Questions abour Reposession of Motorbike

[RedGixxer688]

Just have a few queries which I hope I can get answers from by seniors, past experiences or thos who have the know hows.

 

Scenario:

I am currently owning a bike which is under hire purchase from Credit Company BDC. My installments are due every 10th of the month. And lately, I have been short on my payments. As of 10th of October, I have defaulted on 3 months payment.

 

I then went to Company BCD to make 1(one) month installment payment on the 12th of October with view of making another 1(one) month installment payment by the end of the month. Company BCD accept this payment but also informs me that a Reposession Notice have been issued on the bike and they cant stop it. But the payment for 1(one) month is still accepted nonetheless.

 

Question:

1) I understand that Company BCD have the legal rights to reposess the bike as payments have been defaulted, but assuming that I somehow manages to clear the balance outstanding "installement owed" or the 1(one) month installment that was initially planned, will my bike still be liable for repossession?

 

2) As of today, my bike is still in my possession (not yet repossessed). Am I breaking any law?

 

3) And when I do manage to keep my payments up to date and current, will I be liable for any "repo fee" or "storage" fee as the Reposession Notice had already being sent out?

[ohayo]

Under hire purchase act, upon bike repo by the workshop/finance company. During the initial negotiating with them on the settlement of the repayment your loan (existing loan plus defaulted) with them, They have to release the bike back to you and at no circumstances disallow you from claiming the motorbike back. You can use reasoning such as the motorbike is my livelihood. Without it, you cannot work. Without work, you have no money. Without money, cannot settle monthly installment.

 

In your case, you have paid your first outstanding payment and promised to settle the next one by month. You are not in the wrong and they cannot repo your bike at all. If they do so, they lost the case if its brought up to the court.

 

Requirements relating to hire-purchase agreements

3. —(1) Before a hire-purchase agreement is entered into in respect of any goods, the owner shall give or cause to be given to the prospective hirer a written statement which shall contain the items set out in the Second Schedule.

(2) Where a hire-purchase agreement is entered into by way of acceptance by the owner of a written offer signed by or on behalf of the hirer, subsection (1) shall be deemed not to have been complied with unless the written statement was given to the prospective hirer before the written offer was signed.

(3) Every hire-purchase agreement —

(a) shall be in writing and in the English language;

(b) shall be signed by or on behalf of the hirer and all other parties to the agreement;

© shall —

(i) specify a date on which the hiring shall be deemed to have commenced;

(ii) specify the number of instalments to be paid under the agreement by the hirer;

(iii) specify the amounts of each of these instalments and the person to whom and the place at which the payments of these instalments are to be made;

(iv) specify the time for the payment of each of those instalments; and

(v) contain a description of the goods sufficient to identify them;

(d) shall, where any part of the consideration is or is to be provided otherwise than in cash, contain a description of that part of the consideration; and

(e) shall set out in a tabular form —

(i) the price at which at the time of signing the agreement the hirer might have purchased the goods for cash (referred to in this Act and to be described in the agreement as cash price);

(ii) the amount paid or provided by way of deposit (referred to in this Act and to be described in the agreement as deposit), if any, showing separately the amount paid in cash and the amount provided by any consideration other than cash;

(iii) any amount (included in the total amount) payable to cover the expenses of delivering the goods or any of them or to the order of the hirer (referred to in this Act and to be described in the agreement as freight);

(iv) any amount (included in the total amount) payable to cover vehicle registration fees in respect of the goods (to be described in the agreement as vehicle registration fees);

(v) any amount (included in the total amount) payable for insurance in respect of the goods or any of them;

(vi) the total of the amounts referred to in sub-paragraphs (i), (iii), (iv) and (v) less the deposit, if any;

(vii) the amount of any other charges included in the total amount payable (referred to in this Act and to be described in the agreement as terms charges);

(viii) the total of the amounts referred to in sub-paragraphs (vi) and (vii) (referred to in this Act as the balance originally payable under the agreement);

(ix) the total amount payable; and

[RedGixxer688]

Ok, so let me get this straight. As of today, I am still owing the Credit Company installments which were due on 10/9 and 10/10. One of which I am intending to pay by the end of the month. So what you are saying is they cannot repo my bike?

[RedGixxer688]

Double post ... sorry

Edited October 15, 2010 by RedGixxer688

[ohayo]

Ok, so let me get this straight. As of today, I am still owing the Credit Company installments which were due on 10/9 and 10/10. One of which I am intending to pay by the end of the month. So what you are saying is they cannot repo my bike?

 

Ultimately finance company just want their money back. Court case is the last thing at the back of their company policies as its involves money (unless necessary).

 

Yes. Technically speaking, you are not in the wrong as you have shown effort to repay the defaulted payments. You will have to pay late payment fees though. For now, it would be best to lay out the new installment plan with them. Get black and white agreement. To cover yourself in case they decided to do funny stuffs few months down the road.

[KeraKing]

just beware as they say the notice has been issue.

 

The repomen are 3rd party who has a list of bikes to lookout for.