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Hi All
There as been something very similar posted recently but I could not get the answer I was looking for from the post.
What I am looking for today is, who is in the right the consumer or finance company?
The Detail
PCP Hire Purchase Agreement
48 months
Monthly payment £235.40. This is ONE MONTHLY DIRECT DEBIT payment not TWO, but on the agreement it is broke down as follows - £224.65 for the goods (Column 1 below) and £10.95 for the GAP (Column 2 below) giving a total of £235.40.
The agreement is made up of 3 columns -Column 1 - Goods, Column 2 - Insurance/warranty/Gap/Other, Column 3 - Total
The total amount payable for each of these columns is including all charges and interest is -
Column 1 - £20,465.99
Column 2 - £838.81
Column 3 - £21,304.80
Advanced payment or deposit is £2,934.00
38 monthly payments made @ £235.40 = £8,945.20 + the above deposit of £2,934.00 = £11,879.20 total paid. In the below 'Termination: your rights' clause in bold it details the figure required to qualify for voluntary termination. The maths shows there has been £1,646.20 over payment to the required half of the total agreement figure of £10,233.00 to qualify for termination.
TERMINATION: YOUR RIGHTS.
You have a right to end this agreement. To do so, you should write to the person you make payments to. They will then be entitled to the return of the goods and to half the total amount payable this agreement, that is £10,233.00. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, YOU WILL NOT HAVE TO PAY ANY MORE.
The finance company have agreed the termination but are asking for settlement of £425.00 for the GAP / service agreement portion of the agreement.
Legally s this correct?
They seem to be only using the total in column 1 to apply the half rule and not the total including column 2 which is the GAP.
The terminate clause on the agreement says 'TOTAL' so this should mean everything detailed on said agreement?
There as been something very similar posted recently but I could not get the answer I was looking for from the post.
What I am looking for today is, who is in the right the consumer or finance company?
The Detail
PCP Hire Purchase Agreement
48 months
Monthly payment £235.40. This is ONE MONTHLY DIRECT DEBIT payment not TWO, but on the agreement it is broke down as follows - £224.65 for the goods (Column 1 below) and £10.95 for the GAP (Column 2 below) giving a total of £235.40.
The agreement is made up of 3 columns -Column 1 - Goods, Column 2 - Insurance/warranty/Gap/Other, Column 3 - Total
The total amount payable for each of these columns is including all charges and interest is -
Column 1 - £20,465.99
Column 2 - £838.81
Column 3 - £21,304.80
Advanced payment or deposit is £2,934.00
38 monthly payments made @ £235.40 = £8,945.20 + the above deposit of £2,934.00 = £11,879.20 total paid. In the below 'Termination: your rights' clause in bold it details the figure required to qualify for voluntary termination. The maths shows there has been £1,646.20 over payment to the required half of the total agreement figure of £10,233.00 to qualify for termination.
TERMINATION: YOUR RIGHTS.
You have a right to end this agreement. To do so, you should write to the person you make payments to. They will then be entitled to the return of the goods and to half the total amount payable this agreement, that is £10,233.00. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, YOU WILL NOT HAVE TO PAY ANY MORE.
The finance company have agreed the termination but are asking for settlement of £425.00 for the GAP / service agreement portion of the agreement.
Legally s this correct?
They seem to be only using the total in column 1 to apply the half rule and not the total including column 2 which is the GAP.
The terminate clause on the agreement says 'TOTAL' so this should mean everything detailed on said agreement?
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