Car Hire Purchase "Half Rule" Confusion

dazcush

Hi folks, hoping someone can clear this up a bit for me;

Entered into a HP Agreement with PTSB in January 08.
Repayments of €250/month for 12 months, followed by €32,570 balloon payment.
Hire Purchase Price at this point, as per contract, was €35,695.00.
Half Rule Price in contract is noted as €17,847.50.

I was unable to make the balloon payment, and paid €350/month for 4 months.
Payments then increased to €661.65/month in June 09, and I have been making those payments ever since.

I recently contacted them and they confirmed that my finance is still a Hire Purchase, and they sent me out a copy of the original agreement, along with a full account statement.

The opening balance on the statement (from Jan 08) is €44,079.
The outstanding balance on the statement (as per Jan 11) is €27,157.58.

So I have so far paid €16,921.42.

My question(s);

Does the original Half Rule Price still apply to me? As in, am I only €926.08 away from meeting the Half Valuation, at which point I could hand back the keys?

Or

Do I now have to have paid half of the €44,079 amount (€22,039.50)?

Or

Do I in fact still have to reduce my outstanding balance from €27,157.58 to the Half Rule Price?


The reason I ask is that the section in the agreement that deals with this is worded quite badly;

"1. The Hirer may put an end to this Agreement by giving notice of termination in writing....
"2. The Hirer must then...
i) Pay any instalments which are in arrears at the time when he gives notice, and
ii) if, when the Hirer has paid those instalments [any arrears], the total amount under the Agreement is less than €17847.50, the Hirer must also pay enough to make up that sum"


Any help greatly appreciated

Daz

30lady

did you pay a deposit or trade in a vehicle in jan 08

when you were unable to make balloon payment did they send you out the revised payment plan/agreement to sign - because the way I would see it is that is you broke the original agreement by not making the balloon payment therefore there should have been a new agreement to sign with a different total hire purchase price and if they haven't they could argue that the agreement showing the lesser total hp price is not applicable

if you do voluntarily surrender vehicle under the half rule make sure you get a mechanic to look at it and deliver it yourself to the agreed location as ptsb finance will charge you for "repairs" and collecting the vehicle.

dazcush

No deposit or trade in.

To be honest the only time I remember signing any new document was when they agreed to move one payment to the end of the agreement. As it stands, the balance statement I have begins in January 2008. If I was on a new agreement I would have expected that to have a completely new a/c number and different payment start date?

thanks

Daz

chris85

30lady wrote: »

did you pay a deposit or trade in a vehicle in jan 08

when you were unable to make balloon payment did they send you out the revised payment plan/agreement to sign - because the way I would see it is that is you broke the original agreement by not making the balloon payment therefore there should have been a new agreement to sign with a different total hire purchase price and if they haven't they could argue that the agreement showing the lesser total hp price is not applicable

if you do voluntarily surrender vehicle under the half rule make sure you get a mechanic to look at it and deliver it yourself to the agreed location as ptsb finance will charge you for "repairs" and collecting the vehicle.

its not a voluntary surrender, its voluntary termination. very big difference. if he quotes surrender he will be liable for remaining balance

30lady

chris85 wrote: »

its not a voluntary surrender, its voluntary termination. very big difference. if he quotes surrender he will be liable for remaining balance

never said he should quote anything I said.


Daz I really don't get where they got that €44079 figure from..

maybe give FLAC 1890 350 250 for free legal advice on it.

chris85

30lady wrote: »

never said he should quote anything I said.


Daz I really don't get where they got that €44079 figure from..

maybe give FLAC 1890 350 250 for free legal advice on it.

I didnt say you said to quote anything but your post mentions voluntary terminating under half rule. This is not correct and the wording is very important fo do this so i am clarifying for the OP.

micki1983

yes it is extremely important to say that it is a voluntarily termination NOT voluntary surrender. Besides the fact that you will be liable for the remaining balance a voluntary termination means that your credit rating will not be affected. Also, it is generally advised that you should put it in writing and send to your car finance institution as an official notification of termination. be aware that the bank may send out a voluntary SURRENDER form and it is important NOT to sign this. i just wrote to PTSB today and they say I'm liable for mileage penalties over the average? Does anyone know is this average per annum 10,000 or 20,000 miles or kilometres and is this mileage penalty acceptable according to Half Rule legislation? Appreciate any other experiences of handing back car and any repercussions?