Reclaim Hire Purchase Charges

Hire Purchase, commonly known as HP, is a very common way for paying for one-off expensive items such as furniture, computers and cars. We've all seen the adverts for the big furniture superstores saying that you can pay for items over a few years and that's what Hire Purchase is.

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Unlike a standard loan or credit card, the sofa, car or computer you buy do not belong to you straight away with HP, instead:-

-- The goods are not legally yours until you have made all of the payments
-- The finance company, not the retailer, won the goods until you have made the final payment
-- If you fail to keep up the payments, the finance company can seize the goods
-- You are liable for any damage caused to the goods until final payment is made

Typically with a Hire Purchase agreement, you make an initial deposit and then the balance is spread over an agreed period of time and interest is also added to your payments. At the end of the agreed term, the goods are yours as long as you have made all of the payments.

Like many financial products that have been sold over the last few years, many Hire Purchase (HP) agreements have been missold and you may be eligible to reclaim money paid. If you have had, or still have, a Hire Purchase agreement taken out within the last 6 years the you may be able to:-

-- Reclaim money that you paid as an "early repayment charge" if you paid back the amount of your HP agreement early.
-- Reclaim PPI (payment protection insurance) on your HP agreement if it was missold – If it was not explained to your properly, if it was not suitable for your needs or if it was added to the HP agreement without your knowledge.

An "early repayment charge" or penalty is a penalty that is charged by the finance company if you settle the loan early. However, this charge should be reasonable and reflect the true cost of cancelling the agreement, and not be a way of the finance company making a huge profit. If your "early payment charge" was an unrealistic and unreasonable amount then you may be able to get some of it refunded back to you.

PPI or Payment Protection Insurance is an insurance product which is designed to protect you if you lose your job, become too ill to work or suffer an accident. PPI is great for people who want the security of knowing that their HP payments are covered in the worst case scenario. But, PPI is not suitable for everyone and it may have been missold to you. Many consumers have found that their PPI does not even cover them in their personal circumstances and they have been paying costly premiums for nothing.

You should check your HP agreement to see if it includes PPI and ask. You may be eligible to reclaim premiums paid if the PPI was added without your knowledge, if it is not suitable for your circumstances or if it was not explained fully to you.

If you think that you have been missold a Hire Purchase agreement or PPI, or if you have any doubts at all, you should contact us. Our specialist solicitors can look at your policies and agreements, and consider your personal circumstances to see if you have a case. If you do have a case, we can guide you through the whole process and help you reclaim up to thousands of pounds that you really should not have paid.

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