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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 12179
Experience:  30 years as a practising solicitor.
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I have a regulated consumer hire agreement that involves monthly

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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.
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 2 years 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?
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.
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