Another "Screwing" Technique

[Cornucopia]

And further to the above......

 

They do do VT - you might not have reached half way. It is not at their discretion but you need to check the type of agreement. Their are some dealers (Rover owners might recognise this) that will offer you a 'credit sale agreement'. This is just a loan and not an HP therefore you have no VT options. You could settle esarlier though in the normal way but you are into the rule of 78. You should get a rebate of charges though. Get a value on the car and see if it exceeds the outstanding amount. Remember - if you VT the dealer will probably get the commission he earned from your finance clawed back from the finance house. By using a CSA he protects his commission.

Again, HTH

BB

 

Hello again,

 

We have looked up the value of the car, as it was a limited edition model, they have held thier value quite well (it's a Hyundai Getz - they don't make the auto/1.6 any more) but I don't think we'd cover the finance, we might try and list it on ebay and see what happens, if we could get enough even to cover the bulk of the finance we could pay it back and job done! I will look into the credit sale thingy though!

 

Thankyou!!!!!

[BBloke]

Hello again,

 

We have looked up the value of the car, as it was a limited edition model, they have held thier value quite well (it's a Hyundai Getz - they don't make the auto/1.6 any more) but I don't think we'd cover the finance, we might try and list it on ebay and see what happens, if we could get enough even to cover the bulk of the finance we could pay it back and job done! I will look into the credit sale thingy though!

 

Thankyou!!!!!

 

Hiya. No problem. Somewhere on the agreement it should say what it is. I would expect it to be near the top on the front page. Given its only a couple of years old try calling the delaer who sold it to you and see if they would buy it back. Rather than worry I would just call the finance company ask them exactly what type of agreement it is. They should be able to tell you.

 

All the best.

[woolfie]

Hello again,

 

We have looked up the value of the car, as it was a limited edition model, they have held thier value quite well (it's a Hyundai Getz - they don't make the auto/1.6 any more) but I don't think we'd cover the finance, we might try and list it on ebay and see what happens, if we could get enough even to cover the bulk of the finance we could pay it back and job done! I will look into the credit sale thingy though!

 

Thankyou!!!!!

 

Also worth doing a forum search on 'hire purchase hand back' i started a thread a while ago and there was quite a bit of useful stuff in there.

 

Hope this helps.

[fuzzybobble]

It's otherwise known as the "rule of 78" which has since become illegal and will no longer be allowed on existing loans from 2007.

 

Hi Dave,

 

I have a question...

 

I have a 6 year loan with Northern Rock which I'm about 2 years into repaying.

Does this change of the law in 2007 mean that if I wait 6 months before paying the loan early I won't be subjected to the "rule of 78" charges?

It's mentioned in their terms and conditions + examples of how much I'd have to pay back. Does the new law apply to any existing loan or only on loans taken out in 2007 onwards?

If this is the case it may be worth waiting a while and not get hit with high early settlement interest charges.

 

Many thanks for your time, James

[BBloke]

My understanding is that the changes will only apply to new agreements made after that point. I did also think that it was up to the finance company itself. So some may be changing early. I would ask the finance company.

Sorry but I hope this helps.

[Doublebogey7]

I'm going through the process of complaining about the Rule of 78 with the RBoS.

 

They have told me that the formula is iaw CCA 1974, however there is no formula in there (or have I missed it),

 

The formula is actually contained in the Consumer Agreements(Early Settlement) Regulation 1983.

 

Now if this is the case and I signed my agreement to be governed by the CCA 1974, surely they should have specified in the terms and conditions of my loan what formula would be used in the event of an early settlement, which they haven't.

 

Anyone had any success getting them to drop the rule of 78 and is the formula contained in the CCA 1974?

[Scrooge]

This topic was closed on 09 March 2019.

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