Client D approached BMOL Partners on a separate matter when BMOL asked to review the agreement.
The client approached his local dealer for a trade in and discovered the trade in value offered was €20,000. In order to dispose of the vehicle, he would have to come up with €40,000 or attempt to refinance the vehicle. BMOL Partners advised that under the 1995 Consumer Credit Act, the act that governs Consumer HP agreements, it is possible to return the vehicle limiting the liability to half the HP liability less the total of payments to date. BMOL Partners advised that the value of the trade in vehicle was included in the total of payments. BMOL Partners checked the numbers and determined that indeed the ‘half rule’ conditions had been met. The client notified the finance company and arranged the return of the BMW in full and final settlement of the liability saving €40,000.