Help with HP agreement with Blackhorse - Caravan

[GazNicki]

I bought a caravan in August 2016,

during the process was somewhat misled with the purchase and how beneficial it could be.

 

 

I can afford the repayments, but unfortunately the information we was given on purchase wasn't 100% accurate and our homework wasn't as thorough as it could be, so now we are in a position where we cannot afford the site fees for the caravan and are now looking at the caravan being evicted off the park.

 

This however leaves us in a bad spot as there is nowhere else for thee caravan to go, and moving it off site is expensive. The whole game is wrapped right up.

 

I purchased the caravan for £11995.

I paid a cash deposit of £5691.

I took out a HP agreement on the remaining balance of £6304.

 

Looking at my HP agreement for options, there is an option to "Terminate the HP Agreement" which for us would probably be the best solution.

 

The text reads as follows:

 

TERMINATION: YOUR RIGHTS

You have a right to end this agreement. To do so, your should write to the person you make payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £6844.14. If you have already paid at least this amount plus any overdue installments and have taken reasonable care of the goods, you will not have to pay any more.

Reading this, the amount payable is exactly 50% of the total amount of the van. The cost of the HP, including the interest at 12.9% is £7997.28.

 

£7997.28 + the cash deposit of £5691.00 = £13688.28

 

50% of £13688.28 = £6844.14

 

Reading this, then the agreement includes the cash deposit. Therefore, in order to make the total of £6844.14 I would need to make 7 monthly payments on top of the deposit to have the ability to terminate.

 

However, speaking to the HP company, it appears that the total that should be in the Termination section is incorrect. I don't really want my credit report to be destroyed over this mistake as I am looking to be buying a house in the next 3 years. Please can you help?

 

My main issue is that the balance for the VT is wrong.

 

The balance for VT should be 50% of the amount on finance, not the total amount of the entire purchase. When I phoned the creditor, they confirmed that it was wrong.

 

Basically, the amount to VT should be 50% of the finance, which including interest is 50% of £7997.28 = £3998.64. However, they have taken the full balance including the cash deposit into consideration.

 

My question is, where do I stand now.

 

If the entire balance, including the cash deposit is taken into consideration, then I have paid more than 50% of that agreement as my cash deposit and the 7 payments made to date exceeds the 50% mark.

 

If they do not take the cash deposit into consideration, then there is an outstanding balance, but the agreement I have in front of me is wrong.

 

My issue is that if the latter is applicable, the caravan will need to be put somewhere until the 50% is paid unless the creditor will take the van off me and agree for me to continue making payments until the 50% is reached (but that doesn't change the fact that the agreement is wrong).

 

Please can you advise me on this. Several people, including myself, believe that the policy is incorrect and therefore void. What's your input?

 

Please note: I have also posted this query on another site (Money Saving Expert), but am looking for solid advice so looking here too. Apologies to any member who has read this on there too.

[Andyorch]

You have the right to terminate and end your agreement under Section 99 of the Consumer Credit Act 1974 at any time before your last instalment is due, although you will have lost the right to terminate your agreement if the creditor has already terminated it or if the full balance of the agreement has become payable.

 

If you decide to terminate your agreement voluntarily and hand back the goods to the creditor, you should only have to pay up to half of the total amount payable under the agreement, minus sums that you have paid and sums that are due. Sums that you have paid include any deposit plus the instalments that you have paid. Sums due are any arrears or missed payments due at the time of termination.

 

The one half or 50% figure is stated on the agreement in the box headed Termination: your rights.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?400179-Inform-your-creditor-that-you-are-terminating-your-hire-purchase-conditional-sale-agreement

 

Regards

 

Andy

[GazNicki]

Thanks Andy.

 

I was reading somewhere that the 50% mark is only applicable to the balance of the finance, not the total balance. Am I wrong? If I am wrong, then I should be able to VT now as I have made more than 50% of the agreement as stated when the cash deposit is taken into consideration.

[Andyorch]

You have the right to hand the Caravan to the finance company as part of a voluntary termination at any point during your agreement – if you have not already paid 50% of the total amount repayable (not the amount borrowed as you have to include interest and fees) you will need to make a payment that means that half of the total amount repayable has been paid.

 

The finance company cannot charge you an extra fee or fine for this. However you will be responsible for paying any arrears and any amount arising if you have breached the obligation to take reasonable care of the Caravan.

[GazNicki]

You have the right to hand the Caravan to the finance company as part of a voluntary termination at any point during your agreement – if you have not already paid 50% of the total amount repayable (not the amount borrowed as you have to include interest and fees) you will need to make a payment that means that half of the total amount repayable has been paid.

 

The finance company cannot charge you an extra fee or fine for this. However you will be responsible for paying any arrears and any amount arising if you have breached the obligation to take reasonable care of the Caravan.

 

Thanks Andy.

 

Sorry, but I'm still confused.

 

Does the VT price include the cash deposit or is it just the amount borrowed including any interest?

 

In other words, is the VT amount correct or have they got it wrong?

[Andyorch]

Amount borrowed +interest and fees......your deposit is nothing to do with it..thats been paid and taken off.

[GazNicki]

Amount borrowed +interest and fees......your deposit is nothing to do with it..thats been paid and taken off.

 

Then in that case, the amount quoted in the VT section is incorrect. The amount quoted is exactly 50% of the total amount including the deposit paid.

[Surfer01]

Forget terminating as you lose too much. Contact Black Horse and advise them that you want to sell the caravan privately. Inform BH that until the debt is paid in full, you will still be responsible for the balance. BH will probably be happy with this arrangement as we did this when selling our caravan.

Advertise the caravan on Caravanfinder.co.uk and only accept cash. If the buyer is savvy they will do a check and you can get them to speak to BH to confirm that BH are aware of the sale. They may be able to pay BH the outstanding HP balance directly using a card and give you the rest in cash. Worked for us.

The other alternative is to take it back to the dealership and see what they offer for it as now is the right time to sell a caravan