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Original poster

HP settlement figure was wrong, do we have to pay the extra requested?

43 replies

Rosesbloomingnow · 13/04/2023 10:56

DH has vehicles on HP for work. He contacted HP company, who confirmed that the settlement figure for one vehicle was £11k and the second vehicle was £16k, so total £28k. This is one HP loan, for 2 vehicles. He has sold both vehicles for these amounts just to get rid of them and clear the HP.
He paid the £11k settlement figure for the first vehicle and he was about to pay the £16k for the second one, when the HP company said that they made a mistake and the total due was really £36k so want another £8k.
As they confirmed the settlement figures in writing, can they now ask for the extra cash? It wouldn't such an issue if he hadn't already sold them for the figures given. Whether he sold them for the right value is another issue, here I am just looking for the legalities regarding the written settlement figures.
Thanks for any guidance.

OP posts:
Facem81 · 13/04/2023 11:01

In your original agreement - what should the settlement be at this point?

Facem81 · 13/04/2023 11:02

The company itself…. Dodgy back street or we’ll known market leader

Hoppinggreen · 13/04/2023 11:03

Not a lawyer
What is the wording on the first settlement figure? Does it say it’s final or anything like that?

Facem81 · 13/04/2023 11:03

How have they worded the letter?

just “we made a mistake pay up”

or is there any explanation

Facem81 · 13/04/2023 11:04

Was the settlement figure given before they’d actually seen the condition of the car?

Cleoforever · 13/04/2023 15:34

Facem81 · 13/04/2023 11:04

Was the settlement figure given before they’d actually seen the condition of the car?

let me guess op

they offered a provisional figure on condition that the car actually matched the condition you said it was in

Turns out you said it was in worse condition than you’d said so they then increase the amount

your non response will confirm I’m right I reckon

AchillesElbow · 13/04/2023 15:36

Cleoforever · 13/04/2023 15:34

let me guess op

they offered a provisional figure on condition that the car actually matched the condition you said it was in

Turns out you said it was in worse condition than you’d said so they then increase the amount

your non response will confirm I’m right I reckon

Show quote history

This won’t be right. He’s sold the cars himself to clear the HP.

Cleoforever · 13/04/2023 15:42

AchillesElbow · 13/04/2023 15:36

This won’t be right. He’s sold the cars himself to clear the HP.

Show quote history

So he got a good deal and sold to naive buyers

It happens! Often

prh47bridge · 13/04/2023 17:45

Cleoforever · 13/04/2023 15:34

let me guess op

they offered a provisional figure on condition that the car actually matched the condition you said it was in

Turns out you said it was in worse condition than you’d said so they then increase the amount

your non response will confirm I’m right I reckon

Show quote history

How is the condition of the vehicles in any way relevant? The settlement figure is to pay off the loan, after which the vehicles belong to OP's husband (which is why he was able to sell them). The lender really doesn't care what condition the vehicles are in. Once the settlement figure is paid, they have no interest in them.

It would be different if OP's husband was returning the vehicles to the lender early. In that case, the condition of the vehicles would be a factor. But that isn't what happened here.

@Rosesbloomingnow That is a huge miscalculation on the part of the lender. Have they offered any explanation?

Original poster
Rosesbloomingnow · 13/04/2023 17:53

Facem81 · 13/04/2023 11:02

The company itself…. Dodgy back street or we’ll known market leader

very well known market lender. Vehicles are not cars. These are industry specific vehicles.

OP posts:
GoodChat · 13/04/2023 17:55

What does the settlement figure say vs the original contract?

Original poster
Rosesbloomingnow · 13/04/2023 17:55

Condition of vehicles is irrelevant to HP lender. Condition of vehicles is immaculate. Industry specific vehicles sold to another business in same trade. Value is not something you pull from auto trader. Hence DH happy to sell for settlement figure for an easy life. Or so he thought.

OP posts:
Original poster
Rosesbloomingnow · 13/04/2023 17:56

Cleoforever · 13/04/2023 15:34

let me guess op

they offered a provisional figure on condition that the car actually matched the condition you said it was in

Turns out you said it was in worse condition than you’d said so they then increase the amount

your non response will confirm I’m right I reckon

Show quote history

do you understand how HP works?

