Help! Hippo Car Leasing trying to charge me £600 for cancelling

rebeccaleese258

Hi guys! 

I need a bit of help/advice. I took out a new car lease contract on Friday via the internet with Hippo Car Leasing. I paid £240 documentation fee and I signed the contacts. However I had a change of heart and over the weekend I decided it was too big of a commitment so on the Sunday I emailed them saying I wish to cancel the order, so only two days after signing the contract. However they are now saying I need to pay £600 cancellation fee and it does state this on the contact I signed however I only signed the contract two days prior. They are saying the 14 day cooling off period only exists with the finance company and this £600 charge is for them to cancel the car order. So essentially it’s costing me £840 with the documentation fee. Surely this can’t be right? Everything was done via the internet. 

CliveOfIndia

These cancellation fees are, as you say, clearly laid out in the terms & conditions which you agreed to.  Unfortunately you will have to pay the fees.

Grumpy_chap

https://www.which.co.uk/consumer-rights/regulation/consumer-contracts-regulations-ajWHC8m21cAk#cancelling-goods-and-services

I think the CCR 14 days to cancel as per above, assuming that the lease company had not started providing the service.  Assume the car was not delivered, which is what I would consider to be providing the service.  CCR would trump the terms and conditions, assuming this was a personal lease

Edit:. This might receive helpful information if moved to the Consumer Rights board.

Grumpy_chap

rebeccaleese258 said:

Hi guys! 

I need a bit of help/advice. I took out a new car lease contract on Friday via the internet with Hippo Car Leasing. I paid £240 documentation fee and I signed the contacts. However I had a change of heart and over the weekend I decided it was too big of a commitment so on the Sunday I emailed them saying I wish to cancel the order, so only two days after signing the contract. However they are now saying I need to pay £600 cancellation fee and it does state this on the contact I signed however I only signed the contract two days prior. They are saying the 14 day cooling off period only exists with the finance company and this £600 charge is for them to cancel the car order. So essentially it’s costing me £840 with the documentation fee. Surely this can’t be right? Everything was done via the internet. 

I have looked a bit further at the CCR, which I was certain should apply.
By reference to the Hippo Leasing T's&C's, it would seem that who ever the OP spoke with referenced clause 4 (Cancellation / Withdrawal).
The OP should refer the contact at Hippo to clause 12 (Distance and Off-Premises Sales).  This allows for the 14-days as specified in the CCR.
https://www.hippoleasing.co.uk/terms-of-business/

Hope that helps.

DullGreyGuy

Grumpy_chap said:

rebeccaleese258 said:

Hi guys! 

I need a bit of help/advice. I took out a new car lease contract on Friday via the internet with Hippo Car Leasing. I paid £240 documentation fee and I signed the contacts. However I had a change of heart and over the weekend I decided it was too big of a commitment so on the Sunday I emailed them saying I wish to cancel the order, so only two days after signing the contract. However they are now saying I need to pay £600 cancellation fee and it does state this on the contact I signed however I only signed the contract two days prior. They are saying the 14 day cooling off period only exists with the finance company and this £600 charge is for them to cancel the car order. So essentially it’s costing me £840 with the documentation fee. Surely this can’t be right? Everything was done via the internet. 

I have looked a bit further at the CCR, which I was certain should apply.
By reference to the Hippo Leasing T's&C's, it would seem that who ever the OP spoke with referenced clause 4 (Cancellation / Withdrawal).
The OP should refer the contact at Hippo to clause 12 (Distance and Off-Premises Sales).  This allows for the 14-days as specified in the CCR.
https://www.hippoleasing.co.uk/terms-of-business/

Hope that helps.

Have to admit that I've not responded as there needs to be more clarity on who's doing what etc.

Leasing a vehicle is a service not the purchase of a product. As such 14 day cooling off period is somewhat tempered by the fact that they can charge for the service provided prior to the cancellation as long as the buyer requests/agrees to the servicing starting straight away.

