been repaid,this company seem to have taken over from a company called Blue Rock and therefore need me to sign papers again to alter contract  hence the inducement of removing the management fee  also your right they have nothing to do with nationwide building  society 

Sandtree

Over 150 members of staff on their "Meet the Team" page, though some look remarkably like the same people, and only 2 are female from my count.

That aside, with an unregulated finance agreement you need to read and understand the terms of the agreement intimately as there is no falling back onto statutory rights etc. Whilst any two parties can agree something irrespective of what a contract says the only thing you can force them to do is what the contract says... whilst you mention a service fee has fallen away you need to double check what else, if anything, has changed in the agreements T&Cs.

DrEskimo

Sandtree said:

Over 150 members of staff on their "Meet the Team" page, though some look remarkably like the same people, and only 2 are female from my count.

That aside, with an unregulated finance agreement you need to read and understand the terms of the agreement intimately as there is no falling back onto statutory rights etc. Whilst any two parties can agree something irrespective of what a contract says the only thing you can force them to do is what the contract says... whilst you mention a service fee has fallen away you need to double check what else, if anything, has changed in the agreements T&Cs.

Usually that if you want to settle the agreement in full you still have to pay the full amount of interest that would be payable. Sometimes along with a fee.

Sandtree

DrEskimo said:

Sandtree said:

Over 150 members of staff on their "Meet the Team" page, though some look remarkably like the same people, and only 2 are female from my count.

That aside, with an unregulated finance agreement you need to read and understand the terms of the agreement intimately as there is no falling back onto statutory rights etc. Whilst any two parties can agree something irrespective of what a contract says the only thing you can force them to do is what the contract says... whilst you mention a service fee has fallen away you need to double check what else, if anything, has changed in the agreements T&Cs.

Usually that if you want to settle the agreement in full you still have to pay the full amount of interest that would be payable. Sometimes along with a fee.

Potentially if the contract doesnt consider early settlement they may even refuse to allow you to settle it early in the hope that something happens along the way that means some payments are late/light and additional fees become due.

We have a similar thing with our ground rent on our flat... to pay by DD or SO they charge you a notable fee, pay any other way and its free however if you are late in paying then large charges come in plus their biggest hope that they can force the lease to be forfeit. Clearly paying electronically reduced admin and costs but they want to encourage other mechanisms that have a higher rate of being forgotten.