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Legal matters

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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:

HunterHearstHelmsley · 13/04/2023 19:31

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.

It wasn't before redemption. It was after.

GoodChat · 13/04/2023 19:33

Sorry OP, did he settle, get paperwork to say it was settled, then get this email later?

Original poster

Rosesbloomingnow · 13/04/2023 21:47

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.

they conifmed in email that it was their mistake and apologised profusely

OP posts:

Original poster

Rosesbloomingnow · 13/04/2023 21:48

hockeysticks89 · 13/04/2023 19:18

thank you @hockeysticks89 this is useful to know
what do you do if someone settled before you realised the error?

OP posts:

Original poster

Rosesbloomingnow · 13/04/2023 21:52

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

@WelshNerd thank you for your help. One agreement, two vehicles. Paid the settlement figure for vehicle 1 prior to settlement figure expiry date. Now they have asked for a huge settlement figure for vehicle 2, that includes the shortfall on vehicle 1. Expiry date for erroneous settlement figure for vehicle 2 expired yesterday.
Checked agreement, sadly it is unregulated.

OP posts:

Original poster

Rosesbloomingnow · 13/04/2023 21:53

GoodChat · 13/04/2023 19:33

Sorry OP, did he settle, get paperwork to say it was settled, then get this email later?

We havent seen paperwork to confirm settled, I wonder if perhaps on preparing this they realised the error.

OP posts:

FiledAwayInABox · 13/04/2023 22:04

That's a massive mistake 😮

hockeysticks89 · 13/04/2023 22:15

We'd probably send some letters to try and recover it but write it off if it's not forthcoming. We're very nice though, I can imagine some firms may go down the debt collector or CCJ route if their ts and cs are rock solid.

AnneElliott · 13/04/2023 22:33

I would get legal advice op. Worth paying for it to confirm the position and potentially write a letter for you to the HP company.

Would the rules of estoppel apply? Ops DH has acted to his detriment on the basis of an incorrect letter from the HP company.

prh47bridge · 13/04/2023 23:46

On rereading your OP, I see that you haven't settled for vehicle 2. I mistakenly thought you had settled for both vehicles. Vehicle 2 therefore still belongs to the lender and, as the settlement date has now passed, the original settlement figure is no longer valid.

You need to take the HP agreement and the settlement letter and consult a lawyer to find out exactly where you stand legally.

therealpumpkinbumpkin · 14/04/2023 00:18

This reply has been withdrawn

This has been withdrawn at the request of the user.

TakeMyStrongHand · 14/04/2023 00:36

I think you need to seek legal advice. I assume this will be an unregulated agreement, with little to no cover for yourselves and they will have T&Cs to cover this exact situation.

I also think because the second vehicle has not yet been settled, they have a get out.

Can you renegotiate the sale price of this to cover some of the loss?

I used to run settlements for a lease co and I'm trying to rack my brains as to what we would do as was a good few years ago and I believe with personal agreements you may have been ok but business to business I can't see it.

Africa2go · 14/04/2023 01:07

I agree you need legal advice but I would suggest that you halt the sale of the 2nd vehicle (you say you're committed to this sale - what does that mean, have you signed terms?) whilst you check the position. I think it sounds dodgy unfortunately - not many buyers would buy a vehicle knowing there was outstanding finance on them and as a pp says, the UK settlement letter appears to make it clear that you don't have title to these vehicles until settlement monies have been paid. Can yoh even give the title documents to a buyer?

Africa2go · 14/04/2023 01:08

*HP settlement letter

notquitesoyoung · 14/04/2023 10:37

Was the settlement figure issued as one figure for both vehicles or two figures? Not settling both before the deadline muddies the water. They can obviously now correct the error in a new settlement offer for the vehicle which hasn't been settled but if there were two figures in the original settlement figure they can't then bump up the cost of the second vehicle to account for the error with vehicle 1.

MrsMoastyToasty · 14/04/2023 10:41

Get help from your local CAB or follow their complaints procedure (all the way to the financial ombudsman if necessary).

Original poster

Rosesbloomingnow · 14/04/2023 21:43

notquitesoyoung · 14/04/2023 10:37

Two separate settlement letters unfortunately

OP posts:

notquitesoyoung · 16/04/2023 12:11

@Rosesbloomingnow Can you try CAB? I would think there's no chance of doing anything about the unsettled agreement, they incorrectly gave you. Figure and it lapsed so they are perfectly entitled to issue a correct figure even if it's higher but it can only relate to that finance agreement- they can't include an amount to cover the lower amount charged for the incorrect settlement figure. The question would be if they can amend the settlement figure after it's been settled by the deadline.

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