So in this case Hippo Car Leasing is a credit broker... it sounds like they did 100% of that service before the OP cancelled. I've no idea who sources the vehicle itself to have any idea if any consideration would be required for that aspect or not etc.

The ultimate answer is that its not as clear cut as buying a TV online and as ever you should be getting comfortable with the transaction before committing rather than after.

Grumpy_chap

DullGreyGuy said:

Leasing a vehicle is a service not the purchase of a product. 

I gave consideration to the "service" aspect in my first response.
I also consider the timescales.  The OP states:

rebeccaleese258 said:

I took out a new car lease contract on Friday via the internet
However I had a change of heart and over the weekend I decided it was too big of a commitment so on the Sunday I emailed them saying I wish to cancel the order, 

I am assuming that the car was not actually made available to the OP between whatever time on Friday the agreement was signed and whatever time on Sunday the OP cancelled.  I would consider that the "service" has only commenced once the car is delivered.

This discussion about "service" or "product" and when the "service commenced" may all be semantics, though, as the Hippo T's&C's I linked above allows for the 14-day cancellation as per CCR:


If the car had been delivered to the OP by the Sunday when the OP sought to cancel, then the above clause would apply (along with the following paragraphs around detail of the clause).

If the car had not been delivered to the OP by the Sunday when the OP sought to cancel, it would be madness for the supplier to say the cancellation under this clause can only be "within 14 days of taking delivery" as that would mean delivering (and registering) the car to the OP and then having all the faff of the car being returned.  It is more attractive to the lease company to have a brand new car than a 1-previous owner car.  I understand that sometimes lease cars are not registered to the user, but the subsequent clauses make specific reference to returning the V5, so this suggest the car would be indicated to the leasee as RK.

Key to this is that the car is a private consumer lease and not a business agreement, also as I referenced in my first response.

I note that the OP has not been active since yesterday afternoon before I posted my response so I hope the OP returns to see these comments and has not relied only upon the first response indicating the charges are due.

DullGreyGuy

A right to cancel isnt the same as a fee free right to cancel. 12a acknowledges your right to cancel but 4a states that if you do cancel:

4. Cancellation / Withdrawal:

a. Charges: In the event that you wish to cancel or withdraw from the Agreement for any reason other than those stated in clauses (3.b.), (6.b.i) or (11.d.), Hippo Vehicle Solutions Ltd reserve the right to charge a cancellation fee of up to £600.00 and withhold any deposit for services provided by Hippo Vehicle Solutions ltd; services might include, but are not restricted too, removal of a vehicle on sale for a period of time, production of paperwork, preparation of the cancelled vehicle or processing of documents. Any costs incurred by debt collection agents in the course of collection of this sum will also be payable. If for any reason the specified vehicle is not delivered, If you fail to take and pay for the Vehicle within 14 days of notification that the Vehicle is ready for delivery, we will treat the Agreement as cancelled and any deposit paid by you will not be refunded. This does not prejudice our right to recover from you by way of damages any loss or expense we may incur as a result of you cancelling.

Once the cancellation window has closed there simply is no contractual way to cancel the contract.

They are not the lease provider, they are a broker and so have provided their service which is to arrange the finance. Its not clear who the supplier of the vehicle is but clearly some aspect of the service has commenced even before receipt of the vehicle.

the_lunatic_is_in_my_head

DullGreyGuy said:

A right to cancel isnt the same as a fee free right to cancel. 12a acknowledges your right to cancel but 4a states that if you do cancel:

4. Cancellation / Withdrawal:

a. Charges: In the event that you wish to cancel or withdraw from the Agreement for any reason other than those stated in clauses (3.b.), (6.b.i) or (11.d.), Hippo Vehicle Solutions Ltd reserve the right to charge a cancellation fee of up to £600.00 and withhold any deposit for services provided by Hippo Vehicle Solutions ltd; services might include, but are not restricted too, removal of a vehicle on sale for a period of time, production of paperwork, preparation of the cancelled vehicle or processing of documents. Any costs incurred by debt collection agents in the course of collection of this sum will also be payable. If for any reason the specified vehicle is not delivered, If you fail to take and pay for the Vehicle within 14 days of notification that the Vehicle is ready for delivery, we will treat the Agreement as cancelled and any deposit paid by you will not be refunded. This does not prejudice our right to recover from you by way of damages any loss or expense we may incur as a result of you cancelling.

