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hire purchase agreement charges


moongarden
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I have just got rid of a car i had on HP by voluntary termination.

 

they are trying to say i owe them collection charges. basically several £35 charges for sending me a letter telling me my direct debit had not gone through.

 

I disputed the charges saying that they were illegal and they have come back saying that

 

"the OFT report that you refer to is based on Credit card charges only."

 

(their exact capitalisation and grammar!)

 

I know that their statement is not true as bank charges aren't credit card charges either.

 

Can anyone please tell me if it is possible to defend against these charges?

debt free wannabe!

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Hi there,

 

Yes you can defend against them. I would write a letter to them basically stating that these charges are unlawfull in common law atc.and therefore you will not be paying them. You could alter the wording of the initial letter in the template library.

 

Please note the use of unlawful rather than illegal.

 

The onus will, in my opinion, still be on them to prove that their charges were reasonable, exactly the same as would happen with a bank or credit card company.

Advice & opinions given by Woolfie are my own, and are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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  • 3 months later...

the charges are illegal under schedule 2 item 1e of the unfair terms in consumer contracts regulations 1999, which state that .."Indicative list of terms which may be regarded as unfair, item 1(e) Terms which have the object or effect of “requiring any consumer who fails to fulfil his obligation, to pay a disproportionately high sum in compensation.” The charges are disproportionate in that they dont actually cost the amount charged, ie a computer generated letter dosent cost them £35 to send....thats my understanding, anyway!

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  • 5 months later...

Bearo

 

Did you take the HP company to court, did you win....i am having a problem repudiating a contract with an HP company

Long time ago in a galaxy FAR FAR AWAY, there lived an elf who shot banks for a living.........

Now through the power of the internet there is the CONSUMER ACTION GROUP,

 

Watch out they are getting crafty those pesky CRITTERS!

 

Banks will tell you their charges are transparent!

So is the invisible man but that does not mean he is fair or lawful.

 

DONT GIVE UP! FOLLOW THE CAG ADVICE AND RECLAIM YOUR CHARGES.

CAPITAL BANK! YOU ARE NEXT.

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