Black Horse HP - Consumer Credit Act 1974

[Kirkstaller]

First time poster in need of advice!

In October 2008 I bought I Ford Fiesta from my local Ford dealer. I decided to finance the car over 5 years through the dealer (with Black Horse) as this was a much quicker process than applying for a personal loan from one of the banks. The APR wasn't too bad and the car would be with me within 5 days.

When I read the agreement, I realised that it was in fact a Hire-Purchase Agreement (HP) and NOT a personal loan. The dealer explained that I could return the vehicle to BH after half of the finance had been repaid. I agreed to this as I liked the idea of having the opportunity to wash my hands of it in a couple of years.

A few weeks ago me and my wife discovered that baby no. 2 is on his way and that we would need a bigger car to ferry them around in. I reached for the finance agreement so that I could work out when I would be able to Volutarily Terminate and return the car back to BH.

The agreement clearly states at the top of the page, "Hire Purchase Agreement regulated by The Consumer Credit Act 1974".

However, further down the page it states, "You have no right to cancel this agreement under The Consumer Credit Act 1974".

Am I reading this right? If it is indeed a regulated HP agreement then surely BH can't not accept a Volutary Termination? The rest of the contract pertains to a HP agreement (can't change reg without permission, take outside of EU without permission, numerous references to HP) so it's not just a typo at the head of the page.

I'm due to have paid half the outstanding credit by March 2011. Is it worth ringing BH now to establish the precise terms of the contract or are they obliged to accept the car under the CCA?

Any help much appreciated

[crem]

I think the section on "no right to cancel" is something to do with when it is first set up i.e. once you agree to it then it is up and running.

Somewhere within the document should be a section headed "Termination. Your Rights" This section should show the values you must have paid (i.e. the 50% value) at which time you can hand it back with nothing to pay.

[Conniff]

You would be better off trading it in for a bigger car than handing it back. They will put it in an auction and if it doesn't reach what is still owed on the HP agreement, you will be billed for that outstanding amount.

If you should decide to hand it back nontheless, take pictures of every part of the car and in detail as they will also claim it was damaged. Check the report of the man who comes to collect it carefully before you sign it. Don't be afraid to disagree with something he has included if you feel it is not how he has stated.

Scan it as well with both signatures on so you have a true copy if he doesn't give you one.

[scaniaman]

As I understand the situation, every firm dealing in financial products has to have an employee( or several) who is authorised by the FSA? to conclude these transactions. I think you are victim, as indeed i was, to a salesman who didn't explain clearly what type of "loan" you were signing.
In my case, i thought it was straight and simple HP, as i was told it was a "Motor Loan". New terminology for everything nowadays. I, in fact signed a personal loan and the lender won't help me now that i have trouble. This may not have been the situation under HP.
I think that all this trouble and confusion on car finance is one reason why there is a rapidly growing number of people asking their MP's etc etc to bring about more regulation/ qualifications within the motor trade.
Conniff's advice is well worth considering--it's sound.

[heliosuk]

[quote=scaniaman;2728454]
As I understand the situation, every firm dealing in financial products has to have an employee( or several) who is authorised by the FSA? to conclude these transactions. I think you are victim, as indeed i was, to a salesman who didn't explain clearly what type of "loan" you were signing.
quote]

That's interesting scania and I hadn't thought of it. I understood it to be that the company had to have the license and the salesperson as well, if not then all forms had to be signed by the "business manager" whom is FSA registered who should give personal advice about other financial products available to make the purchase. So if the salesperson is not registered and does the deal, potters off to get the salesmanager to countersign the deal who is registered then the deal is illeagl.

Whilst I've been out of the excretia of the front line so to speak for quite a while, I understood that as soon as finance was involved you were marched off to see another person and he did the finance not the salesperson.

[postggj]

The Cancelation Option Saying You Cant Cancel Will Be Because You Signed On Trade Prem

No Wories On That

On The Agreement Under Termination Will Be A Section With A Figure Inserted Saying When You Can Voluntry Terminate.

It Will Be Half The Agreement

Make Sure You Send The Request To Black Horse In Writing By Recorded Delivery

[scaniaman]

Yes Heliosuk, that is correct in many instances. Although a bit off topic, I did a deal with a building society some years back. The office dame filled in the forms and explained the product, but i had to go back a few days later to get all signed up because their area manager was the only person authorised to do the final signing etc etc. The office dame was perfectly capable of doing all that was required but did not have authorisation.
We don't know exactly what happened in the case of the OP, but my point is that there is too much business being done by people not properly trained in the finance sector (LIKE CAR PRODUCT KNOWLEDGE) in the motor trade.
These things need to be explained fully to prospective punters as the average guy in the street has little or no knowledge of the implications of the various financial products available. Car salesmen nowadays only use the term "finance" to cover many products.

[Kirkstaller]

Got it sorted, thanks guys Just needed to pay closer attention ot the contract!