HIRE PURCHASE AGREEMENT

I bought a car two years ago and I am paying for it by way of a hire purchase agreement which I signed with my bank. I recently lost my job and I can no longer afford to make the payments. I only used my car for work so I no longer need it. What can I do?

Hire purchase is an agreement allowing a consumer to hire goods by paying agreed instalments for an agreed time period. The agreement is signed by the consumer (the hirer) and the lending institution (the owner). If there is a retailer involved, e.g., a garage, it also signs the agreement and supplies the goods in question. The person does not actually own the goods until the last instalment is paid, although he or she has full use of the goods throughout the repayment period.
A consumer can terminate the agreement at any time by giving notice in writing to the lending institution but penalties will be applied for breaking the agreement early.
The Half Rule Process is a consumer friendly rule allowing a consumer to end a hire purchase agreement if they have paid half of the hire purchase price. The consumer must return the goods and give notice, in writing, that they are ending the agreement. The consumer should check the hire purchase agreement to
ascertain exactly what amounts to half of the hire purchase price. The consumer will also be responsible for any repairs and any arrears owing. The half rule process benefits consumers in that it will not affect a consumer’s credit rating unlike if they voluntarily surrendered the goods or if the goods were
repossessed by the lending institution.

Locations

ATHLONE

Oak House,
39-41 Mardyke Street,
Athlone,
Co. Westmeath
N37 TA44

Tel: (090) 647 8433
Email: info@bccsolicitors.ie

GALWAY

9 Gray Office Park,
Galway Retail Park,
Headford Road,
Galway City
H91 WC1P

Tel: (091) 511 421
Email: info@bccsolicitors.ie

DUBLIN

24–26
Upper Ormond Quay,
Dublin 7

Tel: (090) 647 8433
Email: info@bccsolicitors.ie

MOATE

Main Street,
Moate,
Co. Westmeath
N37 EW70

Tel: (090) 648 2090
Email: info@bccsolicitors.ie

LANESBOROUGH

Main Street,
Lanesborough,
Co. Longford
N39 C8Y7

Tel: (043) 332 1200
Email: info@bccsolicitors.ie

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