Voluntary termination of a regulated hire agreement

[Guy dickins]

Am trying to clarify a particular point concerning s101 CCA, if anyone can assist?

The right to early terminate under the section applies as long as the agreement provides for the making by the hirer of payments which in total (absent breach) exceed £1500 in any year.

So, as I read this, in a three year agreement, if in year 1 the hirer is required to pay more than £1500 (by paying say three up front rentals totalling £375, and 11 further rentals in that year each of £125 (amounting in total to £1750), the right to terminate afforded by s101 will not apply. In this example of course the amount of rentals payable in each of years 2 and 3 will not exceed £1500.

That's how I read the Act, but would welcome another's view on the provision.

[Kati]

Re: Voluntary termination of a regulated hire agreement

:bump: for [MENTION=7]Tools[/MENTION]??

[R0b]

Re: Voluntary termination of a regulated hire agreement

I would argue that any up front payment is deemed as a deposit and does not form part of the monthly hire re-payments. Therefore the monthly hire payments do not exceed £1,500 for that year.

[Guy dickins]

Re: Voluntary termination of a regulated hire agreement

Hi there, the up front payment is a requirement of the agreement, so I suspect it would be included in the calculation. There doesn't seem to be a way around this.

[R0b]

Re: Voluntary termination of a regulated hire agreement

Not denying the upfront payment is part of the agreement but doesn't form part of your monthly repayments. For example,

Hire agreement total cost = 2000
Less upfront cost = 1700
Term is 24 months/1700
Monthly hire repayments = 70.83

So my point is that any upfront payment/deposit would not form part of the 1500 for the purposes of s101.