CCA 1974 Exclusions

[ventra]

Hi Everyone.

I have a question! Hopefully someone can help. Here goes:

If an agreement is headed:

"Minimum Term Service Rental Agreement Regulated by the Consumer Credit Act 1974"

and is for over £25000, is it legal and enforcable?

Also, if it is OK, what, if any are the regulations applicable to it?

I notice agreements over £25000 signed prior to the CCA Amendment 2006 are not covered by the CCA 1974.

Thanks in anticipation

Bill

[LuggerBugs]

Re: CCA 1974 Exclusions

You are correct... 2006 amendments took away the £25K limit.

Is there anything else that would have taken it over the limit? Mis-sold PPI for instance?

I assume this is a pre-April 2007 agreement then. Any chance of a squint anyway? Without seeing it, there's not much chance of offering any helful advice.

[Curlyben]

Re: CCA 1974 Exclusions

Really depends.
If the 25k is the TOTAL of the loan including PPI, interest, fees etc then it is still covered by CCA.
Also it really depends on how this amount was arrived at.
More details would be helpful.

[ventra]

Re: CCA 1974 Exclusions

Thanks for rapid responses:

Period is 60 months, payments are £1500+Vat every quarter. NO interest is mentioned.

Bill

[Curlyben]

Re: CCA 1974 Exclusions

What's the actual breakdown on the agreement ?
Also what was this for, company, private, etc..

[LuggerBugs]

Re: CCA 1974 Exclusions

A no interest loan? I want one of those.

[ventra]

Re: CCA 1974 Exclusions

Guys

This is for a rental agreement of equipment and service in a Franchise, wholly separate from a Franchise Agreement, and according to the Creditor is down to the individual that signed it.

I am just trying to find out whether the Creditor was obliged to follow a prescribed procedure and if he hasn't, it can be deemed unenforcable?

[ventra]

Re: CCA 1974 Exclusions

What's the actual breakdown on the agreement ?
Also what was this for, company, private, etc..

Its this:

*** Service Rental Agreement
Minimum Term Service Rental Agreement
Regulated by the Consumer Credit Act 1974

Company (“We”)

** Limited, Sales and Administration Office, PO Box ***, Chorley, Lancashire *** 6DZ

Client (“You”)

Name:

Address:

Postcode:

Contact:

Tel.No:

Fax:

E-Mail:


Area:

Supplier

*** Limited of above address

Products

Canon G6 Digital Camera, Tripod, *** Special Optical Lens, Carry Case, Instruction Guide

Terms of Service Rental

This “Exclusive Service Agreement” is for Minimum Period of 60 Months. You will pay us Service Rentals every quarter £1500 plus VAT after the initial deposit of £1500 plus VAT. We will process unlimited ******s, host and publish within 24 hours.

The Rentals can be varied if tax rates change. The Minimum Service Rental Period of this Agreement starts on the date we (a representative of *** Limited) countersign it. A notice of termination is required three months before the termination date of current contract or the Rental Contract will run for a further 6 months on the same terms.















Data Protection

By signing this Service Agreement You agree that we may make credit searches against you and obtain information about you and your business. You apply to use the Service from us on the terms and conditions above and on our website http://www.******.net and http://www.******.net/application. The information above is correct and you have approved and you agree that it is reasonable.
You agree that the equipment loaned to you has been demonstrated to your satisfaction and is complete and in good working order.
You have read and understood the terms and conditions overleaf and agree to be bound by them.


Where the signatory to this agreement signs on behalf of the customer **** Ltd has entered into this agreement in consideration for the signatory Guaranteeing the performance of the customer and signing this agreement constitutes the giving of the guarantee. As such the signatory undertakes to pay to **** Limited on the receipt of a written request any money which the customer fails to pay to **** Limited under the Agreement within 14 days after the due date of payment, on the understanding that if the goods held by the customer under the Agreement are repossessed by *** Limited whether or not in accordance with the Agreement this Guarantee shall extend only to the amounts accrued due up to the time of repossession. Nothing in this agreement obliges *** Ltd to pursue the customer first.

Signed (on behalf of the customer and as Guarantor) …………..……………….

Print Name …………………………………………………………………………………………

Location Address ……………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

Home Address …………………………………………………………………………………………

………………………………………………………………………………………………………………

………………………………………………………………………………………………………………

Dated …………..…………………………..



Signed for and on behalf of **** Limited. …………………………………………..

Print Name ……………………………………………………………………………………………

Dated ………………………………………



Sales and Administration Office **** Limited
PO Box****
Chorley
Lancashire ****

Telephone **

Fax **

Person who has instigated this Service Rental Agreement

******

Mobile: 0**




The Agreement and Delivery
1 We are letting and you are taking on the loan of the Equipment for use in your business on the terms set out above.
2 The 60 Month Service Rental starts when we countersign it and the initial rental is due at that time.
3 All the Terms of the Service are in this Agreement and on our website and only variations signed by us both are effective.
4 You must make all arrangements to insure each set of equipment for no more than £2500.00. We will train you on the use of the equipment, the methodology on how to capture the ***, transfer the taken images on to your local computer and onward transfer to us for processing. You must impart all information as to your web masters with all relevant contact details so as to ensure our effectiveness. At no time does the ownership of the equipment pass over to you. We cover the warranty of the equipment and if any damage may happen to the equipment, the insurance cover you have will come into force.

