Hire Purchase Agreement Error - Can I get out of it?

Oldgoat31

Hi everyone,

I signed up to a hire purchase agreement back in February, then in March agreed a 3 month payment holiday which has now been extended for another 3 months. I have been contacted to say that the latest modified agreement contains an error, the person on the phone said that it was currently 'unregulated' and that I wouldn't be eligible for a rebate if I were to settle early. Aside from this, all the other details like total cost, interest etc. are correct. Would this be grounds to get out of the hire purchase completely as I had signed an agreement with an error written in? Or does it not matter since this is a modifying agreement and not the original document?

Thanks for any help!

Flight3287462

Can you not afford the car?

I very much doubt you can cancel the modified agreement as it would revert back to the previous agreement prior to the error being discovered.  You aren't going to get the use of the car for free for 6 months and walk away scot free. 

foxy-stoat

Oldgoat31 said:

Hi everyone,

I signed up to a hire purchase agreement back in February, then in March agreed a 3 month payment holiday which has now been extended for another 3 months. I have been contacted to say that the latest modified agreement contains an error, the person on the phone said that it was currently 'unregulated' and that I wouldn't be eligible for a rebate if I were to settle early. Aside from this, all the other details like total cost, interest etc. are correct. Would this be grounds to get out of the hire purchase completely as I had signed an agreement with an error written in? Or does it not matter since this is a modifying agreement and not the original document?

Thanks for any help!

Are you going to actually settle early?   Thought not, just keep paying your car finance and drive your car happy in the knowledge that you are paying for it.  Good work on getting some payment holidays though.

scrappy_returns

Oldgoat31 said:

Hi everyone,

I signed up to a hire purchase agreement back in February, then in March agreed a 3 month payment holiday which has now been extended for another 3 months. I have been contacted to say that the latest modified agreement contains an error, the person on the phone said that it was currently 'unregulated' and that I wouldn't be eligible for a rebate if I were to settle early. Aside from this, all the other details like total cost, interest etc. are correct. Would this be grounds to get out of the hire purchase completely as I had signed an agreement with an error written in? Or does it not matter since this is a modifying agreement and not the original document?

Thanks for any help!

Why would they cancel the whole thing? Why would you want to?

Ectophile

That rather depends on the "error".  Have you accidentally switched from a regulated hire purchase agreement to an "unregulated" car loan?  If so, well you signed the paperwork to do it.  You can't just have the whole thing cancelled.  But you may be able to get them to switch it back to the HP contract it should have been.

Nearlyold

It sounds as if they may have accidentally used the wrong template and sent you documents for the unregulated version of their Hire Purchase  Agreement - these are intended for businesses or "High Net Worth" individuals where the latter are typically prepared to forgo the additional protections of a regulated agreement in order to obtain a lower or variable interest rate.
The main differences are - there are no VT rights and the early settlement regulations do not apply. 

I would have thought they could simply send you a further modified agreement based on the correct template to set things right.
In what way are you wanting to "get out of the agreement"?

Flight3287462

foxy-stoat said:
  Good work on getting some payment holidays though.

It's not a payment amnesty the OP will have to catch up with payments or extend the term both of which will incur extra interest.