Hire Purchase Credit Agreements
Average amount reclaimed for each HP agreement claim : £140.00
Have you taken out a HP credit agreement in the past six years? If so and you have been charged for making late payments, returned cheque fees or failed direct debits you can make a claim to have these charges refunded to you.
What is an HP Credit Agreement
An HP credit agreement is a hire purchase agreement. They are often used in conjunction with car sales, but can be used when purchasing a wide variety of goods. The difference between hire purchase credit agreements and regular credit agreements is that you do not become the legal owner of the goods until you have paid off the agreement in full. This means that you are not able sell the goods while you are still paying instalments on your HP credit agreement without express agreement from the HP credit provider, as the goods are not legally yours.
Unfair Charges on HP Credit Agreements
If you miss a payment, make a late payment or have a returned cheque fee or failed direct debit your HP credit provider will in most cases charge you a penalty charge.
The Unfair Terms in Consumer Contract Regulations state that when offering finance banks and other finance providers, such as HP credit providers should only ‘impose charges in proportion to their costs’. This means that any HP credit charge which has been imposed on you should be equivalent to what the cost has been to your HP credit provider.
Nevertheless, many the companies operating HP credit agreements have continued to unfairly charge their customers far more than the cost to them has been.
If you believe you have been unfairly charged by your HP credit provider you can make a claim to have these charges refunded to you. Even if you have now repaid your HP credit agreement you can still make a claim for unfair charges going back 6 years.
