Ive Never Seen Anything Like It - HELP

[BEAGLESROCK]

Hi All,

My cousin is a private hire taxi driver, last year he wanted to upgrade his vehicle, I did some homework and told him he would be looking at between £6000 - £7000.

With cash and possible part exchange he would have a shortfall of £4000.

He knew of a chap who rented private hire taxis, but also lent drivers money ( up to £4000 max) So, he spoke with him and it was agreed that when he had found the right car, funds would be made available.

So, the right car was found, we agreed to take the car and pay the following day. So, the next day my cousin went along to pick up the £4000 and was given a contract ( basically told sign here ). I went with him to get the car, he was given £1000 as p/x, handed over £1450 of his own money and the £4000 from the loan. All the docs were filled in (V5C ) and that was that.....or so I thought.

I was having a chat to him yesterday and to cut a long story short, I had a look at his 'Credit Agreement' see link below

http://s1123.photobucket.com/albums/...jo24/CONTRACT/

Well, I was dumbfounded...

He put £2450 in to that deal and the money borrowed was £4000
We found the car etc

So, can anyone explain the legalities of the contract please

Also, he was not given a payment book and has no receipts for what he has paid.
He has not been given any info regarding his insurance policy

What a palava

Thanks for your advice

[BEAGLESROCK]

Re: Ive Never Seen Anything Like It - HELP

Hi All,

My cousin is a private hire taxi driver, last year he wanted to upgrade his vehicle, I did some homework and told him he would be looking at between £6000 - £7000.

With cash and possible part exchange he would have a shortfall of £4000.

He knew of a chap who rented private hire taxis, but also lent drivers money ( up to £4000 max) So, he spoke with him and it was agreed that when he had found the right car, funds would be made available.

So, the right car was found, we agreed to take the car and pay the following day. So, the next day my cousin went along to pick up the £4000 and was given a contract ( basically told sign here ). I went with him to get the car, he was given £1000 as p/x, handed over £1450 of his own money and the £4000 from the loan. All the docs were filled in (V5C ) and that was that.....or so I thought.

I was having a chat to him yesterday and to cut a long story short, I had a look at his 'Credit Agreement' see link below

http://s1123.photobucket.com/albums/...jo24/CONTRACT/

Well, I was dumbfounded...

He put £2450 in to that deal and the money borrowed was £4000
We found the car etc

So, can anyone explain the legalities of the contract please

Also, he was not given a payment book and has no receipts for what he has paid.
He has not been given any info regarding his insurance policy

What a palava

Thanks for your advice

BTW, the lender took the V5C but my cousin has a 'proof of purchase receipt'

Thanks again

[Sparkie1723]

Re: Ive Never Seen Anything Like It - HELP

The basic facts about this ...is this would be considered a consumer credit agreement solely or partly used for business purposes and because it is under £25,000 it would come under the remit and regulation of the Consumer Credit Act 1974 and its 2006 ammendments.......

The Act describes what a consumer credit agreement is ...an agreement between a debtor(borrower) and a creditor ( lender) .......to lend money you have to have a consumer credit licence issued by the OFT ....( i.e Money lenders are are good example)..
If you lend money or enter in to agreements such as this the lender must covered by the law

First check to see if this lender has a CCA licenece...............if not ( and from the form and content of this agreement I would chance a bet he/she/they have not been issued with one)........if this is the case, then the lender has committed an offence and the agreement is void, the lender would be in serious trouble.

Check out section 21 and section 39 of the Consumer Credit Act....it explains exactly what I have said.

Sparkie

This is my personal view and not legal advice as such ....make your own mind up from this information.

[BEAGLESROCK]

Re: Ive Never Seen Anything Like It - HELP

Hi Sparkie,

Yes he does have a licence, and on the companies house database his business is Rental of Cars, and how can he 'SELL' a vehicle that he has never owned ??

Thanks

[Sparkie1723]

Re: Ive Never Seen Anything Like It - HELP

Hi Sparkie,

Yes he does have a licence, and on the companies house database his business is Rental of Cars, and how can he 'SELL' a vehicle that he has never owned ??

Thanks

What category licence does he hold?

This is where the loan agreement can be challenged .........he is not selling the car .........he is lending the money for the purchase of the car....so he cannot be the seller.......This would be a Creditor-Debtor-Supplier restricted use CCA agreement within the meaning of the Act and should be designated so on the top of the agreement.........and if this is the case it would be unenforceable IMO.

But that is only my opinion.......it is worth a free consultation with a good solicitor

Sparkie

[BEAGLESROCK]

Re: Ive Never Seen Anything Like It - HELP

Cheers Sparkie,

I thoght that too...im glad you see it that way as well

Thanks