Hire Purchase agreement

[mazel01]

I have now asked them for a statement of account, will update you when it arrives

[mazel01]

Just received the statement of account by email from them. It shows arrears for £400 & collection charges & default notices £600.....what should I do next?

[PriorityOne]

What's left after the charges have been deducted ? Does the email state what these charges are for ?

[mazel01]

Hi Priority One, I have just been reading through it and I am amazed!

 

Its made up of telephone call costs & letters....each telephone call is a £5 and letters £10.....

[PriorityOne]

Work out the total.... with all of these charges deducted from it. What's left ?.... or do the charges outweigh the balance ?

[mazel01]

Taking these charges off leaves £400, that they say are arrears.

[PriorityOne]

.... and would you be able to pay this balance off in installments ? If so, how much ?

 

By the way, if you're not satisfied that their figures represent all charges on this account, then you need to SAR. If you are happy... that's fine.

[mazel01]

I don't know if they will accept instalments for the balance.....They are waiting for me to take the car back and pay this balance. I want to take it to them first thing Monday. How should I handle the arrears?

[PriorityOne]

Well, considering they've slapped on a huge whack of charges which they would have been quite happy to take from you.... I know what I would do.

 

They need a letter.... so I will try and draft one up for you later this evening. Regardless of what they want, how much can you pay in installments ?.... or would you be in a position to clear the true outstanding balance of £400 straight off ?

[mazel01]

Thanks Priority One that will be great if you could draft something up for me....I can afford to pay £50 a month

[PriorityOne]

Hiya Maz.... send by rec. delivery and don't discuss anything over the 'phone....

 

 

Dear xxxxx

 

Re: Account No xxxxx

 

Following my recent request for a Statement of Account, I noticed that a substantial number of fees and/or charges had been applied to the above referenced account.

 

As these fees and/or charges appear to be contrary to consumer regulations and also have no basis in law, I have now deducted them from the alleged outstanding balance; leaving a total of only £xxx still to be paid, instead of the £xxx quoted by yourselves.

 

I would like to confirm that regular instalments of £50 per month will be maintained on this account until the sum of £xxx is cleared, but that nothing will be paid in respect of unlawful fees and/or charges.

 

Should you have any problems with this arrangement, then I would be grateful for a full breakdown and explanation of precisely how each fee and/or charge reflects any costs that you may have had. I would also like to point out that any legal action that you may decide to take will be vigorously defended.

 

I trust that this will not be necessary and look forward to your confirmation that my repayment proposals will be acceptable.

 

Yours faithfully,

[paulwlton]

I attended an application hearing regarding charges on my Hire Purchase account, the judge decided to allow me to enter a full defence, rather than defend their charges at a full hearing Lloyds deducted the charges from the account as a gesture of goodwill.

 

Paul

[mazel01]

Dear xxxxx

 

Re: Account No xxxxx

 

Following my recent request for a Statement of Account, I noticed that a substantial number of fees and/or charges had been applied to the above referenced account.

 

As these fees and/or charges appear to be contrary to consumer regulations and also have no basis in law, I have now deducted them from the alleged outstanding balance; leaving a total of only £xxx still to be paid, instead of the £xxx quoted by yourselves.

 

I would like to confirm that regular instalments of £50 per month will be maintained on this account until the sum of £xxx is cleared, but that nothing will be paid in respect of unlawful fees and/or charges.

 

Should you have any problems with this arrangement, then I would be grateful for a full breakdown and explanation of precisely how each fee and/or charge reflects any costs that you may have had. I would also like to point out that any legal action that you may decide to take will be vigorously defended.

 

I trust that this will not be necessary and look forward to your confirmation that my repayment proposals will be acceptable.

 

Yours faithfully,

__________________

 

How should I handle this, they know that I wish to voluntary terminate my agreement and hand the vehicle back. Do I take the vehicle to them and hand over the letter or send the letter first and wait for a response before taking the vehicle back.

[mazel01]

Just need someone to tell me whether I need to send the letter first...

[mazel01]

I need to answer the finance company today, so any help will be really appreciated.

[PriorityOne]

Maz.... why are you handing the vehicle back when there's only £400 outstanding on the account ?

 

Just send the letter and hang on to the vehicle ! They are only entitled to the £400... the rest was made up of charges.

[mazel01]

Hi Priority, I am just over half way through my HP agreement and wanted to voluntary terminate as I can no longer afford the monthly payment. I have paid over 50% of the agreement so I can just hand the car back & nothing else to pay except for the arrears. I have tried to make arrangements with the finance company to hand the car back but they won't accept it until I have paid these outstanding arrears. I cannot afford to pay the arrears in one go so I was going to send them the letter offering £xxx per month and at the same time hand the car back. Hope this makes sense.

[mazel01]

Please could someone confirm what i need to do next, the finance company have already called me this morning and left me a message.

[mazel01]

The charges that they have added on to my account which I am challenging includes default notices £25 a go and solicitors letters £25 ago. Do I have to pay these or are they the same as telephone calls & letters, which I am deducting?

[PriorityOne]

Maz.... there is only approx. £400 outstanding and not the amount they claim.... the rest is made up of charges. So in effect, you would be giving them the car and throwing them the money you've already paid as well.... when for £400, you could keep the car. They would be getting an absolute bargain at this stage !!

 

All these charges need to be deducted, including the £25 letters from supposed solicitors. When you've deducted all of these charges, send the letter I drafted up for you the other day.... pay them the balance in installments .... and hang on to your vehicle. Whether they agree to it or not is not an issue once they've cashed your payment.

 

Take control.... and if they 'phone you, hang up immediately. you are not obliged to discuss anything over the 'phone.... and if you do, they'll probably try all kinds of bowlarks to get you to dance to their tune over this. Don't do it.

 

In writing only.

 

[RFC1872]

Thats great.

 

So once I send them the letter what happens to the default notice?

 

Also I have just had a look at my original CC agreement and it says that I must have paid at least 50% of the total amount. So am I right in saying that because of the arrears I am short of the 50% by 3 months so they will just send me an invoice so to speak to make up the 50%

 

I wonder if this puts your agreement on shaky ground for them if they have stated in your agreement you cant give it back until you have reached 50% in your payments. Can you scan and post, taking care to remove identifiable information. Though one part being wrong may not render the whole agreement defunct. I would CCA them just now, or have you asked for a CCA in your SAR.

[mazel01]

Maz.... there is only approx. £400 outstanding and not the amount they claim.... the rest is made up of charges. So in effect, you would be giving them the car and throwing them the money you've already paid as well.... when for £400, you could keep the car. They would be getting an absolute bargain at this stage !!

 

 

Hi Priority, if I kept the vehicle I would have to pay off these arrears plus continuing payment my regular monthly instalment for another 24 months which I cannot afford to do. Thats why I thought it was best to voluntary terminate my agreement. Let me know what you think....

[PriorityOne]

By the time you've paid off the so-called "arrears".... you would be clear, Maz. You've said that you can afford £50 per month.... so send them a cheque for £50, together with the letter I posted earlier and go from there. This would leave you 7 months to repay the remaining £350.... not 24 months. Forget the arrears.... they are made up of charges.

 

If they get sh*tty, you can stall court action with a CCA request.... or submit a S.A.R - (Subject Access Request).

 

[mazel01]

But what about my regular monthly instalment of £200 per month? They will still expect that each month....I seem to be very confused

[PriorityOne]

You only owe £400 !!.... the rest is made up of charges. Are you going to continue paying their charges and give them your car ?.... that's the question you need to ask yourself.