All loans from London & Surrey Motor Finance are purchase leases. Lease purchase agreements may be regulated or unregulated under the Consumer Credit Act. Unregulated contracts apply to limited liability companies and partnerships with more than 3 members. While regulated agreements apply to individuals, individual entrepreneurs and partnerships with fewer than 3 members. If your credit agreement is covered by the Consumer Credit (EU Directive) Regulations 2010, you also have the right to settle part of the contract early. It is a “partial early colony”. You can settle part of your debt at any time by using London & Surrey Motor Finance Ltd. Communicate your intentions. It is important that you indicate that the payment is designed as a partial advance billing and not as a deposit to benefit from a discount.

Since most luxury car buyers regularly change cars, Magnitude Finance says an unregulated financing agreement, with high exit fees, calculated against the outstanding balance, which is usually a large amount, is clearly inadequate. Please note that the contract cannot be terminated if the credit amount exceeds £60,260. In summary, a regulated rental agreement must be fully explained to the consumer by a licensed professional, your rights and commitment, in accordance with the terms of the agreements, must all have been clearly explained and in court, the lender has a long process of recovering the car in case of delay. Here you can be asked to sign and legally declare that the car is used for mileage production, renouncing your still important consumption rights and allowing the lender to apply unregulated conditions. Under the CSF, any repayment you make consists of both principal and interest repayments – the interest element of the payment will be most important at the beginning of the agreement. A regulated agreement gives you the right to terminate a contract prematurely if you have paid half or more of the total amount to be paid. You simply return the car to the lender, and the deal ends, so you don`t have to pay anything anymore. The car must obviously be in good condition for its age and mileage. Rental purchase (HP) is a type of loan.

It is different from other types of borrowing, as you only own the goods once you have paid in full. As part of an HP agreement, you rent the merchandise and then pay an agreed amount in instalments. While you are still making payments, you cannot sell or dispose of the goods without the permission of the lender. If you do, you are committing a crime. “Those who sell these products do so because they are very lucrative due to high interest charges advanced at the beginning of the deal and expensive exit fees. Companies can get licenses to sell money, but the license to sell regulated funds is extremely strict. So how can a lender convince you to sign an unregulated financing agreement if you could sign a regulated agreement with all the benefit and protection of the law on your part? Everything seems simple and quite straight, quite effective in many ways. You start checking your copy of the deal (if you had another one) and you`ll see that the title on the papers indicates the unregulated rental purchase, but you`re not quite sure what that means, as it hasn`t been clearly explained. Car buyers are warned of being stung by hidden fees in unregulated car finance deals, which could take thousands of pounds out of their pockets. If the lender terminates the agreement, for example because you have not kept up to date with the repayments, he can possibly take back the goods.. .

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