OP posts:
Original poster
Rosesbloomingnow · 13/04/2023 17:58

Settlement figures were in formal letters. Wording is:
Thank you for your request for a settlement figure in respect of the above asset(s) subject of your Hire Purchase Agreement. The information you require is set out below: Settlement Quote Reference: xxxxx Settlement Figure (including Option to Purchase Fee (if applicable)): £xxx Expiry date of settlement quote: xxx3 Please note - We do not accept 3rd party payments unless as result of a trade in You should continue to make your regular payments under the Hire Purchase Agreement until the Settlement Figure is paid. The Settlement Figure will then be reduced by the amount of any regular payment made. If any amount you pay to us under your Hire Purchase is returned unpaid (e.g. a direct debit is returned) before we receive the Settlement figure in cleared funds you will still be required to pay that unpaid amount in addition to the Settlement Figure. On receipt of the Settlement Figure (and any unpaid amount mentioned above) in cleared funds you will have title to the asset. If funds are not received by us by the expiry date referred to above you will need to obtain a new settlement figure from us.

OP posts:
GoodChat · 13/04/2023 18:00

On receipt of the Settlement Figure (and any unpaid amount mentioned above) in cleared funds you will have title to the asset. If funds are not received by us by the expiry date referred to above you will need to obtain a new settlement figure from us.

So he's sold the vehicles before he's legally owned them?

Viviennemary · 13/04/2023 18:01

There even seems to be a mistake £11k for one and £16k for other total £28k???? No the total is total £27k. Or is that just a typing error. Sounds like you need a solicitor to look at the original agreement.

Original poster
Rosesbloomingnow · 13/04/2023 18:01

Notification of their (huge) error is by email only, from someone on the sales side (the person that usually deals with DH to arrange new HP for new vehicles). The error was not made by this person, but by their back office. I am hoping someone on here understands the legal implications of this (ie the first vehicle settlement was paid in the appropriate timeframe and is therefore considered by us to be cleared), rather than assumptions of DHs business ethics. Thanks in advance.

OP posts:
YouveGotAFastCar · 13/04/2023 18:06

OP, what does the email notifying you of the error say? Are they alleging that you should have known the error from the initial contract?

If you work out the settlement figure yourself from the initial
contract, are they correct?

Original poster
Rosesbloomingnow · 13/04/2023 18:12

GoodChat · 13/04/2023 18:00

On receipt of the Settlement Figure (and any unpaid amount mentioned above) in cleared funds you will have title to the asset. If funds are not received by us by the expiry date referred to above you will need to obtain a new settlement figure from us.

So he's sold the vehicles before he's legally owned them?

You do it all on the same day. It is normal to do this. DH pays the settlement figure, HP is cleared, DH sells vehicle to other business, they send him the cash.

OP posts:
Original poster
Rosesbloomingnow · 13/04/2023 18:16

@prh47bridge yes enormous mistake. The problem is he has sold one, and committed to sellin the second. the email apologises a lot, for their error. I have checked the maths and the revised figure is correct, but he relied on the settlement letters, which is a very normal thing to do. DH did not know they were wrong.
@Viviennemary the difference is rounding
@YouveGotAFastCar they are not saying he shoudl have known, they are apologising but asking for another £8k that we do not have

OP posts:
BananaBlue · 13/04/2023 18:33

Sounds awful OP.

I would have thought it was their mistake, the last email sounds as if they believe this - they might be pushing it?

Do you have legal cover on your house insurance? They might be able to help.

and I really wish ppl would read posts before providing irrelevant/incorrect information esp when they are putting the boot in.

drpet49 · 13/04/2023 19:02

I don’t see how you have got a leg to stand on here. You even admit that the new total is correct.

prh47bridge · 13/04/2023 19:13

If you want a definitive answer you will need to ask a lawyer to look at the HP agreement and the settlement quote. However, I think there is a good chance you aren't liable for the additional money requested. Even if you are, the lender no longer has any security since, under the terms of the settlement quote, it is clear that they no longer have any claim to the vehicles, so I would be looking to negotiate a reduction in the amount and time to pay.

hockeysticks89 · 13/04/2023 19:18

I work for a company who issues settlement figures and if we issue one incorrectly then realise we've made a mistake before redemption, we just reissue it at the higher amount. Our Ts and Cs permit this.

WelshNerd · 13/04/2023 19:25

DH works in vehicle finance and has asked whether the agreement is regulated or unregulated. This info will be in the documentation he signed. If regulated you may have protection under the Consumer credit act. If unregulated then you are liable to pay.

Also, could you clarify:

  • This is one agreement for both vehicles?
  • whether he paid the 28k or just a partial amount
  • when the settlement figure expires
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