Once the cancellation window has closed there simply is no contractual way to cancel the contract.

They are not the lease provider, they are a broker and so have provided their service which is to arrange the finance. Its not clear who the supplier of the vehicle is but clearly some aspect of the service has commenced even before receipt of the vehicle.

Interesting they are charging the OP exactly £600. 

OP DGG is correct in terms of you having to pay for any aspect of the service received, it would be worth asking for a breakdown of the £600 figure to show exactly what it is for and see what they say,  with a bit of resistance they might lower the fee. 

Grumpy_chap

DullGreyGuy said:

A right to cancel isnt the same as a fee free right to cancel. 12a acknowledges your right to cancel but 4a states that if you do cancel:

Agreed, but I think if clause 12 is read in it's entirety, this is a full refund ("reimbursement") less costs of returning the car (presumably nil if the car has not been delivered) and adjusted for the diminished value of handling the vehicle (again, presumably nil if the car has not been delivered).

It is clear that this clause 12 is written to comply with the CCR.

If I were the OP, I would be drawing attention to the clause 12 and stating that there is no cancellation fee applicable.

I thing the failure to reference clause 12 under clause 4 is an error.  It looks like Hippo had a set of T's&C's and then simply added the clause 12 at the end when the CCR came about.

Looking at the Which? guide, the refund should be full under CCR.  CCR is legislation so trumps any T's&C's about a cancellation fee of £600 (or whatever):
https://www.which.co.uk/consumer-rights/regulation/consumer-contracts-regulations-ajWHC8m21cAk

the_lunatic_is_in_my_head

DGG is referring to 

https://www.legislation.gov.uk/uksi/2013/3134/regulation/36

(4) Where the service is supplied in response to a request in accordance with paragraph (1), the consumer must (subject to paragraph (6)) pay to the trader an amount—

(a)for the supply of the service for the period for which it is supplied, ending with the time when the trader is informed of the consumer's decision to cancel the contract, in accordance with regulation 32(2), and

(b)which is in proportion to what has been supplied, in comparison with the full coverage of the contract.

And is saying Hippo isn't a car leasing company but an agent setting up the contract and so can charge for their aspect of the service in the event of cancellation. 

I don't know enough about what the OP has purchased to say if that understanding is correct or not  

Grumpy_chap

the_lunatic_is_in_my_head said:

DGG is referring to 

https://www.legislation.gov.uk/uksi/2013/3134/regulation/36

(4) Where the service is supplied in response to a request in accordance with paragraph (1), the consumer must (subject to paragraph (6)) pay to the trader an amount—

(a)for the supply of the service for the period for which it is supplied, ending with the time when the trader is informed of the consumer's decision to cancel the contract, in accordance with regulation 32(2), and

(b)which is in proportion to what has been supplied, in comparison with the full coverage of the contract.

And is saying Hippo isn't a car leasing company but an agent setting up the contract and so can charge for their aspect of the service in the event of cancellation. 

I don't know enough about what the OP has purchased to say if that understanding is correct or not  

I would remain of the view that Hippo had not provided any service up to the point where the OP cancelled and the £600 charge does not apply.

Particularly as the OP states they already paid a £240 "documentation fee".

The OP only placed the order on Friday and cancelled on Sunday.  How much more working time was there for Hippo to provide any service?  It would be beholden upon Hippo to positively demonstrate if they had provided any service and the value of that.