How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11153
Experience:  30 years as a practising solicitor.
31090051
Type Your Scots Law Question Here...
JGM is online now

I have a regulated consumer hire agreement that involves monthly

Resolved Question:

I have a regulated consumer hire agreement that involves monthly payments of about £800 annually. The agreement is about 20 months old. Can I terminate this under S101 of the Consumer Credit Act?
I had given notice earlier under Section 99, but the credit company told me that this did not apply as it was a hire agrement, and not a hire purchase agreement, as the property reverts to the owner when the agreement is terminated.
Submitted: 1 year ago.
Category: Scots Law
Expert:  JGM replied 1 year ago.
You can terminate under s101 unless:the total payments (disregarding sums payable on breach) exceed £900 in any one year;the goods are let out for the hirer’s business and were selected by the hirer and acquired by the owner, at the hirer’s request, from a third party;the hirer requires the goods to relet them in the course of a business.Unless there is an earlier termination date by some term of the contract the earliest termination is 18 months after the making of the agreement. Termination is effected by notice of the shortest payment period, or three months whichever is less, and only affects the future – such sums as have accrued due remain payable. As voluntary bailee the hirer is under a common law duty to take reasonable care of the goods and accordingly will have to pay compensation should they be damaged. I hope that helps.
Customer: replied 1 year ago.
Was the credit company correct to tell me that S100 did not apply as property remained with the owner? And, as I previously gave notice under S100, must my notice period under S101 start from a revised notice of termination or can I rely on the commencement date of my previous notice?
Expert:  JGM replied 1 year ago.
Section 100 doesn't apply at all as it relates to hire purchase agreements. In an HP agreement the owner of the goods is the HP company until the HP is repaid in full. You have to serve a new, correct, notice under s101.
JGM and other Scots Law Specialists are ready to help you