defaults and Finance Lease agreement and Hire Agreement

[FORMISTER]

Hi Everyone,

 

Mt friend has asked me for some advice, I used to post of here in the past but as I am a little out of touch I thought it best to ask you guys.

 

He has a small business in the event industry and now the season is over in the next 4 months he is going to struggle to pay 2 agreements he has.

 

The first is a Finance Lease agreement and the second is a Hire Agreement (where you keep the goods at the end for one further payment.

 

The first one , the Finance Lease is with Armada Investments for approx 1K a month and the second the Hire Agreement with 1pm ltd for £500 a month.

 

Both agreements are guaranteed by him and his business partner as partners , not Ltd.

 

They were 3 year contracts and only have until March 2018 until they are finished.

 

He has already asked if he can take a payment holiday but been refused, they have only offered to take two payment a month instead of one- which doesnt really help the situation.

 

So , my question is , can they default after one missed payment? Which is what they threatened last month when he was late.

 

Or how many payments can he fall behind without being defaulted or goods taken back.

 

Thanks guys in advance for your advice.

[FORMISTER]

Anyone?

[dx100uk]

depends on the T&C we'd need to see both agreements.

 

if these are business to business finance deals/lease then they aren't covered by the Consumer credit act.

 

so all gloves are off sadly.

[FORMISTER]

Thanks DX,

 

The 1pm agreement definitely says regulated by the CCA 1974.

 

he can't find the other one at the moment, so thats up in the air until he gets a copy

[dx100uk]

that's good so that one is a hire purchase agreement then, is it in his business name or simply a pers loan that doesn't mention goods at all?

 

but anyway..he has protection then as he has paid more that 1/3rd so cant just repo without going to court...

I wonder if a time order would work here?

 

are these solely lease/hire and return at the end of said period or are both indicated that once paid ownership is his [poss with or without a final balloon payment] or something like that.

 

can he scan them for you to pop up to pdf?

 

read upload.

[FORMISTER]

Hi DX,

 

The items are his at the end of it.

 

I think the T&C's say if its a body corporate, or a partnership of 4 or more or the total value including VAT exceeds 25k then its not regulated. But none of these apply, its less than 25K and its two persons .

 

I've got a copy of this one, i will upload tomorrow after excluding some private information .

 

He is working on getting the other document for the other lease.

 

Thanks form your help so far

[FORMISTER]

Here is the agreement for 1Pm

1pm.pdf

[dx100uk]

cant see anything there about its his when the hire ends? with a final payment

as you said in post 1. am I blind?

[FORMISTER]

Well it was 36 monthly payments starting 15/5/15.

 

Yep , I can't see anything about final payment or keeping goods.

 

I will ask him if he has any further information.

[dx100uk]

so he is not losing anything

might just be best to hand their stuff back.

 

as I read it, it will only cost him the missed monthly to date of hand back

they cant levy penalties

they are unenforceable

[FORMISTER]

Ok,

it seems to appear that the lease hire is with 1pm Ltd but was handled by Oakfield Leasing,

when the lease finishes the final payment is paid to Oakfield.

 

I think the issue is that he doesnt want to hand the stuff back,

he just needs to get through until March, so is looking to see who he has to pay, who can wait longer without defaulting

[dx100uk]

its a lease agreement he has no choice

theres no right to buy

[FORMISTER]

Yes, but 1pm tell him that when the agreement runs out its nothing to do with them, its between him and Oakfield leasing.

 

Oakfield leasing say its a one of final payment

 

An odd way about things if you ask me

[dx100uk]

is this in writing?

[FORMISTER]

I believe so, he's just waiting for an email back from Oakfield Leasing

[FORMISTER]

Thanks for your advice on this DX

 

In the end he managed to refinance and pay the leases off with a much smaller monthly loan.