With an unsecured loan agreement, title to the items passes to you upon delivery, in accordance with the Sale of Goods Act. With a hire purchase agreement, title does not pass until the final payments have been made.
I often see people who think that they were sold a hire purchase agreement - particularly for cars - actually discover that they have got an unsecured loan agreement. Clearly for IPs it is essential that this is clarified before detailed advice as to options can be provided.
Hire Purchase, I believe, also gives the debtor rights to return the gooods after a proportion of the debt has been paid.
I must admit I haven't seen many examples of HP on furniture other than the likes of Brighthouse so will be interested to learn of other furniture retailers using this type of agreement.
I too always double check any car finance as many people believe that they are in a HP or Conditional Sale agreement only to find that the finance is actually not the above and is not secured against the vehicle.
I think I am correct in saying that Hire Purchase and Conditional Sale agreements are secured against the product and Personal loans and Fixed term loan agreements are unsecured finance agreements
That is correct Andy. I once misread a Kirby agreement for a client, where I was convinced that it was a loan rather than HP - well the Kirby man turned up to repossess a 3 year old vacuum cleaner, and I had to purchase my client a new Dyson as this was my fault!
They were supposed to be good - would never pay that for a vacuum cleaner!!
The most expensive item in our kitchen is the Rangemaster cooker (now 8 years old) bought on the plastic (surprise, surprise) and very pricey but was worth it.
I think that if you bought Mrs D a Kirby for her birthday you would end up wearing it Andy! I have it on very good authority that tbe special lady is expecting diamonds!
