Looking for Black Horse Hire Purchase cancellation advice/information

[KommanderKeen]

Hi. I'm looking into this for a friend (yes, that's actually true).

 

The scenario is this:

 

In August 2014 a car was bought on a Hire Purchase agreement from Black Horse.

 

 

My friend was in a relationship at the time and this car and the costs was to be shared between two people.

However they are no longer in a relationship.

 

I believe the HP is in my friends name and not the other persons.

She does not want to own the car as a single individual though.

 

So my questions:

 

- If the other person wants to keep the car for themselves is it possible to swap the entire agreement into their name?

- If neither of them want to pay for the car is there an option to A- terminate? or B- sell the car privately?

- If C- hand the car back and allow Black Horse to sell it then I assume they'll end up selling cheap and my friend still has a lot to pay back?

- Are there any options I haven't mentioned above?

 

In a sense, any solution where my friend can gain more than 50% of the outstanding value back is a winner.

 

Thanks.

[Conniff]

You won't be able to make a swop, any change would entail the same checks etc as if that person had applied for a loan.

 

You can't legally terminate but you can write to Black Horse telling them the story and see what they are willing to do.

You can ask for a settlement figure but they might just be a bitch being a bank and say more than is worth.

 

Handing back is always a risk as auctions rarely fetch anywhere near the retail value.

[dx100uk]

the most sensible option might be to see if

 

 

A: they will cancel the whole things

you hand the car back, they cancel the agreement totally -

know blackhorse FAT chance of that.

 

 

b: VT the car- though whomever signed the agreement will need to pay to the 50% mark after the cars auction return in taken off.

 

 

its on the reverse of the agreement.

 

 

dx

[KommanderKeen]

Thank you for the replies.

 

I'd just like to clarify what dx100uk said regarding voluntary termination... is there a function whereby after giving the car back (and before she's reached the halfway point) she'll only have to pay a lump sum up to the 50% mark (assuming, as seems likely, the car doesn't sell for enough to pay it itself)?

 

In the short term this means she'll be paying more upfront but in the long term this may mean less of a loss than keeping the car (from which she gains little benefit) and paying the next two years of loan + insurance.

 

It's all a loss for her really, just trying to find the option that has the least financial loss.

[Conniff]

Well the sale wasn't long enough ago so not many payments will have been made, so just stopping paying and having it repossessed is out of the question plus the damage to her credit file. Paying up to the 50% mark and handing it back (VT) will cost.

 

Unlawfully selling it in the hope of getting enough to pay off up to 50% probably wouldn't work either as the buyer would more than likely do an HPI check on it and find out it's financed and report you.

 

I think first off should be a letter to Black Horse explaining that the payments can no longer be afforded and asking what are the options.

[KommanderKeen]

Thanks again for the reply. I'll get on to that letter.

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?423906-Rules-and-Costs-of-VT-a-car-on-finance.&highlight=VT

[theoldrouge]

if you wish to VT, you can do so at anytime.

 

adapt the following to suit

 

You must vt under s99/100 cca1974. do not sign any of their forms, or agree to pay anything. The car has just to be in reasonable condition for its age. .Send them the following letter, they MUST action your request, you should endeavour to be present at the vehicle inspection---

 

VOLUNTARY TERMINATION OF AGREEMENT UNDER S99/100 CCA 1974

 

Account No: (xxxxxxx)

Dear Sir,

I am writing to notify you that I am exercising my right to terminate the above Agreement under Section 99 of the consumer credit act1974. You will understand that the aforementioned section permits the debtor to terminate the agreement at any time before the last payment is due. There is no restriction regarding the exercising this statutory right, particularly none in respect of any perceived arrears or monies due on termination

 

I understand that I shall be liable to you for the amount calculated under the formula in Section 100 of the Consumer Credit Act 1974. (50% of the TOTAL agreement inc deposit)

 

The above agreement will be terminated 14 days from the date of this notice.

 

Please send me details of how the vehicle can be returned to you.

 

You will be aware that statute prevents you from levying a charge for the recovery of this vehicle; guidelines also state that if you require me to deliver this vehicle it must be no more than a short (reasonable distance) from my registered address.

Please confirm receipt of this request in writing within 7 days of receipt.-Yours etc..