Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

[Guest]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Hi, So I have managed to speak to the broker specifically about this point. He has said they are primarily a commercial lender who lend to Ltd's and self employed people. He has said that they have not asked for any business accounts or have mentioned the company in any of the documentation. He insists that the loan is with me personally.

So now I have that information i'm going to call the OFT.

Yes, I have been looking around and there are quite a few incidents regarding these lenders, so hopeful they will have a case file.

D

[Guest]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Just a thought that may or not be appropriate.
Since you employed the services of a broker he would owe you a fiduciary duty and may be liable if you uncured any losses or at least the return of his fee.

But lets hope the OFT will sort it out.

D

[Naim]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

I've spoken to the OFT who weren't very helpful. They put me onto the Financial Ombudsmen who have asked me to find out more about the agreement and namely if the company have a CCA license. I'm now going to ring the OFT back and ask them to go through this again.

[Naim]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Ok so OFT have now just sent me to the Consumer Credit Service and the Money Advice Counsel :tinysmile_cry_t: I shall give them a call..

[Naim]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Ok so consumer credit council have just said that it should be regulated, if it's not then you need to seek legal advice or pay them what they want..

[Guest]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

If you have a cash sum available it may be an idea to send a offer of full and final settlement directly to the creditor, explain the circumstances and that you are not in fact a business and that you are otherwise willing to contest the figure the quoted.
Perhaps a bit under what you can afford to give you some room for maneuver should they come back with a counter offer
You never know

D

[Naim]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

The broker has said to me that they are willing to look at a deal if you finance another car through them.. I've just said i'll think about it if the following terms are met:

• The APR is significantly lower as my credit score is now back to normal
• The deal is regulated

In regards to the settlement – on a regulated deal the settlement would be £25,368.83. If I have to then I am prepared to offer them a further 9 months worth of interest totaling £2, 174.86; so a final settlement figure of £27,534.69. This means I’d have paid back £ 4,348.54in capital and interest payments to date plus a further £2, 174.86 as a goodwill gesture – I think that's more than fair.

If none of these are met then i think i'll take legal advice and see what happens.

[teaboy2]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

If they have no credit license then they are not in a position to offer you an other HP agreement or loan etc. The fact they are, seems like a ploy to silence you by making you happy whilst they still make money from you.

You should seek immediate legal advice. As they can not even claim you took it out as a business, unless you actually have a business and the business or trading name is clearly visible on the agreement as the debtor.

[Guest]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

The broker has said to me that they are willing to look at a deal if you finance another car through them.. I've just said i'll think about it if the following terms are met:

• The APR is significantly lower as my credit score is now back to normal
• The deal is regulated

In regards to the settlement – on a regulated deal the settlement would be £25,368.83. If I have to then I am prepared to offer them a further 9 months worth of interest totaling £2, 174.86; so a final settlement figure of £27,534.69. This means I’d have paid back £ 4,348.54in capital and interest payments to date plus a further £2, 174.86 as a goodwill gesture – I think that's more than fair.

If none of these are met then i think i'll take legal advice and see what happens.

Did you use the CCA early settlement calculator to arrive at the sum you stated?
I think that this is a plan, you have the problem of the disclaimer on the agreement which may be a hurdle, if it went to court.

Good luck

D

[Naim]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Hiya,

I used the settlement calculator from http://www.financecalcs.co.uk/Calcs/Settlement.php

From their website: This program will calculate the Settlement figure of any loan using the Actuarial method, as required by the (Early Settlement) Regulations 2004 in the UK. This formula assumes all payment are made on time.

I am going to see a solicitor about this Tuesday as well just so I can be clear on everything discussed.

[Sparkie1723]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Hi Naim,
This is taken from OFT Booklet 147 on licensing.

Sparkie
Unlicensed trading is punishable by a fine, imprisonment, or both.
In addition, if any of your customers were to default on a payment, you would not be able to enforce a credit agreement that you had made while unlicensed, or where an unlicensed credit broker was involved.

[Guest]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Hiya,

I used the settlement calculator from http://www.financecalcs.co.uk/Calcs/Settlement.php

From their website: This program will calculate the Settlement figure of any loan using the Actuarial method, as required by the (Early Settlement) Regulations 2004 in the UK. This formula assumes all payment are made on time.

I am going to see a solicitor about this Tuesday as well just so I can be clear on everything discussed.

Yes that's the one I generally use, it is quite accurate, mention about the brokers liability, see what they say, I would think that he had a duty to ensure your protection.

D

[Naim]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Quick update - They do have a CCA license under the name Private & Commercial. Apparently i 'waived my rights' when i signed the declaration on the left as it says that I will use the car for business purposes, thus making me a business.. I still can't work that one out?

I'm waiting back to hear from them about a deal apparently..

[teaboy2]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Are you registered self employed? or have a limited company? If not then your not able to use the car for business purposes since you have no buisness. Using it to go to work or for other work related tasks as an employee of another company is not business use under the definition of business purposes. The declaration can not legally make you a business if you are not registered self employed as a sole trader or as a director/owner of a limited company or partnership, as no declaration signed or not can change your legal status.

If i was you i would respond making the above clear to them, as it seems they are squirming a bit, especially as they may be about to offer you a deal. So the more preassure on them the better this apparent deal will be for you hopefully.

Looking at the agreement again, i suspect they tricked you into signing an unregulated hire purchase (preying on your lack of knowledge of law), when you had no intention to use the car for business purposes but for private use only. Seems they may have done this simply to deny you your rights under the Consumer credit act 1974. Therefore if my assumptions are correct they misrepresented the contract to you. Problem is, proving it.

[Guest]

Re: Un-regulated Car HP Agreement - Advice needed please - Massive Redemption Figure

Unfortunately the disclaimer on the agreement and the requirements of the act regarding regulation are quite plain.

D