Hire Purchase Loan For Business

[Deleted User] · 8 October 2019 at 12:51PM

MissJoanna wrote: »

@The rest of the people who commented. You have added no value whatsoever.

Well, thank you for coming anyway.

Good to know I wasted my time trying to help.

Clive_Woody · 8 October 2019 at 1:45PM

It seems very odd to me that they could set up a HP agreement on an asset you already "own", albeit part ownership with your mum. This does sound more like a secured loan (although I am not disputing what it says on your paperwork). Did you seek any legal advice when signing the agreement (apologies if you already answered this)?

I am no sure if one of the debt charities, such as Stepchange, would be able to advise (not sure if they would decline as this is a business debt). It's probably worth giving them a call, it's a free phone number.

nick74 · 8 October 2019 at 3:12PM

Clive_Woody wrote: »

It seems very odd to me that they could set up a HP agreement on an asset you already "own", albeit part ownership with your mum.

Not unheard of, some HP companies will re-finance assets a borrower already owns. A former client of mine (haulage company, having severe cashflow problems) often used to re-HP the same trucks repeatedly two or three times over the years they 'owned' them!

The sad fact is that for the OP they would have been better off arranging a payment plan with HMRC, or even just paying chunks off the CT liability when they could afford it.

MEM62 · 8 October 2019 at 3:14PM

MissJoanna wrote: »

Hindsight is 20/20.

This is true for so many things in life :-)

MissJoanna wrote: »

So you're suggesting that a company that routinely lies and sucks in vulnerable people into a deal they explicitly lie about is going to answer the phone and say, "Oh, yes, sorry for lying to you and bullying you over the phone, we really have felt very guilty about that, please accept our most sincere apologies and here's a pink cloud for you to sleep on". I think not.

I am not suggesting any of that. I am pointing out that, if you want to take your complaint to the regulator for them to investigate the lenders conduct, you have to go through the lenders complaint procedure first. Whatever their response, the door to the regulator is then open to you until once you have done this.

MissJoanna wrote: »

You are incorrect. My company accounts were correctly showing a profit from the previous year, as I have very few running costs (online services based business). What had happened was that by the time the tax bill was due, I had spent more than I should have. That's a separate issue to the validity of the tax return.

OK, clear enough.

MissJoanna wrote: »

Again, you are incorrect - it is not a loan - it's a lease agreement. This is what they lied to me about. And yes, their company name is now listed on the land registry as a lender, so while I wish you were correct about my Mum's flat not being secured against this, it is.

I'm still a little confused here. If it is a lease, what is being leased?

Andyjflet · 8 October 2019 at 4:29PM

MissJoanna wrote: »

This was signed last summer, so quite a long time ago.
How can they sell a loan that isn't a loan? It seems so cruel - the whole thing was designed to confuse and hide the reality of what they were offering.

I cant believe what I'm reading to be honest, a Limited company with you as a director and you've been stitched up with a 40 % interest loan on everything you and your mum own ? I just dont get it.

Brock_and_Roll · 8 October 2019 at 4:50PM

Having read the OPs posts several times, if the underlying question is whether the HP agreement could be in some way be invalidated, the answer is almost certainly no unless there is documentary evidence of misdoing by the lender.

DCFC79 · 8 October 2019 at 5:45PM

Deleted_User wrote: »

Well, thank you for coming anyway.

Good to know I wasted my time trying to help.

Its ever so nice to receive a reply like that from the OP.

OP you lodge a complaint then after 8 weeks you go to the ombudsman.

The_Mould · 8 October 2019 at 7:21PM

Hello there,

It is very sad to hear that you have health issues.

Financial Services Act 2012 Part 7 Offences relating to financial services

The offences are misleading statements, misleading impressions.

In your case, you were led to believe that you were entering into a loan agreement and not a HP agreement, is that correct?

At common law, fraudulent misrepresentation gives rise to a cause of action against the company and/or its agent who made the fraudulent misrepresentation so as to induce you to enter into the agreement.

Misleading statements, or information, and dishonesty used to get you to enter into the agreement also gives rise to a cause of action for damage to your economic expectations, damage in any form is sufficient to found your claim.

What does the agreement say and how did the creditor obtain security for it on your mother’s home?

As your mother’s flat is not mentioned in the agreement and does not form an asset in your business, the creditor can only obtain security on it by way of court order for a restriction against your interest only, or, if you mistakenly agreed to allow him to put a charge on your interest only, a Form K restriction.

In the circumstances of your case posted here, the way in which the agreement came about may amount to an unfair relationship under the Consumer Credit Act 1974 (as amended).

Do you have any evidence that could support your case on grounds of misleading you, fraudulent misrepresentation, dishonesty and such like conduct?

Let me know and I’ll see if there is anything I can do to help and support you with this matter.

Kind regards

The Mould

The_Mould · 8 October 2019 at 7:55PM

Here’s a few relevant sections of the CCA 1974 that may apply to your case:

Consumer Credit Act 1974 Part VII

90 Retaking of protected hire-purchase etc. goods.

(1)At any time when—
(a)the debtor is in breach of a regulated hire-purchase or a regulated conditional sale agreement relating to goods, and
(b)the debtor has paid to the creditor one-third or more of the total price of the goods, and
(c)the property in the goods remains in the creditor,

the creditor is not entitled to recover possession of the goods from the debtor except on an order of the court.

91 Consequences of breach of s. 90.

If goods are recovered by the creditor in contravention of section 90—
(a)the regulated agreement, if not previous terminated, shall terminate, and
(b)the debtor shall be released from all liability under the agreement, and shall be entitled to recover from the creditor all sums paid by the debtor under the agreement.

92 Recovery of possession of goods or land.

(1)Except under an order of the court, the creditor or owner shall not be entitled to enter any premises to take possession of goods subject to a regulated hire-purchase agreement, regulated conditional sale agreement or regulated consumer hire agreement.
(2)At any time when the debtor is in breach of a regulated conditional sale agreement relating to land, the creditor is entitled to recover possession of the land from the debtor, or any person claiming under him, on an order of the court only.
(3)An entry in contravention of subsection (1) or (2) is actionable as a breach of statutory duty.

So, if you do find yourself in breach of the agreement, the creditor cannot take any of the goods without obtaining a court order, if the creditor does take any goods without a court order the agreement is terminated and you are released from any and all liability.

In what capacity did you sign the agreement?

Would like to know more details about your case please.

Thank you.

Kind regards

The Mould

nick74 · 9 October 2019 at 8:49AM

The_Mould wrote: »

Here’s a few relevant sections of the CCA 1974 that may apply to your case:

Consumer Credit Act 1974 Part VII

As this is a loan/hp agreement to a limited company would the Consumer Credit Act apply here? Normally lending to limited companies is not regulated under the CCA.

Hire Purchase Loan For Business

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