A collegue of mine had a personal loan, then went to the bank for a car loan - they recommended that both loans be rolled into one, and this appears to be a Hire purchase agreement - my question is this surely when the 'loan' amount is in excess of the car value (personal loan + full value of new car) a HP agreement would be an inappropriate type of agreement?
I can't see how this could be done. By its very nature you can't have a hire purchase for a loan. I suspect it would be in breach of the Consumer Credit Act 1995 which sets out the conditions for loans and hire purchase agreements. I would also contact the irish Financial regulator authority by email or phone to check this further. If your friend has already taken out the HP agreement on the above terms there may be issues about it's enforcability should he choose to challange it.
Can you expand? Does the document explicitly refer to 'Hire Purchase'? With HP, the lender normally retains ownership of the item until the final payment is made - are the bank attempting to transfer ownership of the car to themselves?
Can you expand? Does the document explicitly refer to 'Hire Purchase'? With HP, the lender normally retains ownership of the item until the final payment is made - are the bank attempting to transfer ownership of the car to themselves?