Fees Charged on Personal Loans
Submitted by itsaramp on Wed, 13/04/2011 - 17:57
Hello
Can I be charged an option to purchase fee on a personal loan to buy a car? Should this fee be mentioned in the agreement along with the other charges? When does the title transfer to me - when I sign the agreement or when I've completed all the payments? Can the lender repossess the car? Please note - this is not HP but a personal loan. The agreement states that it is a Fixed Sum Loan Agreement Regulated By The Consumer Credit Act 1974 and it was taken out several years ago.
TIA
Its a ramp
A personal loan is just that
A personal loan is just that - a loan from a bank or financial institution to you. You can use the money in whatever way you want.
If you use that money to buy a car then the car becomes yours at the point of purchase.
If you fail to repay the loan the lender can sue for the sum due and pursue you using all civil methods of enforcement. This does not mean an automatic repossession of the vehicle.
The loan agreement should set out all the terms and repayments.
If it is a personal loan agreement that document will not contain an option to purchase because the loan was related to a specific transaction.
personal loans
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