Written by John Kruse, one of the leading experts on Bailiff Law, this consumer friendly guide is essential reading for anyone who comes into contact with a bailiff.
The book is easy to understand and clearly explains the rights
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I have just received my Black Horse HP agreement in the post after purchasing a car from a dealer on new years eve. I put down 5k on the car and took the rest (£11,700) on HP. I was told at the time that I could pay lump sums every month (I intend to pay £1000 a month) or pay the HP off in full with just 2 months interest charges as a penalty by the salesman. However I've just read the agreement and it says nothing about paying lump sums or paying off the agreement. It seems like I’m stuck with 60 monthly payments. This is not what I was told when I agreed to the terms. I'd appreciate it if someone could advise if I can pay the HP off, adjust the payments or even cancel it under some sort of cooling period. Any help is greatly appreciated.
Your entitled to settle the balance at any time just ask them for a settlement figure which they will calcualte, pay it then the car is yours.
[FONT='Verdana','sans-serif']Thnx for the reply, will I have to pay an early repayment charge that is ridiculously high? Id also like to know if these HP terms allow lump sum payments every month?[/FONT]
I work with car finance in my job and as far as i am aware no car finance will allow you to pay off higher amount each month to reduce the term. jamesx81x is right in saying that you can reuest a settlement figure at any time and clear the finance off, however car finance companies work in different ways when it comes to calculating the interest, some charge huge amounts of interest and some charge a couple of months interest. I would suggest that you request from the finance company a settlement figure in writing. When you receive it, it should contain 3 figures; The amount of finance outstanding, the interest rebate and the amount to settle the agreement. Hopefully the car salesman was right in what he told you, however if you feel you have been mis-lead by the car company then you need to take up your concerns with the finance director / business manager of the company, he will be regulated by the FSA and and therfore bound by there rules. Hope this helps
sorry, one more thing, speak to the finance company ASAP as you may have a 14 day cancellation right. dont let them fob you off, whatever they say to you, request it in writing as again they are bound by the FSA.
thanks guys, you have been a great help, i've requested the settlement difure and its only £260 so looks like its not as bad as i first thought. Going to try and get hold of them on Monday when they are open to see if I can increase payments, just incase they wil allow it. Thanks again guys
Black Horse Hire-Purchase agreement
charges as a penalty by the salesman. However I've just read the agreement and it says nothing about paying lump sums or paying off the agreement. It seems like I’m stuck with 60 monthly payments. This is not what I was told when I agreed to the terms. I'd appreciate it if someone could advise if I can pay the HP off, adjust the payments or even cancel it under some sort of cooling period. Any help is greatly appreciated.
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Originally Posted by Jamesx81x