Payments
1 It is an essential term of this Service Rental Agreement that you pay to us all the Quarterly Rentals on the due date in full and without retention by you via a Standing Order Mandate or Direct Debit. VAT at the applicable prevailing rate must also be paid by you. All amounts payable by you under this Service Rental Agreement must be made without any deduction, withholding, set-off counterclaim or appropriation. We will invoice you on a quarterly basis at the agreed fee for all services included within the Service Rental.
2 Under this Agreement, the signatory on this legal document/agreement agrees to be the Guarantor for the transaction either personally or on behalf of the company that the signatory represents and therefore the total amount of this Service Rental. If you/the company fails to pay any sums on the due date You must pay interest on all those unpaid sums at 6% above Bank of England Base Rate from the due date until we receive it and before and after judgment.
3 We reserve the right to withdraw the service from you immediately any sums due to us are unpaid and we are not liable for any losses that you may incur as a result thereof.
4 You are responsible for all charges, even if you have asked someone else to be responsible for them.
5 You agree that throughout the term not to set-off for any reason any money payable by you to us under this agreement.

Using the Products
1 You are responsible for keeping the Equipment in good condition at your own cost. All damage, other than fair wear and tear, must be made good. All replacement and attached parts become part of the Equipment and ours. We will offer maintenance and repair on the equipment at all times. We must be notified immediately if an equipment problem occurs and if need be the Insurance will come into force and a claim made.
2 You will have to pay for reasonable costs of repair if:
We have to pay extra costs to return the equipment to its condition when the equipment was rented to you, fair wear and tear excepted, for example, if lenses are damaged or pieces of equipment are missing.
3 You must keep the Equipment safe and use them in accordance with law and the Our recommendations, and only for the purpose for which they are designed, or built, or are suitable.
4 You must keep the equipment in your possession at the Location, except when it is in use. You must not deal with the equipment or transfer or assign them or any part of them. You must not hold yourself out as the owner of the Equipment; nor may you claim capital allowances.
5 If you fail to return the equipment at the end of the agreement or when we are entitled to a return of the equipment because of your breach and we suffer loss as a result you agree that you will compensate us for our losses and costs incurred in seeking a return of the equipment and compensation for loss arising will be paid by you on the indemnity basis.

Insurance
1 You must at all times keep the equipment insured under a comprehensive policy without restriction or excess, for an amount equal to its replacement value (£2500.00 per set), and you must note on the policy that the equipment is ours. If we request You must show Us evidence of the policy, and if there is no policy We may insure the equipment at your cost and collect the full cost from you along with the Service Rentals.
2 If an insurance claim has to be made you will notify us of that and you agree that we will take over the negotiations with the insurance company, and settle any claim, and We will receive any insurance payments relating to the equipment. If you receive any such insurance proceeds you must forthwith remit such monies received to us and until such time shall hold such monies on trust for us.
3 Any insurance proceeds for the equipment, including total loss, at our discretion may be put towards repair or replacing the equipment, or the payments due to Us.



If you are an individual we may at our election end this agreement straight away if we find out that your belongings have been taken away from you to pay off your debts, or a Bankruptcy Order, or receiving order has been made against you or you have entered into an Individual Voluntary Arrangement or informal arrangement with your creditors.
If you are a company, we will end this agreement straight away if:
• you go into liquidation;
• you call a meeting of creditors;
• we find out that your goods have been taken away from you until you pay off your debts.

In either case we may end this agreement if you do not meet any of the conditions of this agreement.

If we end this agreement it will not affect our right to recover any money that we are owed under this agreement. We can also claim reasonable costs from you if you do not meet any of the conditions of this agreement. We can repossess the equipment (and charge you a reasonable amount).

No amendment or variation
No amendment or variation to this agreement shall take effect unless it is in writing, signed by authorised representatives of each of the Parties.

Contracts (Rights of Third Parties) Act 1999
For the purposes of the Contracts (Rights of Third Parties) Act 1999 and notwithstanding any other provision of this Agreement or any collateral guarantee this Agreement is not intended to, and does not, give any person who is not a party to it any right to enforce any of its provisions.

Joint and several liability.
Where any party comprises more than one person the obligations and liabilities of that party under this agreement shall be the joint and several obligations of those persons.

Entire Agreement.
This agreement contains the whole agreement between the Parties and supersedes any prior written or oral agreement between them and the parties confirm that they have not entered into this agreement on the basis of any representations that are not expressly incorporated in this agreement.

Severance and invalidity
If any provision of this agreement is prohibited by law or judged by a court to be unlawful, void or unenforceable, the provision shall, to the extent required, be severed from this agreement and rendered ineffective as far as possible without modifying the remaining provisions of the agreement, and shall not in any way affect any other circumstances of or the validity or enforcement of this agreement.

Arbitration.
Any dispute under or arising out of this agreement (except for sums due to *** Limited and recovery of the equipment, which shall be dealt with by the English and Welsh Courts) shall be referred to a single Arbitrator in accordance with the provisions of the Arbitration Act 1996.

Governing law
This agreement is governed by the laws of England and Wales. Any dispute under or connected with this agreement shall be subject to the exclusive jurisdiction of the English and Welsh Courts to the parties to this agreement hereby submit.


What do you think?