Half rule handing back car on HP

Flaccus · 10-02-2014 5:16pm #1

I was hoping someone could could offer advice to my mate on handing back an 07 car under the HP half rule. The finance company in question are GE Money whose loans are now managed by Pepper finance.

-Car bought new in 07 - worth approx 34k new. 5 year HP agreement. Car worth only 6k now.

-Beginning 2010, rescheduled for reduced payments (almost half), and then a year later rescheduled again, reducing the payments slightly. He does not believe there was any new HP agreement signed.

-To date paid approx 36k. Outstanding is 35 repayments at 297 euro each.
Pepper will settle for 9600. So total cost would be in region of 46k.

-Queried half rule and was advised a specialist would ring back next week but the following was outlined :

1. Application for termination would depend if half paid

2. Would have to pay for repairs...only minor chips on car and some clearcoat peel on rear spoiler. Assesor would determine cost.

3. Voluntary termination form will be sent and were adament it would not affect credit rating like a voluntary surrender. He questioned this as all advice is to sign nothing, and just send a letter as advised by consumer affairs. However they insisted form would say nothing is owed.

4. Contractual fees may apply. Explained as the difference between what was paid and what would have been paid if finance not rescheduled. No time frame given but car would have been cleared end 2011 so calculate they could ask for over 6k euro.

My friend is mainly concered with point 4. above. As his loan was resceduled 2 years before it would have been cleared would they be within their rights to ask he pay back what he would have paid at the full rate over that 2 years period or would they take into consideration the fact he has paid 78% of the total amount he would pay if he kept up repayments until end 2016 and therefore ask for nothing.

thanks

bop1977 · 10-02-2014 5:57pm

The half back rule is gone. Your mate can hand the car back and walk away debt free.

Flaccus · 10-02-2014 9:58pm

That's good to know. When did this rule change ?

Half rule handing back car on HP

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