How Do I Successfully Reneogotiate A HP Agreement?

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Wishes

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Has anyone been successful in renegotiating a car HP agreement with their lender?

I'm paying off my loan monthly but not the amount the bank requires. There's 8K left on loan and the car is worth approx 3K to 4K.

The bank have said if I don't pay the arrears they are seeking legal action.

Any advise welcome please?
 
Hi Wishes
Can I please advise that as my name suggests binterdontat. After longer than a year of calls from withheld numbers, harassing letters (which you charged for too) it was finally revealed to me that i was entitled to a rescheduling of the loan two times in the period of the loan. Utter disbelief was the reaction. Please request a full copy of your terms and conditions of your loan. Request are you entitled to any rescheduling throughout the term of the agreement. Do everything in writing and keep copies. Always take the name of any person you deal with over the phone. Send a letter after you have received reply to above stating your circumstances etc and how you propose to deal with the future of the agreement. Be clear about what you intend to pay monthly and whether you will be in a position to change this in the future eg. if your circumstances will change.
In my experience where the monthly cost was equal to a mortgage and we were 3years into the loan, i got it halved for a 6mth period where the payments will then resume to a lesser amount than originally paying, however the period has been extended for 6mths. Not ideal but it helped at the time. Can i add that from what i believe and maybe i stand corrected if it were to go to court if you can prove to the judge that you are keeping up your payments to the best of your ability nothing will happen. Also there is something i have read on this site re: rule 52 not too sure of the details something to do with how long you are into the agreement maybe you should check it out.
Anyway hold your nerve we are all on the same ship....and believe it or not so are the banks....its just they seem to be the captain.
 
Thanks Binterdontat.

I contacted the lender and they told me to return the car and they will not chase me for the remainder of the loan.

This sounds too good to be true. Mind you she should would not put this in writing.
 
If the HP is worth three or four thousand Euro they may well write off the remainder of the loan but you most definitely would want to have this in writing. As far as I am aware they will chase you for the arrears after the HP has been returned so just to keep that in mind.
 
Sounds like they're using the half rule - i.e: once over half of the total payments including interest and admin fees are paid you are entitled to return the asset in place of finishing paying out the term.
I've done it before and it was a huge burden out our expenditure every month with no comeback on me
 
Yep sounds like the 1/2 rule alright. However it might also be worth thinking about the 1/3 rule.... if you have paid a 1/3 back then the car cannot be taken back from you unless the bank get a court order.
So you need to ask yourself ... Do you really need the car ?... If the answer is -
No then give it back under the 1/3 rule.. you will need to read up on this as the HP cannot be in arrears (as far as I know)
Yes I need car but maybe cheaper car would be ok ... same as above
Yes I need this car - call and write to the bank ask them to lower your repayments - either pay the loan back over a longer term or reduce the payments for say 12 months.
If you don't get anywhere - tell them to stop calling you and only send you letters that the consumer credit act requires (about 2 or 3 letters). I would put this in writing also. After this if the bank contacts you - make a complaint (again in writing) if this still continues you have a right to complain to the FSO -Financial Services Ombudsman.
However if your HP is in arrears you will need to remember that your credit rating will show this.
 
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You say OP that you are somewhat furnishing your debt. I find it crazy that your lender would ask you to return the HP when obviously in the long run they will receive more money from you if they keep excepting your payments.
 
They realise that in time I will clear the debt but they are not willing to lenghten the term of the loan because they believe it will be dragged out too long. They would prefer me to give the vehicle back.

Iscritto, thanks for that. I did not now there was such a thing as the 1/3 rule. I'd wondered why the lender was advising me just to hand bank the keys as it would be easier on all involved. I thought they could just come out and remove it from the front garden. How long would it take for them to aquire a court order? Would the court take it in to consideration that I have been making some form of payments?
 
Once again I stand corrected, from what I am aware they are not allowed onto your private property or drive however it may be taken from outside pavement. If you are paying as much as you can afford and maintain this on a regular basis hang in there. It will take time to go to court etc, if that happens at all. If you can prove to the courts you have done your best to keep up your part of the bargain I would be surprised to see the courts order against you. I believe there is a serious shift in what is happening with regard to what is happening to everybody whom are trying to reconcile outstanding bills so keep your head and remember its only 4 wheels and a steering wheel just like 4 walls and a roof... life is too short other things are more important, if its really getting you down ...tie a big red ribbon round it and leave it outside with a gift card saying happy selling!!! and enjoy the relief ...what fools we were...but move on as I said we are all in the same boat.
 
sorry almost forgot....everything in black and white...you start the process if you have to. initiate all proposals in writing and respond likewise. also take copies of whats posted and reg post... just in case you do go to court it should show prudence in your dealings and that you are taking the matter seriously.
 
Courts would be very understanding if you are making payments that you can afford.... and the banks know this. It would cost a lot for the bank to take you to court and at the end of it the judge would order them to accept the repayments. I would call the lender back and ask for the supervisor. Banks don't like for people to give back cars as it is a big loss for them... I think the person on the phone wanted to press you for more money.
 
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