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HI. I HAVE A HIRE PURCHASE AGREEMENT ON A CAR WHICH WAS OVER…

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HI. I HAVE A HIRE...
HI. I HAVE A HIRE PURCHASE AGREEMENT ON A CAR WHICH WAS OVER 4 YEARS. THERE IS 9 MONTHS TO GO AND I HAVE ONE MONTHS ARREARS(JUNE). THE FINANCE COMPNAY HAS APPOINTED A COLECTION AGENCY TO COLLECT THE ARREARS. THE COLLECTION COMPANY HAS WRITTEN TO ME AND WANT TO CHARGE ME £175.00. PLEASE ADVISE IF THERE IS ONLY JUNE OUTSTANDING AND NO OTHER PAYMENTS DUE CAN THE FINANCE COMPANY TAKE THIS SORT OF ACTION AND WHAT ARE MY OPTIONS. MANY THANKS
Submitted: 8 years ago.Category: UK Law
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Answered in 1 minute by:
6/24/2010
Solicitor: Jo C., Barrister replied 8 years ago
Jo C.
Jo C., Barrister
Category: UK Law
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Is this the first time you have been in arrears?
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Customer reply replied 8 years ago
NO. HAVE BEEN IN ARREARS BY A MONTH BEFORE
Solicitor: Jo C., Barrister replied 8 years ago

If this is a regulated hire purchase agreement then they need a court order to take the car from you as you are more than half way through the agreement.

 

Just make payments on the arrears. If its only one month you will have paid it off before the matter gets to court.

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Customer reply replied 8 years ago
WHILST I UNDERSTAND THAT THEY CANNOT TAKE THE CAR WITHOUT THE COURT ORDER MY QUESTION WAS WHY DO I HAVE TO PAY THE COLLECTION COMPANY CHARGES AS I DO NOT FEEL ONE MONTH IN ARREARS CONSTITUTES THE COMPANY APPOINTING A COLLECTION AGENCY AND INCURRING UNNECESSARY CHARGES. ALSO POINT TO NOTE IS THAT I HAVE ANSWERED ALL CALLS SO THEY CANNOT USE THE EXCUSE THAT I HAVE BEEN AVOIDING THEM.
Solicitor: Jo C., Barrister replied 8 years ago

 

They are entitled to charge reasonable charges arising from what they have actually incurred. Probably £175 is excessive and they would not get that amount at court. Its difficult to see how they could argue that they have incurred £175 worth of costs by reason of this default.

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Customer reply replied 8 years ago
THEREFORE AM I ENTITLED ONLY TO PAY THE ARREARS DIRECTLY TO THE COMPANY AND REFUSE TO PAY THE COLLECTION COMPANIES CHARGES
Solicitor: Jo C., Barrister replied 8 years ago

 

Well, you need to understand the difference between what they will accept and what the courts would make them accept.

 

Probably, at court, you would get that ruling. But the company will not accept it and refusing to pay the collection charges may lead to them taking legal action. If it were me, I'd probably fight it but I don't know whether you are willing to do that or not.

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