Lease Finance Hire Agreement Help Please

[jetli]

Hi All

Does anyone understand about a Lease Finance Hire Agreement? Voluntary handed vehicle back and they are chasing me for the shortfall of £3000 odd. Agreement was terminated over a year ago. Does the bit about paying a certain amount still stand? Agreement was ment to finish this month originally handed back vehicle in december. Had no inspection report and no figures from auction?

 

Any help or advice would be greatly received

[rebel11]

Hi jet

 

The guys will be happy to advise as soon as they are available.

[raydetinu]

does the agreement say it is regulated under the CCA?

if so you can VT when you have paid 50% back, excluding any amounts for ppi or insurance.

any shortfall may be due to that, and that you not reached the 50%.

[jetli]

Yes it is regulated but please remember it is a Lease Finance Hire agreement not a hire purchase so does this still apply?

[raydetinu]

I believe so.

[jetli]

Please can someone 2nd this then I can take action?

 

There is nowhere about if I have paid so nd so on agreement but as said it is regulated. Basically hire agreement was for £18,000,00 and we have paid £14,000,00 after they auctioned vehicle they are chasing for £3,100 ish?

[jetli]

Really need help here guys and girls. got so much info on house repossesion and charging orders! just need help with this little one! Credit cards blah blah done with you all, so stuck on this one.

[raydetinu]

Ok can confirm that if the agreement is regulated then you can hand back( VT ) and terminate the agreement and owe nothing more providing you have paid 50% of the total amount of the loan, excluding any amounts paid for insurance ppi etc.

can you confirm loan amount and what you have paid to date.

[jetli]

Rough Figures are £20,000 and after the van was auctioned we would have paid £17,000

[raydetinu]

Ok, as soon as you VT; in writing: no more payments should of been made, if you did or they took any, that must be refunded.

The loan document must state that it is regulated under CCA. so you should owe nothing more.

suggest you write or email ( no phone calls ) and state the fact you have paid more than 50% so owe no more under the CCA.

[jetli]

Ok will try and do that and if I still have no joy I will pop back on here!

 

Thanks for your help:-)

[Gaston Grimsdyke]

The VT provisions only apply to consumer credit agreements. Sounds like what you actually have is a consumer hire agreement, in which case VT is irrelevant. What does it say at the top of your agreement - does it say "consumer hire agreement regulated by the Consumer Credit Act 1974"? If what you have is a finance lease agreement, then your liability is correct i.e. balance of agreement less sale proceeds of vehicle.

[raydetinu]

Nope, if it is regulated under the CCA then you can VT. lease hire/purchase, ppc any.

but it has to be regulated. and should say that on the agreement.

in fact that applies to any goods that are purchased under a regulated agreement.

[Gaston Grimsdyke]

No you can't. You can only VT on a conditional sale or hp agreement. You cannot VT on a hire agreement, such as a finance lease.

[raydetinu]

CCA applies to ALL credit/hire/lease/ pcp agreements for cars goods anything which an individual buys on credit.

There are exceptions but usaually confined to mortgage/land/commercial dealings.

suggest you actually read the CCA gaston or at least the OFT gudelines.

[Gaston Grimsdyke]

I'm not saying hire agreements aren't regulated, I'm saying the VT provisions don't apply to them. No need for me to go off and read the CCA, I'm familiar with it thanks. Instead, why don't you go off and read the VT provisions that are contained in section 99(1) and then come back on here and post what you find?

[raydetinu]

you vt anything once you have paid 50% of the loan.

[Gaston Grimsdyke]

And your source for that is? Did you actually bother to look up section 99?

[raydetinu]

Suggest you read section 100 as well:

http://www.legislation.gov.uk/ukpga/1974/39/section/100

[Gaston Grimsdyke]

Have you read the first few words of that section? Where does it say "hire agreement"?

[jetli]

I have not wrote yet and need to get this right so can you confirm what I need to do. It says Hire Agreement Regulated by CCA. They asked for Vehicle back as we had moved etc, we then dropped it off at a place near by and they told us to leave keys under wheel arch! No vehicle inspection report given, we had taken pictures inc the mileage. Once they had vehicle back then sent me shortfall letter. No breakdown of figures etc.

[Gaston Grimsdyke]

OK need to establish whether what you have is a finance lease or an operating lease - if the latter your liability is independent of the sale proceeds of the vehicle so it doesn't matter what they got for it. Is your agreement for a fixed term, or does it refer to a minimum rental period, primary and then secondary rentals?

[raydetinu]

Ali credit agreements that involve the eventual purcahse ( no matter what it is called ) of an item by periodic payments are covered by the CCA with a few exceptions as said before.

Also the OP confirmed it was regulated under the CCA.

whos side you on!

have not heard from OP for a bit, perhaps an update.

[jetli]

I think it states min 48 payments then a further chance to continue paying or you can hand vehicle back or sell it on and make the final payment. At work so dont have it in front of me but could post it up if you need taking out all the personal stuff

[Gaston Grimsdyke]

Ali credit agreements that involve the eventual purcahse ( no matter what it is called ) of an item by periodic payments are covered by the CCA with a few exceptions as said before.

Also the OP confirmed it was regulated under the CCA.

whos side you on!

have not heard from OP for a bit, perhaps an update.

 

That's the whole point - it is not a regulated credit agreement, it is a regulated hire agreement. How many different ways are there for me to say that? If it is a hire agreement, there is no purchase. Why is that so difficult to understand? I am not on anyone's "side", I just don't want the OP to march off down completely the wrong route as a result of bad advice given and possibly end up with an unnecessary costs liability.

 

To the OP: sounds like you have a finance lease, in which case the sale proceeds are relevant and you are right to satisfy yourself that your liability has been correctly calculated. What would help is if you could post the clause which deals with your liability on termination and we can take it from there.